Temu and Shein have cut their advertising expenditure in the U.S. in response to tariffs and the end of the de minimis tariff exception. This shift could positively influence American retailers and create openings for U.S. brands wishing to enter their platforms. However, the potential benefits to advertisers may be minimal as competition for ad space remains intense. With Temu capturing 17% of the U.S. discount market last December, the overall market dynamics could shift as local sellers adapt to these changes.
Temu and Shein's reduced U.S. advertising spend and price increases due to tariffs may benefit American retailers and create new opportunities for local sellers.
Tammy Scott of Tinuiti remarked that advertisers may not see substantial benefits as increased competition remains despite the decreased activity from Temu and Shein.
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