The development is creating a new market situation on the advertising platform. According to Adrelevance, the reduced presence of non-European players means that Swedish e-commerce companies have been able to increase their own impression shares without facing the same bidding competition as before. The reduced competition is also confirmed by Google, which in a comment to Adrelevance describes the current market situation in Google Shopping as an unusual one where higher demand meets lower competition within many product categories.
Karl Lindberg, CEO of Adrelevance, sees a changed behavior among global players and points out that many Swedish retailers have benefited from the shift over the past month.
It is highly interesting when major players make major strategic changes, especially when you can pick it up early. We have several customers who have strong results during July, says Karl Lindberg.
During the same period last year, a similar dynamic was noted in the search market, but then with a different player at the center. According to Karl Lindberg, the development for Amazon has looked different this year compared to last summer.
Last year at the end of July, Amazon withdrew from Google Shopping in Sweden, which had a major impact on the auction in the form of lower competition. This year we do not see that trend for Amazon, in some cases they have instead increased their presence, continues Karl Lindberg.
The decrease from Temu and Shein coincides in time with the EU abolishing the duty-free status for low-value shipments on July 1, which means that a customs duty of up to three euros per item has been added for orders from countries outside the union.
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Whether the reduced advertising presence is a permanent strategy or a temporary adjustment to the new customs rules is still unclear.
It remains to be seen how long Temu and Shein will continue as they do now, but for Swedish e-commerce companies it is currently a very interesting situation to see if they can take advantage of this opportunity. The best strategy is, as always, to follow the data very carefully and act on it, concludes Karl Lindberg.