Retail Rivals: How Shein and Temu Drive Up Black Friday Advertising Costs

Temu and Shein's aggressive online marketing tactics are increasing competition and costs for retailers seeking Black Friday shoppers. By outbidding competitors on keywords, they are disrupting search marketing dynamics. Rising costs prompt brands to explore alternative channels like social media and traditional advertising for effective customer engagement.

Temu and Shein are significantly impacting the online marketing landscape this Black Friday with their aggressive bidding strategies, making it more costly for other retailers to reach shoppers. Industry experts warn that these tactics are intensifying the competition by driving up costs for search keywords.

Shoppers often begin their Black Friday hunts by typing keywords into search engines, making this a key battleground for retailers. Companies like Temu and Shein have been bidding heavily against competitors, using targeted keywords to gain visibility. This has led to a dramatic increase in the costs associated with search engine advertising, known as 'cost per click'.

This aggressive approach is forcing some retailers to rethink their marketing strategies. With rising search costs, many are shifting their focus to platforms like Facebook and TikTok, as well as emphasizing influencer partnerships and traditional advertising. Retailers are seeking more strategic approaches to attract long-term, high-value customers rather than those solely motivated by price.

(With inputs from agencies.)