Temu and Shein's aggressive keyword bidding drives up search ad costs, impacting retailers this Black Friday. Rising "cost per click" pushes businesses to rethink strategies, shifting focus to social media, influencers, and high-value customer engagement.
Heavy online marketing investments by Temu and Shein are increasing costs for other retailers to reach shoppers during Black Friday, according to industry experts. Both platforms are aggressively bidding on search keywords, including those tied to competitors, to capture attention during the unofficial start of the holiday shopping season.
Retailers vie for prime placement in search results by bidding on keywords, but higher demand inflates the "cost per click," the fee charged per ad click.
Data from Semrush shows Temu bidding on terms like "Walmart Black Friday deals" and "Kohls Black Friday," while Shein targets phrases such as "Zara jeans" and "Mango dresses." As a result, the cost per click for terms like "Walmart clothes" has surged 16-fold between August 2022 and August 2024. Generic terms like "cheap clothes online" have also seen steep increases.
Ecommerce consultant Erik Lautier warns that rising costs reduce marketing returns and, in some cases, can render paid search ads unprofitable. These ads often drive 15-30% of online sales and can consume up to half of marketing budgets.
Shein and Temu stand out for bidding on a broader array of competitor keywords than is typical, said Olga Andrienko, Semrush's VP of brand marketing, describing their approach as "more aggressive."
A Temu spokesperson stated the company is committed to fair advertising practices and employs a "negative keyword list" to avoid targeting brand names, although automated processes may occasionally result in inadvertent targeting. Shein did not respond to inquiries.
The rising costs are prompting businesses to shift focus to channels like social media, influencers, and traditional ads. Erin Brookes of Alvarez & Marsal notes some brands are moving away from cost-driven customers and prioritising those with higher margins and loyalty.
British retailer Asos, for example, recently launched a loyalty programme and is investing in emotional engagement through cinema ads and influencer partnerships, according to its Chief Customer Officer, Dan Elton.
The U.S. said it struck Iranian radar sites on Qeshm Island and in Goruk after intercepting four drones, while Iran's Revolutionary Guards said they l...
Armenian authorities arrested six candidates from the pro-Russian Strong Armenia bloc on Saturday, one day before voters were due to take part in parl...
Ukrainian Deputy Prime Minister Oleksiy Kuleba said Russian forces attacked two civilian search and rescue vessels operating in Ukrainian waters on Sa...
In a workshop surrounded by the wreckage of war, workers in Gaza are giving a second life to small leisure boats once used for family outings and swim...
Five Azerbaijani crew members were killed, and three others were injured after two cargo vessels were hit in a drone attack in the Sea of Azov, Azerba...
Five Azerbaijani crew members were killed, and three others were injured after two cargo vessels were hit in a drone attack in the Sea of Azov, Azerbaijan's Foreign Ministry said on Friday, as Russia blamed Ukraine for the strike.
More than 6,000 people gathered outside a vote-counting centre in Seoul on Friday night, demanding this week’s local elections be repeated after ballot shortages left some voters unable to cast their ballots.
Armenian authorities arrested six candidates from the pro-Russian Strong Armenia bloc on Saturday, one day before voters were due to take part in parliamentary elections.
The new AnewZ documentary, TARGET: Yerevan, builds its explosive case on exclusive, secret recordings originally published by Minval Politika.
The U.S. said it struck Iranian radar sites on Qeshm Island and in Goruk after intercepting four drones, while Iran's Revolutionary Guards said they launches retaliatory strikes on four tankers in the Strait of Hormuz and targeted U.S. bases in the Gulf.
Chinese carmakers are rapidly reshaping the global automotive market, with record exports, soaring electric vehicle sales and growing investments overseas putting pressure on established European, Japanese and U.S. rivals.
The International Labour Organization (ILO) has begun its latest round of negotiations on creating the first binding global standards for platform-based work, covering services such as ride-hailing, food delivery and other app-based work.
European companies are continuing to deepen their presence in China, with nearly seven in ten firms maintaining or expanding their supply chains despite global efforts to diversify, according to a new survey by the EU Chamber of Commerce.
BP has removed its chair, Albert Manifold, with immediate effect, citing concerns over governance and conduct. The company said its board had unanimously decided that Manifold should no longer serve as chair or director.
The dual-class share structure outlined in SpaceX’s initial public offering (IPO) filing, which gives chief executive Elon Musk outsized control, has reignited one of Wall Street’s longest-running debates over corporate governance.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment