Let's unpack the insights:
Amazon's Sustained Dominance
🌟 Market Leader: Since Q4 2018, Amazon has been the top advertiser in Europe.
🎯 Consistent Competition: Competes with 70-80% of Google Ad Accounts.
🚧 Brief Hiccup: The only dip was a short advertising pause during the pandemic.
Wish's Brief Challenge to Amazon
📅 Initial Tests: Wish began testing Google Ads in 2019, then expanded massively in 2020.
💥 Rapid Decline: After reaching Amazon's competition level, Wish imploded in 2021.Temu's Rapid Rise
⚡ Sudden Impact: Since Q2 2023, Temu has made a significant entrance without a visible testing period.🏁 Quick Equalizer: Reached the same competitive level as Amazon within two quarters.
Signs of a Potential Shift
📉 Early Indications: Like Wish, Temu has started to show signs of slipping in Q1.
🔧 Strategic Adjustments: Even though it could look like Wish trajectory, as Temu model is different it is rather that Temu is testing higher marketing efficiency, operating with a modest budget, narrowing their product range, or pausing before a new push.
🛡️ Sturdy Model: Unlike Wish, Temu is supported by PDD Holdings, suggesting potential for sustained aggression due to large PDD coin coffins. Temu model comparing to Wish allows for more control in Pricing and control over inventory without risk of unsold items (as it is return to supplier)
