Temu vs Shein: Inside Their Massive Facebook Ad Spend Strategies

In the ever-evolving world of digital marketing, few players have shaken up the e-commerce advertising space quite like Temu and Shein. These two online retail giants have not only disrupted traditional retail models but have also redefined how brands use platforms like Facebook and Instagram to acquire customers at scale. Their aggressive ad strategies, especially on Meta’s advertising network, have become case studies in modern growth hacking.

If you’ve ever wondered how much these companies invest in Facebook ads, what strategies they deploy, and how their moves affect the broader digital ecosystem, this blog post breaks it all down.

The Rise of E-commerce Giants: Temu and Shein

Over the last few years, Temu and Shein have emerged as dominant forces in global e-commerce. With their affordable pricing, viral marketing, and fast shipping, both platforms have gained millions of users—particularly among Gen Z and millennial shoppers.

  • Temu, owned by Chinese conglomerate PDD Holdings, launched in the U.S. in late 2022 and has rapidly expanded to Europe and other markets.

  • Shein, founded in 2008, has long dominated the fast fashion space and is now eyeing a broader lifestyle and multi-brand platform approach.

Both companies rely heavily on paid advertising, particularly on social media platforms like Facebook and Instagram, to acquire new users, drive app downloads, and retarget previous visitors.

How Much Do Temu and Shein Spend on Facebook Ads?

The numbers are staggering.

  • In 2023, Temu spent a massive $2 billion on Meta ads (which includes Facebook and Instagram), making it the largest advertiser on Meta’s platform that year.

  • In contrast, Shein spent approximately $1.5 billion on advertising across various platforms, with a significant portion allocated to Facebook advertising.

These figures show that both brands are willing to spend heavily to dominate visibility, increase market share, and outbid competitors in the attention economy.

Breakdown of Temu’s Digital Advertising Strategy

Temu’s marketing strategy is a masterclass in high-volume, aggressive acquisition. Here’s how they do it:

1. Platform Preference

Temu favors Meta’s ad platform (Facebook and Instagram) because of its deep targeting capabilities and wide global reach. With detailed audience segmentation and behavioral targeting, Temu can target users based on interests, demographics, and browsing behavior.

2. Creative Rotation

Temu constantly refreshes its ad creatives to combat ad fatigue. Users frequently see multiple versions of Temu’s promotions, featuring irresistible discounts, free shipping, and gamified app experiences.

3. App Install Campaigns

Temu heavily invests in app install campaigns, driving users to download its app where repeat purchases and push notifications increase customer lifetime value (CLV).

4. Performance Tracking

Temu uses AI-driven optimization to adjust ad spend in real-time, ensuring the best possible cost per acquisition (CPA) and return on ad spend (ROAS).

5. US Market Spend

Estimates suggest Temu spent over $3 billion on U.S. marketing in 2023 alone, most of it on digital platforms—with Facebook leading the charge.

Inside Shein’s Advertising Approach

Shein’s advertising is more refined and fashion-focused, but no less powerful. Here’s how they structure their Facebook ad strategy:

1. User-Generated Content (UGC)

Shein excels at leveraging influencer marketing and user-generated content. Its Facebook and Instagram feeds are full of real users styling Shein products, making the content relatable and engaging.

2. Dynamic Product Ads

Using Facebook’s dynamic ad functionality, Shein can automatically showcase products users have browsed or added to cart, dramatically improving conversion rates.

3. Segmentation by Style and Season

Shein’s massive product catalog allows them to segment ads by trending styles, occasions, and seasonal collections, targeting specific subcultures and niches.

4. Retargeting and Lookalike Audiences

Like Temu, Shein uses pixel tracking to retarget visitors and build lookalike audiences, helping them reach new users who resemble their most profitable customers.

The Impact of U.S. Tariffs on Their Ad Budgets

In April 2025, both Temu and Shein dramatically reduced their U.S. ad spending due to rising tensions over Chinese imports and looming tariffs. Here’s what happened:

  • Temu slashed its daily U.S. ad spend by 31% across Facebook, Instagram, TikTok, Snap, and YouTube.

  • Shein reduced its daily U.S. ad spend by 19% on Facebook, Instagram, TikTok, Pinterest, and YouTube.

These budget cuts signal a potential recalibration of strategy as the companies adapt to higher import costs and regulatory scrutiny. In the short term, it could lead to a drop in ad competitiveness, giving smaller brands more breathing room.

What This Means for the Digital Advertising Landscape

The massive ad investments by Temu and Shein have reshaped Facebook’s ad ecosystem in several ways:

1. Increased Ad Costs

The bidding war created by high-volume advertisers has driven up cost per click (CPC) and cost per thousand impressions (CPM) for everyone on the platform.

2. Content Arms Race

More brands are now investing in video content, reels, and interactive ads just to stand out in newsfeeds saturated with Temu and Shein promotions.

3. AI-Driven Optimization

Temu and Shein’s AI-powered ad management has pushed the industry toward more data-driven, automated advertising strategies.

How Smaller Brands Can Compete in a Space Dominated by Giants

Feeling overshadowed by multi-billion-dollar advertisers? Here’s how small to mid-sized businesses can still win on Facebook:

1. Focus on Local and Niche Markets

Unlike global e-commerce players, you can laser-focus on geographically relevant or niche audiences that the big brands ignore.

2. Leverage Authenticity

Use your story, team, and customer testimonials in your Facebook ads to build emotional connection—something Temu and Shein struggle with.

3. Maximize ROAS with Retargeting

Use Facebook Pixel and retargeting strategies to stay top-of-mind with interested users. Small budgets can go a long way here.

4. Experiment with UGC and Reels

Short-form videos and UGC continue to drive engagement. You don’t need a studio—just a smartphone and a compelling message.

5. Embrace Omnichannel

Don’t rely solely on Facebook. Combine your campaigns with email marketing, Google Ads, and influencer partnerships to reduce risk and increase reach.

Final Thoughts: Future Trends in E-commerce Advertising

The battle between Temu vs. Shein is far from over. As they continue to pour billions into digital ads, the Facebook advertising landscape will keep evolving. Expect to see:

  • Greater reliance on AI and machine learning for ad optimization

  • A growing emphasis on personalization and interactive content

  • Regulatory shifts that may impact international ad strategies

For brands and marketers, staying agile, niche-focused, and authentic remains the best way to thrive in an increasingly crowded digital ad space.