Hong Kong
CNN
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A yr after making its promoting debut on the Tremendous Bowl, Chinese language-backed on-line procuring platform Temu is redoubling efforts in its most essential market with a second advert on America’s greatest stage and $15 million in coupons and different giveaways.
The Boston-based agency — owned by PDD (PDD), the group behind Chinese online shopping giant Pinduoduo — paid for 3 adverts in the course of the sport and two after the sport. A spokesperson declined to touch upon the general promoting spend.
Commercials for the 2024 Tremendous Bowl bought for higher rates than for final yr’s sport, with a variety of $6.5 million to $7 million per 30-second spot broadcast on TV channel CBS, two people conversant in this yr’s promoting gross sales instructed CNN.
With a tagline urging customers to “store like a billionaire,” Temu’s ad options an animated shopper dancing her method by means of bargains starting from 99 cents to $9.99 in worth.
“The business marks the spotlight of a Tremendous Bowl marketing campaign that featured greater than $15 million in coupons and giveaways,” Temu stated in an announcement.
A concentrate on quickly gaining market share, with much less concern for revenue margins, that’s central to Temu’s technique has beforehand labored out properly for retail giants Amazon (AMZN) and Wayfair (W), in line with Seema Shah, vp of analysis and insights at market knowledge agency Sensor Tower.
“Temu’s worth positioning, the gamification of its app, the rise in advert spend, its huge assortment and its shut provider relationships are what we consider is driving the corporate’s progress,” Shah stated. “Given the scale of its dad or mum firm, Temu is ready to be extraordinarily price-competitive on a year-round foundation and ship merchandise rapidly, even because it expands in new geographies.”
The corporate launched in america in September 2022, a number of months earlier than earlier than its first ad on the Tremendous Bowl, and has since expanded to greater than 15 nations, together with the UK, Mexico, Germany and Australia. Sensor Tower says Temu’s app was the eighth-most downloaded globally final yr and primary in america.
The information firm instructed CNN that Temu had “utterly captivated customers over the course of final yr,” racking up 51 million month-to-month energetic customers in January alone, up almost 300% from 13 million in the identical month final yr. It has spent aggressively on promoting and was the second-biggest spender on Fb over the past three months of 2024, second solely to Amazon, Sensor Tower stated.
These efforts seem like paying off. Earnest Analytics says the upstart has “shaken up” America’s low cost gross sales trade by attracting consumers from Greenback Normal (DG) and Greenback Tree (DLTR).
Temu’s success can also be seen as a significant component within the latest rally within the inventory of its dad or mum PDD, which doesn’t escape the earnings of its worldwide enterprise. PDD reported blockbuster third-quarter earnings in November, smashing analyst expectations.
In consequence, PDD’s market capitalization soared that month, eclipsing that of older e-commerce rival Alibaba (BABA) for the primary time. In response, Alibaba’s co-founder Jack Ma known as for “change” at his firm.