China e-commerce player Temu is about to run its second Super Bowl ad — and do $10 million in giveaways

China e-commerce player Temu is about to run its second Super Bowl ad — and do $10 million in giveaways

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Temu, the e-commerce app run by Chinese firm PDD Holdings, plans to run a Super Bowl ad on Sunday, a spokesperson informed CNBC, because it appears to be like to proceed rising quickly in the United States.

It’s uncommon for a Chinese agency to purchase a Super Bowl ad spot, which costs millions of dollars. But this shall be Temu’s second ad on the soccer occasion — it ran its first business final yr, underscoring how aggressively its mother or father firm PDD is making an attempt to crack the U.S. market.

In addition to the business, Temu shall be giving freely $5 million in coupons and credit, an initiative already underway. On the day of the Super Bowl, Temu plans to do an extra $10 million in giveaways, the spokesperson mentioned.

The spokesperson supplied no extra particulars on the contents of the ad or the value paid for the spot.

Temu launched in September 2022 and shortly after aired its Super Bowl ad in 2023. That business encompasses a younger girl amazed on the low-cost costs on clothes and equipment that Temu has to supply.

“The costs blow my thoughts. I really feel so wealthy. I really feel like a billionaire. I’m purchasing like a billionaire,” goes the ad’s jingle.

In a survey of 150 folks carried out by market analysis agency Zappi, 51% mentioned they “liked” final yr’s ad, giving it a rating of eight or extra on a 10-point scale. That quantity is in line with the typical of different adverts that Zappi carried out surveys for. However, 21% of respondents “hated” the ad, giving it a rating of 4 or much less on the identical scale. That’s considerably above the typical, Zappi mentioned. More than one in three (34%) of viewers discovered the claims made in the ad not to be plausible.

Still, Temu is persevering with to spend massive on advertising and marketing to acquire users via platforms like Facebook. Temu’s U.S. ad spend elevated 318% and 101% yr on yr in the fourth quarter of 2023 on Meta-owned Facebook and Instagram, respectively, in accordance to information from Sensor Tower.

And that spending has paid off. Sensor Tower mentioned Temu was the No. 1 most-downloaded app in 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 is to retain these customers and enhance its share of the U.S. e-commerce market because it appears to be like to tackle gamers like Amazon.

Morgan Stanley mentioned in a word to shoppers final month that in accordance to its survey, the variety of households purchasing on Temu was 20% decrease in January than in September. The funding financial institution additionally mentioned any U.S. share features in 2024 will doubtless be “modest” and that development “could also be extra reliant on capturing the next share of its present customers’ wallets.”

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