Black Friday Marketing Costs Surge as Temu and Shein Dominate Bidding
During this year’s Black Friday, the online marketing landscape is becoming increasingly competitive, particularly as Temu and Shein engage in aggressive spending to secure top search keywords. This surge in bidding has led to higher marketing costs for other retailers and brands trying to connect with shoppers as the holiday shopping season kicks off the day after Thanksgiving in the U.S.
As shoppers begin their online search for deals and gifts, retailers strive to ensure their products appear prominently in search results. To achieve a high ranking, they bid on specific keywords. When demand for a keyword rises, so does the cost per click (CPC) for related ads.
In recent data from Semrush, it was revealed that Temu is targeting phrases like “Walmart Black Friday deals,” “Kohls Black Friday,” and “Bed Bath & Beyond.” Similarly, Shein has focused on keywords such as “Walmart clothes,” “Zara jeans,” and “Nordstrom Rack shoes.” Notably, the CPC for "Walmart clothes" reportedly skyrocketed by 16 times between August 2022 and August 2024. Generic terms like "cheap clothes online" and "shopping" have also seen a significant rise in costs.
Erik Lautier, an expert in e-commerce from consultancy AlixPartners, commented on the challenging environment, stating, "It's brutal out there; it's really hard.” Increased costs per click can diminish the return on marketing investment, and for some retailers reliant on paid search ads, this could even turn unprofitable. Lautier noted that paid search advertising can drive between 15% to 30% of online sales and may occupy up to half of a retailer’s marketing budget.
