The curious case of Temu's rise & more ecommerce insights

This year is off to a rocky start already, isn't it?

First, there's the unprecedented rise of Temu , which has sent shockwaves through the industry with its astonishing ad spend tsunami. Its aggressive marketing strategy is reshaping the landscape of digital advertising, with unprecedented implications for market sustainability and competitive strategies.

Then, of course, the EU's Digital Markets Act (DMA) looms large. With the potential to disrupt Performance Max (PMax) campaigns campaigns and altering the digital marketing playbook at a larger scale than seen before.

?? The curious case of Temu's rise

Temu's ascent in the ecommerce landscape is a story of strategic advertising and market disruption. With a staggering 1,000% increase in ad spend year-over-year for the period from January to November 2023, Temu's strategy is one of the most remarkable in recent ecommerce history. For example, a simple search for "buy lego" will return more Google Shopping results for Temu than it will for Lego.

This exponential increase in advertising investment challenges the status quo of advertising budgets and efficiency.

It also makes us wonder how smaller players can remain competitive. Particularly with retailers in the EU, where big changes to PMax's foundation loom on the horizon …

???? What the DMA means for PMax

The upcoming Digital Markets Act (DMA), effective March 6, 2024, introduces a critical change in the EU's digital services landscape. This change particularly affects Performance Max (PMax) campaigns, where the DMA's provisions on linking and unlinking services like Google Search, YouTube, and Google Shopping will significantly influence data sharing and personalization strategies.

It's safe to assume the tech giant might make the process of keeping services linked more appealing. Possibly by emphasizing integrated functionalities and downplaying the advertising aspect.

However, for unlinked users, this change could have significant implications for their ad strategies. With a potential worst-case-scenario of breaking Performance Max entirely.

?? Join our webinar:

A CMO's ecommerce playbook - What's in and what's out in 2024

These are only two of the topics we'll be covering in our upcoming webinar. Join us as we dig deep into the trends and challenges that will shape 2024 ecommerce:

• over two dozen pairs of what’s in and what’s out, covering key areas of your business.
• a crash course on cookie deprecation and how this changes measurement.
• a look at the power struggle between Chinese and Western ecommerce.
• the impact of gen AI on creatives, feed-based ads, and a cambrian explosion of martech.
• behaviorial trends around consumption in the age of fast fashion and even faster inflation.

?? Save the date: 2024-01-24 | 4 PM CET

Whether you're a seasoned CMO or an emerging ecommerce player, this webinar is your ticket to understanding the intricate tapestry of modern online marketing.

?? Secure Your Spot

REGISTER NOW.

Don't miss this opportunity to gain a competitive edge in the dynamic world of ecommerce. Join us as we explore the depths of online retail strategy and beyond.

?? We can't wait to hear YOUR unique ecommerce insights during the Q&A session!

Secure your spot!