What is the potential negative impact of using overly aggressive or frequent bidding tactics on Temu's advertising platform?

Overly aggressive bidding on Temu's advertising platform can lead to significantly increased advertising costs without a proportional increase in sales, resulting in a lower Return on Ad Spend (ROAS). Consistently bidding high amounts to outrank competitors inflates the cost per click (CPC), meaning you pay more for each customer who visits your listing. If these increased costs are not offset by a corresponding rise in conversion rates or order values, the overall profitability of the campaign decreases. Moreover, Temu's algorithm may penalize listings that consistently require high bids to maintain visibility, as it suggests a lack of organic relevance or inherent product appeal. For example, constantly bidding the maximum CPC for a 'women's dress' might guarantee top placement, but if the dress itself isn't compelling or the listing poorly optimized, the high advertising costs will erode profit margins, making the campaign unsustainable.