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Temu, the e-commerce app run by Chinese language firm PDD Holdings, plans to run a Tremendous Bowl advert on Sunday, a spokesperson informed CNBC, because it appears to proceed rising quickly in the USA.
It is uncommon for a Chinese language agency to purchase a Tremendous Bowl advert spot, which prices tens of millions of {dollars}. However this can be Temu’s second advert on the soccer occasion — it ran its first industrial final yr, underscoring how aggressively its father or mother firm PDD is attempting to crack the U.S. market.
Along with the industrial, Temu can be gifting away $5 million in coupons and credit, an initiative already underway. On the day of the Tremendous Bowl, Temu plans to do a further $10 million in giveaways, the spokesperson stated.
The spokesperson supplied no extra particulars on the contents of the advert or the worth paid for the spot.
Temu launched in September 2022 and shortly after aired its Tremendous Bowl advert in 2023. That industrial incorporates a younger lady amazed on the low-cost costs on clothes and niknaks that Temu has to supply.
“The costs blow my thoughts. I really feel so wealthy. I really feel like a billionaire. I am buying like a billionaire,” goes the advert’s jingle.
In a survey of 150 individuals carried out by market analysis agency Zappi, 51% stated they “beloved” final yr’s advert, giving it a rating of eight or extra on a 10-point scale. That quantity is in step with the common of different adverts that Zappi carried out surveys for. Nonetheless, 21% of respondents “hated” the advert, giving it a rating of 4 or much less on the identical scale. That is considerably above the common, Zappi stated. A couple of in three (34%) of viewers discovered the claims made within the advert to not be plausible.
Nonetheless, Temu is continuous to spend massive on advertising to purchase customers by way of platforms like Fb. Temu’s U.S. advert spend elevated 318% and 101% yr on yr within the fourth quarter of 2023 on Meta-owned Fb and Instagram, respectively, based on information from Sensor Tower.
And that spending has paid off. Sensor Tower stated Temu was the No. 1 most-downloaded app within the U.S. final yr. Temu’s month-to-month energetic customers reached 51 million in January, up practically 300% yr on yr.
Temu’s problem now’s to retain these customers and enhance its share of the U.S. e-commerce market because it appears to tackle gamers like Amazon.
Morgan Stanley stated in a be aware to shoppers final month that based on its survey, the variety of households buying on Temu was 20% decrease in January than in September. The funding financial institution additionally stated any U.S. share features in 2024 will seemingly be “modest” and that progress “could also be extra reliant on capturing a better share of its current customers’ wallets.”
