蘑菇AV

The news: Ninety-four percent of marketers and agency execs are concerned about the impact of President Donald Trump鈥檚 tariffs on Canada, Mexico, China, and the EU, per IAB research鈥攊ncluding 57% who are 鈥渆xtremely concerned鈥� about the impact of tariffs. Almost half (45%) of advertisers are planning on reducing overall ad spend.

The US鈥� second-biggest ad market rallied in 2023 thanks to ad buyers in China and investments in automation paying off.

TikTok鈥檚 return to US app stores drove a 91% decline in downloads for RedNote, the rival Chinese social app that became the most downloaded free app on US app stores last month. RedNote is struggling to retain users despite maintaining a 25% higher daily active user count than before TikTok鈥檚 removal.

Tariffs on Chinese goods could hurt Google, Meta: Chinese retailers Temu and Shein are two of the companies鈥� top ad spenders.

Our take: The irony of ByteDance鈥檚 TikTok users flocking to Chinese-owned alternatives, including Lemon8, indicates they鈥檙e not concerned about an app鈥檚 perceived ties to Beijing or national security鈥攖wo key arguments driving the US government鈥檚 push for a TikTok ban.

Chinese retailers may cut ad spending under new tariffs: US tariff crackdown could impact Temu and Shein's ad investments, reshaping the digital ad market.

Temu could try appealing to inflation-weary consumers by introducing the gamified, group-buying grocery shopping concept that made sister app Pinduoduo enormously popular in China.

In China, ecommerce channel ad spending represents over 38% of total digital ad spending, and ecommerce search spending accounts for 64.0% of total search. Could the US figures reach similar heights?

China鈥檚 example would suggest that retail media has enormous headroom for growth in the US. Companies like Amazon have been growing their ad revenues by leaps and bounds, and yet ecommerce channel ad spending will still only represent 14.6% of the US digital ad market this year. In China, the share will be 38.1%.

Amazon and its sellers are highly dependent on goods from China. In addition to pushing up operating costs, that will mean price hikes for consumers鈥攕ome of which are already filtering through as third-party sellers take action.

Higher expenses and weakened demand could also curb seller ad spending, limiting Etsy鈥檚 revenue opportunities.

PDD's international expansion through Temu highlights its ambitions beyond China. While the company has diversified from its early reliance on advertising revenues, its ad business continues to thrive from what management calls "higher user engagement and more compelling advertising product offerings.".