Sopa Pictures | Lightrocket | Getty Illustrations or photos
Temu, the e-commerce app operate by Chinese firm PDD Holdings, ideas to operate a Tremendous Bowl ad on Sunday, a spokesperson told CNBC, as it seems to be to proceed expanding swiftly in the United States.
It’s uncommon for a Chinese business to buy a Super Bowl advertisement location, which expenses thousands and thousands of dollars. But this will be Temu’s second advertisement at the football occasion — it ran its 1st business previous calendar year, underscoring how aggressively its dad or mum enterprise PDD is seeking to crack the U.S. marketplace.
In addition to the professional, Temu will be offering away $5 million in coupon codes and credits, an initiative currently underway. On the day of the Super Bowl, Temu ideas to do an extra $10 million in giveaways, the spokesperson reported.
The spokesperson available no a lot more aspects on the contents of the advert or the selling price paid for the location.
Temu introduced in September 2022 and soon immediately after aired its Super Bowl advertisement in 2023. That commercial attributes a young woman shocked at the inexpensive selling prices on clothing and accessories that Temu has to present.
“The charges blow my intellect. I truly feel so loaded. I really feel like a billionaire. I am shopping like a billionaire,” goes the ad’s jingle.
In a survey of 150 people today carried out by marketplace analysis organization Zappi, 51% reported they “beloved” very last year’s advertisement, offering it a rating of eight or far more on a 10-point scale. That number is in line with the typical of other ads that Zappi performed surveys for. Nonetheless, 21% of respondents “hated” the ad, providing it a rating of four or less on the exact scale. That is significantly above the typical, Zappi reported. More than one in three (34%) of viewers located the promises made in the ad not to be plausible.
Even now, Temu is continuing to expend major on promoting to obtain buyers by way of platforms like Facebook. Temu’s U.S. advert spend elevated 318% and 101% yr on 12 months in the fourth quarter of 2023 on Meta-owned Facebook and Instagram, respectively, in accordance to details from Sensor Tower.
And that investing has paid out off. Sensor Tower claimed Temu was the No. 1 most-downloaded application in the U.S. very last yr. Temu’s regular monthly active customers achieved 51 million in January, up almost 300% calendar year on year.
Temu’s problem now is to keep these consumers and boost its share of the U.S. e-commerce marketplace as it appears to get on gamers like Amazon.
Morgan Stanley claimed in a note to clients past thirty day period that according to its study, the quantity of households shopping on Temu was 20% lessen in January than in September. The expense financial institution also stated any U.S. share gains in 2024 will possible be “modest” and that progress “could be additional reliant on capturing a higher share of its existing shoppers’ wallets.”