Temu and Shein Are Cutting Ad Spend - The Hidden Impact on Your Campaigns

Both brands are slashing spend – Sensor Tower data shows Temu dropped U.S. ad budgets by 31% over just two weeks. Shein’s not far behind with a 19% cut. Those are not minor tweaks its more like hitting the brakes.

But honestly, the ad spend cuts are just the surface.

The bigger shift is the ripple effect this creates across platforms. Less Chinese e-commerce money flowing into Meta, TikTok, YouTube, etc., means auctions could loosen up. CPMs that have been creeping up for months might finally get a little breathing room.

Should you bank on it? Not really. If history tells us anything, platforms find new whales fast.

What’s smarter is treating this moment as a heads-up: direct-to-consumer strategies that depend on loopholes and low costs are fragile. If your margins rely on invisible subsidies (cheap shipping, hidden fees, free reach), you’re exposed.

Also, and this matters – customer acquisition costs for product-heavy brands could shift. If fewer ultra-cheap imported goods flood feeds, there’s slightly more air for brands that invest in real value instead of just low prices.

No, it won’t happen overnight. And no, this isn’t some giant “China retreats” story. Temu and Shein aren’t disappearing. They’re adapting. You should be too.