Temu and Shein, major e-commerce players, have drastically cut digital ad spending due to potential US trade policy changes, impacting affiliate marketers and the broader digital marketing landscape.
Key Takeaways:
- Temu and Shein reduce digital ad spend amid US trade policy uncertainty
- Section 321 rule revision threatens low-cost shipping model from China
- Affiliate marketers face revenue challenges as e-commerce giants pull back
E-commerce Giants Slash Ad Budgets
Performance marketers are witnessing a significant drop in ad placements from Temu and Shein across major platforms. This sudden shift is attributed to the potential revision of the Section 321 rule, which currently allows packages under $800 to enter the US duty-free.
The Section 321 Dilemma
The Trump administration’s move to revisit this rule poses a threat to the ultra-low-cost delivery model that Temu and Shein have relied on. This change could drastically alter the economics of their free shipping strategy, forcing a reevaluation of their growth tactics.
Impact on Affiliate Marketing
For casino affiliate marketers and others in the performance marketing space, this development serves as a cautionary tale. Many affiliates have benefited from Temu and Shein’s aggressive campaigns, enjoying high conversion rates and fast commissions. The current pullback highlights the risks of over-reliance on a single advertiser, especially in volatile regulatory environments.
Opportunities Amid Uncertainty
As these e-commerce giants step back, other advertisers may find opportunities to compete on visibility. For casino affiliates, this could mean lower CPCs and a chance to promote offers from operators with more stable regulatory footing.
Future Outlook
While Temu and Shein are unlikely to disappear, their business model is under pressure. Governments are scrutinizing trade loopholes and supply chain transparency, which could lead to long-term changes in their operations and marketing strategies.
Lessons for Casino Affiliates
This situation underscores the importance of diversification for affiliate marketers, including those in the casino industry. As geopolitics and policy increasingly shape digital marketing outcomes, affiliates must adapt their strategies to navigate uncertain regulatory landscapes.
The Temu and Shein case serves as a reminder that even in the fast-paced world of online gambling and affiliate marketing, external factors can quickly reshape the playing field. Casino affiliates should take note and prepare for similar shifts in their own verticals.
