Latest news with #MarkBallard
The Guardian
17-04-2025
- Business
- The Guardian
Temu and Shein drop US ad spending as they face tariffs on even small sales
Temu and Shein are cutting back their spending on US social media advertising as they lose an exemption on tariffs for many of their shipments from China and Hong Kong. The online e-tailers, both of which ship low-priced China-made goods direct to US shoppers, had been on an ad spree until recently. But under an executive order from Donald Trump, as of 2 May their sales valued at under $800 will no longer be exempt from US tariffs. Temu and Shein plan to raise product prices next week as the removal of this 'de minimis' exemption increases their costs. They are cutting ad spending on most platforms, according to two digital marketing firms. Temu's daily average US ad spend on Facebook, Instagram, TikTok, Snap, X and YouTube declined a collective average of 31% in the two weeks from 31 March to 13 April compared with the previous 30 days, said Sensor Tower. Shein's daily average US ad spend on Facebook, Instagram, TikTok, YouTube and Pinterest fell a collective average of 19% over the same period. Mark Ballard, director of digital marketing research at Tinuiti, said Temu had sharply reduced ads on Google Shopping since 12 April. Meta declined to comment while Google, Shein and Temu were not immediately available for comment. With Reuters
Reuters
16-04-2025
- Business
- Reuters
Temu, Shein slash digital ads as tariffs end cheap shipping from China, data show
NEW YORK, April 16 (Reuters) - Chinese online marketplace (PDD.O), opens new tab Temu and fast-fashion retailer Shein, two of the biggest advertisers on U.S. social media, are sharply cutting their U.S. digital ad spending, industry data show, in a blow to tech companies such as Meta's Facebook (META.O), opens new tab and (GOOGL.O), opens new tab YouTube. The online retailers, both of which ship low-priced China-made goods direct to U.S. shoppers, had been on an ad spree until recently, targeting younger, thriftier shoppers in digital media. U.S. President Donald Trump's executive order earlier this month threatens this business. As of May 2, merchandise valued at under $800 shipped from China and Hong Kong will no longer be exempt from tariffs. Temu and Shein plan to raise product prices next week as the removal of this "de minimis" exemption on import tariffs increases costs for the companies. And they are cutting ad spending on most platforms, according to two digital marketing firms that measure ad spending. Temu's daily average U.S. ad spend on Facebook, Instagram, TikTok, Snap, X and YouTube declined a collective average of 31% in the two weeks from March 31 to April 13 compared with the previous 30 days, estimated Sensor Tower, which tracks such spending. Shein's daily average U.S. ad spend on Facebook, Instagram, TikTok, YouTube and Pinterest (PINS.N), opens new tab fell a collective average of 19% over the same period, it added. Meta declined to comment. Google, Shein and Temu were not immediately available for comment. Temu has sharply reduced ads on Google Shopping since April 12 after a marked ramp-up during the first quarter, said Mark Ballard, director of digital marketing research at Tinuiti.
