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Sensor Tower · Abraham Yousef · December 2023
Euro Black Friday Unveiled: Ad Strategies & Engagement
Due to economic challenges, retailers in Europe are expecting a subdued Black Friday and holiday shopping season in 2023. They are adjusting their advertising strategies by increasing ad spend and using terms to attract cost-conscious shoppers. The impact on mobile adoption and engagement has varied, with some retailers experiencing a decrease, while others like Temu, Shein, and AliExpress have seen significant YoY growth in DAUs.
Key Takeaways:
Black Friday 2023 saw a notable rise in advertising spending across Europe. The UK led the surge with a 40% YoY increase in ad spend during the week
Amazon emerged as the top shopping advertiser by ad spend across major European countries, recording a 248% YoY increase in ad spend across the UK, France, and Germany. Temu - which launched in 2Q23 in Europe - ranked consistently within the top three, highlighting its rapid growth, further evidenced by its mobile MAUs surpassing Shein in recent months
Black Friday 2023 marked a notable shift in UK retailers' advertising strategies. Temu’s first European Black Friday emphasized terms related to discounts and product quality, while online beauty retailer LookFantastic ramped up the use of terms suggesting an early Christmas strategy. Amazon, on the other hand, increased the use of terms such as 'fashion' and 'essentials' within the same ads, targeting cost-conscious fashionistas
To potentially boost consumer spending during Black Friday week, retailers upped their investment in ads with high discounts (40% and above), which increased from 47% of the total ad spend in 2022 to 64% in 2023
Ads offering over 80% discounts, for which Temu and Shein allocated a significant portion of their budgets, grew to 9% of the ad spend in 2023, marking a 2ppts rise YoY
Temu’s first Black Friday in Europe saw the PDD-backed platform garner over 100m impressions on its ads across the UK, France and Germany. In the UK, Temu’s Instagram ad spend showed high correlation with the app’s downloads and DAUs, indicating it might have been an effective channel for reaching its target audience
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