Temu has surged back to the top of Apple's App Store rankings in the U.S. after resuming its digital ad spending, which had been paused due to high tariffs on Chinese goods. In April, Temu reduced its ad spend significantly, losing its competitive edge in customer acquisition. However, with tariffs easing, Temu has increased advertising on major platforms like Meta and Google, resulting in a resurgence in app downloads and web traffic. Temu and competitor Shein are diversifying their sales efforts to include European markets with less stringent trade rules.
Temu, once stifled by tariffs, has surged back to the top of App Store rankings in the U.S. after resuming digital ad spending, which was previously halted. Daily visits to Temu.com are increasing following the brand's renewed advertising efforts.
Analyst Joe Kaziukėnas noted that the effectiveness of marketing diminished when the value proposition was lost, making customer acquisition futile during the tariffs crisis.
After a period of reduced advertisements, Temu ramped up its presence on platforms like Meta and Google, reinstating thousands of ads and contributing to a rebound in downloads.
Both Temu and Shein have pursued diversification in markets outside the U.S., targeting Europe amidst less stringent trade regulations, while navigating the challenges posed by high U.S. tariffs.
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