Hermann pointed out other critical factors that could further impact ad inventory. “For 2024, on top of Temu and Shein, we have a presidential election coming. If we think things are high now, it may go even higher.”
In regards to whether or not this type of media saturation is a trend to be concerned about, Hermann doesn’t think so. “Platforms like Temu come along every so often. Wish was the first. Temu is the first company, to my knowledge, to be spending this aggressively. However, is Meta still able to work for the majority of advertisers as a profitable choice of traffic? I still believe so, but it’s not easy and I feel for those in direct competition with a site like Temu.”
With such lofty ad spend, it’s easy to see why companies might be concerned that Meta will play favorites and continue to ensure that Temu spends with them.
Only time will tell as media buyers start work each day ready to fight the tough fight.
