Heavy online marketing by Temu and Shein is making Black Friday advertising more expensive for retailers, with both platforms aggressively bidding on competitors’ search keywords, experts say. This strategy is reshaping digital marketing dynamics, increasing costs for brands relying on paid search ads.
Search engines charge more for ads when demand for certain keywords rises—a metric called “cost per click” (CPC). Temu has bid on terms like “Walmart Black Friday deals” and “Kohls Black Friday,” while Shein targets phrases like “Zara jeans” and “Nordstrom Rack shoes.” The CPC for “Walmart clothes,” for example, surged 16 times from 2022 to 2024, according to data from Semrush.
“It’s brutal out there,” said Erik Lautier of AlixPartners, noting that higher CPCs can reduce the return on marketing investments, potentially making paid search ads unprofitable. For some retailers, these ads generate up to 30% of online sales and can account for half of their marketing budgets.
The rising costs are pushing brands to explore alternatives like social media, influencers, and traditional ads. “Many are shifting focus to attract high-value, loyal customers instead of chasing low-margin, price-sensitive shoppers,” said Erin Brookes of Alvarez & Marsal.
While Temu claims it avoids directly targeting competitor brands, instances of automated keyword inclusion occasionally occur. Shein has not commented on its strategy.
This shift underscores the intensifying competition in the fast fashion and retail markets, forcing traditional retailers to rethink how they engage customers this holiday season.