It is uncommon for a Chinese language agency to purchase a Tremendous Bowl advert spot, which prices tens of millions of {dollars}. However this will likely be Temu’s second advert on the soccer occasion — it ran its first business final yr, underscoring how aggressively its guardian firm PDD is attempting to crack the U.S. market.
Along with the business, Temu will likely be gifting away $5 million in coupons and credit, an initiative already underway. On the day of the Tremendous Bowl, Temu plans to do an extra $10 million in giveaways, the spokesperson stated.
Temu launched in September 2022 and shortly after aired its Tremendous Bowl advert in 2023. That business includes 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 according to the typical of different advertisements that Zappi performed 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 typical, Zappi stated. Multiple in three (34%) of viewers discovered the claims made within the advert to not be plausible.
Nonetheless, Temu is continuous to spend huge on advertising to amass 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, in line with 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 lively 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 seems to be to tackle gamers like Amazon.
Morgan Stanley stated in a notice to shoppers final month that in line with 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 positive aspects in 2024 will probably be “modest” and that development “could also be extra reliant on capturing the next share of its current consumers’ wallets.”
Unique information supply Credit score: www.cnbc.com
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