Tariffs forced Temu to slash its U.S. ad spend on nearly every platform

June 03, 2026

Presented by

Tariffs dented Temu’s U.S. opportunity. Its ad spending has followed.

The Chinese e-commerce giant slashed its U.S. ad spend across nearly every major social media platform in 2026, according to data from Sensor Tower. It went from being X’s single largest advertiser between January to May 2025, to the 51st largest in the same time period this year, reducing by eight figures — or a 95% year-over-year slump — per the data.

TOP STORY

Marketing on Platforms

Tariffs forced Temu to slash its U.S. ad spend on nearly every platform

The Chinese e-commerce giant traded upper-funnel reach for high-intent shoppers — and still grew its user base.

OTHER THINGS TO KNOW

There’s still time to save. Get 35% off an annual Digiday+ membership. Offer extended—ends June 5.
The DSP is the control panel of modern advertising. It determines what runs, where, how often and how success is defined. If ACR data sits outside the DSP, value leaks at every step. Partner insights from Nexxen.
Shifting sports rights to streamers has made regional and local sports that much more valuable because fragmentation makes it much harder for national buys alone to reach local fans effectively. Partner insights from DIRECTV Advertising.

A MESSAGE FROM BASIS

Why unified, AI-driven advertising is becoming essential

Today’s fragmented media landscape isn’t doing modern advertisers any favors, as siloed channel strategies create blind spots and affect results. Basis is helping marketers overcome this with Compass, an agentic AI solution that accelerates planning and activation across all channels, from the open web to walled gardens. And its SmartBid AI optimization technology analyzes dozens of live performance signals to make continuous, goal-aligned adjustments throughout campaigns, so advertisers see stronger results.

MEDIA & PLATFORMS

Member exclusive

Future of TV Briefing: How TV-streaming ad sellers are pitching fluidity in this year’s upfront market

This week’s Future of TV Briefing looks at how AMC Global Media, Disney, Paramount, TelevisaUnivision and Warner Bros. Discovery are combining their linear TV and streaming inventory for ad sales.

Zero-click Future

The case for and against publishers buying paid traffic

For many audience development teams, the question is no longer whether to buy traffic, but how far they can push it.

PARTNER INSIGHTS FROM APPSFLYER

Why mobile’s measurement playbook is the answer to web fragmentation

As cookies become less dependable, platforms operate inside their own measurement environments, and AI changes discovery, web signals are splintering. Mobile marketers have already learned to navigate fragmentation — their measurement playbook offers answers.

MARKETING

Experimental Channels

Why DSW and other brands are pivoting back to 'old' marketing tactics

Amid AI and digital saturation, DSW is shifting ad spend to real-life activations and traditional media to deepen customer connections.

Evolving Agencies

Overheard: Revisiting the K2 Report on media agency practices like rebates and principal media

The good news: more marketers have updated their media agency contracts; the bad news: not as many have updated the principal media verbiage and remain vulnerable to its use unwittingly.

PARTNER INSIGHTS FROM SEEDTAG

Richer contextual data in the bidstream helps agencies and publishers alike

As it becomes possible to interpret content in a more detailed way — including the intent, tone and emotional signals surrounding it — context begins to take on a more central role in how impressions are evaluated.

PARTNER INSIGHTS FROM CONTENTFUL

How marketers are using AI to stay human

Instead of experimentation, marketers are testing ideas fast and scaling what’s successful. By prioritizing AI that works alongside marketers, leaders are improving workflows, reducing burnout, ensuring consistency — all while maintaining the human component of their creative.