Temu dropped from 3rd to 58th in App Store rankings as soon as it completely stopped Google Shopping ads
On Wednesday, April 9, 2025,
Temu pulls its US Google Shopping ads
https://searchengineland.com/temu-pulls-us-google-shopping-ads-454260
Temu's US Ad Spend Craters Amid Escalating Trade War With China
https://www.adweek.com/media/temus-us-ad-spend-craters/
Mike Ryan, head of e-commerce insights at e-commerce solutions provider Smarter Ecommerce , reports that Temu will completely stop running shopping ads in the United States on April 9, 2025.
As a result, Temu's impression share plummeted, and by April 12th it had completely disappeared from advertiser auction data.
In the graph below, the horizontal axis shows time, and the vertical axis shows impression share on Google Shopping and ranking on the App Store. The black line shows impression share, and the blue line shows ranking on the App Store. It is clear that both impression share and ranking on the App Store plummeted after advertising stopped on April 9th.
'We first reported a high correlation between Temu's ad spend and app rankings in April 2024,' Ryan wrote. 'This is not surprising, given how many businesses rely on advertising. But in Temu's case, the relationship appears to have been very immediate and strong.'
Ryan added: 'It's long been known that Temu has been losing money on orders because its parent company heavily subsidizes it in exchange for growing market share. But the combination of tariffs and a crackdown on tiny import loopholes has effectively destroyed Temu's D2C model.'
'It's clear that Temu's business model relied on heavily subsidized orders from its parent company to drive market share growth despite losing money on individual sales,' said Search Engine Land , a search engine-related media outlet. 'Temu's inability to maintain app performance without ads for even a day speaks to the fragility of the company's market position.'
With Temu's active advertising disappearing from the auction platform, e-commerce advertisers may experience a temporary relief in their digital advertising spend. Indeed, when advertisers withdrew from the market en masse during the early days of the COVID-19 pandemic, there was a drop in cost-per-click (CPC). CPM rates are also expected to decline slightly, which could lead to a drop in both CPC and cost-per-conversion for remaining advertisers.
Temu's decision to stop advertising on Google Shopping coincides with the Trump administration's announcement that it would take a tough stance on Chinese imports, raising tariffs to 125%, while suspending reciprocal tariffs with other countries.
President Trump suspends reciprocal tariffs with more than 75 countries excluding China, NVIDIA shares rise 19% and IT industry stock prices rise across the board - GIGAZINE
Search Engine Land wrote, 'Temu's parent company remains on sound footing. U.S. trade policy remains in flux and Temu faces opposition within the administration, so Temu's withdrawal may not be permanent.'
In addition, on the social news media Hacker News , 'I loved Temu, AliExpress, and SHEIN. For years, I bought about one item a day on average. Most were small electronic parts or special tools for my workshop. If I had bought it on Amazon or a local store, it would have cost 10 times as much. It's over. People receiving packages in May will be charged $75 (about 10,700 yen) to $150 (about 21,000 yen) or more per item. Even a 75-cent (about 100 yen) envelope will cost an additional $75,' lamented the demise of the low-cost online shopping site, and 'In my experience, Temu sells the top 10% of the most popular products on AliExpress and uses a huge centralized fulfillment warehouse similar to Amazon's warehouse, which allows for faster and more reliable delivery,' commented , 'SHEIN and Temu Don't lump them together. My wife is an avid SHEIN user, and so far I feel the quality is worth the price. SHEIN is really just a wrapper for AliExpress, but they put a lot of effort into the accuracy of their clothing size charts, and their customer review system actively encourages buyers to upload photos of themselves wearing the clothes they buy, so potential buyers can actually see how the clothes look on someone with a body type similar to their own. Temu's impression, on the other hand, is that they try to be as misleading as possible in their listings , and therefore that they're not worth the price at all. I once bought a 6-foot Christmas tree for $20, and the tree I received was only 6 inches.
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in Software, Posted by logu_ii