The news: A bidding war between Shein and Temu drove up Black Friday costs-per-click (CPC) on key search terms, per Reuters.

• Semrush data cited by Reuters found that Temu and Shein were buying Google ad space on search terms like “Walmart Black Friday,” “Bed Bath Beyond,” “Walmart Clothes,” and other key terms with major competing brands in hopes of targeting consumers during the Cyber Five.
• CPCs on “Walmart Clothes” increased 16 times from August 2022 to August 2024.

Temu and Shein’s strategy: The two Chinese retailers are fiercely competing while also trying to drive a lucrative holiday shopping season ahead of political changes that could significantly alter their US businesses.

• The incoming Trump administration has proposed increasing tariffs on Chinese imports by 10%. The change would significantly boost shipping costs for the retailers and could cause US inflation to spike, limiting consumer buying power and the ability to keep prices low.
• Temu is taking some steps to insulate itself from changes. The company recently opened its marketplace to US merchants, removing its invite-only requirement in the hopes of decreasing its reliance on imported goods.

Where is spending going? The Black Friday bidding war has driven up ad prices, mirroring the dynamics of political ads on social media and TV earlier this year. For brands that are unwilling or unable to keep up with prices, other options present opportunities.

• The frenzy over high-search volume ad space may generate Black Friday sales, but it might not create loyal customers. Some companies like British retailer Asos have opted to focus on loyalty programs instead in the hopes of driving recurring sales.
• Others have been pulled to Meta platforms and TikTok, leaning on their large audiences and shoppable commerce features instead. Influencer and affiliate marketing are also valuable channels, though ROI can be harder to determine—an increasingly important metric during high-sales volume events like the Cyber Five.

This article is part of EMARKETER’s client-only subscription Briefings—daily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong and start 2025 off on the right foot, articles like this one—delivering the latest news and insights—are completely free through January 31, 2025. If you want to learn how to get insights like these delivered to your inbox every day and get access to our data-driven forecasts, reports, and industry benchmarks, schedule a demo with our sales team.