📊 Temu's Growing Investment in Meta
- Since August 2022, Temu has increased its investment in Meta's platforms.
- Growth in ad spend on Meta is slowing down but still present.
- Temu and Shein spending almost $150M monthly on Meta.
📉 Decline in YouTube Spending
- Temu's investment in YouTube has decreased year-on-year.
- Temu spend on YouTube now around $7.5M vs $20M monthly in Q3 2023.
🔄 Strategic Marketing Changes
- Temu's focus is now on increasing existing user activity in the US.
- This shift aligns with Temu's strategy to move from broad user acquisition to enhancing existing user engagement.
- The change follows Pinduoduo's brand-building approach in China.
📈 Future Projections for Meta and YouTube
- Platforms aligning with Temu's current strategy, like Meta, benefit more now.
- Dolphin predicts a future shift to internal cash incentives and shopping subsidies.
- As Temu shifts to internal cash subsidies, Meta might face reduced ad spend similar to YouTube in Q2.
Will Temu's ad spend strategy impact its user engagement?
