Temu pulls its U.S. Google Shopping ads
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The crash of its App Store rank reveals how heavily Temu was reliant on Google advertising for paid acquisiton.
Temu completely shut off Google Shopping ads in the U.S. on April 9, with its App Store ranking subsequently plummeting from a typical third or fourth position to 58th in just three days.
The company’s impression share, which measures how often their ads appear compared to eligibility, dropped sharply before disappearing completely from advertiser auction data by April 12.
The timing coincided with the Trump administration’s hardened stance on Chinese imports, raising tariffs to 125% while maintaining a more moderate approach to other trading partners.
First seen. Mike Ryan, head of ecommerce insights at Smarter Ecommerce, shared this news on LinkedIn:
Between the lines. Temu’s business model relied on heavily subsidized orders from parent company PDD to drive market share growth, despite operating at a loss on individual sales.
- New tariffs, combined with crackdowns on “de minimis” import loopholes, have severely undermined Temu’s direct-from-manufacturer approach.
- The company’s inability to maintain app performance without advertising for even a single day demonstrates the fragility of its market position.
Why we care. Ecommerce advertisers may experience temporary relief in digital advertising costs as Temu’s aggressive spending vanishes from auction platforms. Similar rapid market exits (e.g., Amazon during early pandemic lockdowns) led to drops in cost-per-click metrics. Some reduction in CPM rates is expected, potentially lowering both CPC and cost-per-conversion for remaining advertisers.
Tariffs. The underlying causes of Temu’s retreat (tariffs and import restrictions) could ultimately prove more damaging to the ecommerce landscape, particularly for small and medium-sized businesses.
Bottom line. Unlike failed competitor Wish.com, Temu’s parent company remains fundamentally sound. With U.S. trade policy still in flux and facing internal opposition even within the administration, Temu’s retreat may not be permanent.
About the author
Anu Adegbola has been Paid Media Editor of Search Engine Land since 2024. She covers paid search, paid social, retail media, video and more.
In 2008, Anu’s career started with delivering digital marketing campaigns (mostly but not exclusively Paid Search) by building strategies, maximising ROI, automating repetitive processes and bringing efficiency from every part of marketing departments through inspiring leadership both on agency, client and marketing tech side.
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