Temu, the budget e-commerce platform, has made a bold move by halting its U.S. Google Shopping ads. This decision comes when the company faces significant challenges, particularly with new tariffs on Chinese imports jumping to 125%.
As a result, Temu’s App Store ranking has taken a nosedive. It dropped from its usual spot in the top three or four positions in just three days to a staggering 58th!
The implications are notable, as Temu’s impression share has vanished from advertiser auction data. This shift could temporarily lower digital advertising costs for other e-commerce businesses.
Still, it also serves as a wake-up call. The situation illustrates how precarious dependency on aggressive advertising can be, especially when external factors like trade policies come into play.
