Brazil鈥檚 digital economy continues to thrive, driven by shifting advertising trends and increased social media usage. This report series explores key media consumption trends in Brazil in 2025.
The digital landscape in Europe is slowing, but opportunities for advertisers, brands, and retailers still exist. Knowing where to look to achieve the best outcomes will be paramount.
Latin America鈥檚 digital revolution is marching full steam ahead, with consumers spending more than a third of their day online. As social commerce and retail media propel the region鈥檚 digital economy to new heights, the runway for growth remains long.鈥�
The news: Temu鈥檚 foothold in the US is shrinking as the company pulls back sharply on advertising. Weekly sales slumped more than 25% YoY between May 11 and June 8, according to Bloomberg Second Measure.
Our take: Given the importance of the US market to Temu and its merchants, it鈥檚 possible that its current pause on US ad spending and shift to Europe is a temporary effort to regroup as it searches for a business model more resistant to tariffs and the end of de minimis. At the same time, the longer the pause goes on, the more ground it will cede to Shein and other competitors鈥攁nd the harder it will be to regain market share.
Even as ecommerce alcohol sales rise, physical stores continue to dominate the path to purchase. Nonalcoholic beverages and Dry January are also picking up steam.
On May 2, the Trump administration began slapping a 120% duty鈥攐r a flat $100 per item鈥攐n small parcels from China and Hong Kong. While that rate was later eased to a still-sizable 54% earlier this month, it triggered price hikes from Shein and Temu in the US that then resulted in sales falling at both platforms.
Shein spent 70% more YoY on ads in Europe in the first 12 days in May, per Sensor Tower data provided to the South China Morning Post, while Temu is also ramping up spending in markets like France. Our take: It will take some time for the full effects of the trade war to be felt by the Chinese economy, especially as companies rush to take advantage of the 90-day reduction in tariffs.