A 12 months after making its promoting debut on the Tremendous Bowl, Chinese language-backed on-line purchasing platform Temu is redoubling efforts in its most necessary 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 advertisements throughout 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 12 months’s sport, with a variety of $6.5 million to $7 million per 30-second spot broadcast on TV channel CBS, two people accustomed to this 12 months’s promoting gross sales informed CNN.
With a tagline urging shoppers to “store like a billionaire,” Temu’s ad options an animated shopper dancing her approach by means of bargains starting from 99 cents to $9.99 in value.
“The business marks the spotlight of a Tremendous Bowl marketing campaign that featured greater than $15 million in coupons and giveaways,” Temu stated in a press release.
A give attention to quickly gaining market share, with much less concern for revenue margins, that’s central to Temu’s technique has beforehand labored out effectively for retail giants Amazon (AMZN) and Wayfair (W), in keeping with Seema Shah, vice chairman 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 development,” Shah stated. “Given the scale of its mother or father 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 the US in September 2022, a couple of months earlier than earlier than its first ad on the Tremendous Bowl, and has since expanded to greater than 15 international locations, together with the UK, Mexico, Germany and Australia. Sensor Tower says Temu’s app was the eighth-most downloaded globally final 12 months and primary in the US.
The information firm informed CNN that Temu had “utterly captivated shoppers over the course of final 12 months,” racking up 51 million month-to-month energetic customers in January alone, up practically 300% from 13 million in the identical month final 12 months. 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 look like paying off. Earnest Analytics says the upstart has “shaken up” America’s low cost gross sales business by attracting customers from Greenback Common (DG) and Greenback Tree (DLTR).
Temu’s success can be seen as a significant factor within the current rally within the inventory of its mother or father PDD, which doesn’t escape the earnings of its worldwide enterprise. PDD reported blockbuster third-quarter earnings in November, smashing analyst expectations.
Consequently, 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 referred to as for “change” at his firm.