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Temu, the e-commerce app run by Chinese business PDD Holdings, prepares to run a Super Bowl advertisement on Sunday, a representative informed CNBC, as it seeks to continue proliferating in the United States.
It’s uncommon for a Chinese company to purchase a Super Bowl advertisement area, which costs countless dollars However this will be Temu’s 2nd advertisement at the football occasion– it ran its very first business in 2015, highlighting how strongly its moms and dad business PDD is attempting to split the U.S. market.
In addition to the business, Temu will be handing out $5 million in vouchers and credits, an effort currently underway. On the day of the Super Bowl, Temu prepares to do an extra $10 million in free gifts, the representative stated.
The representative used say goodbye to information on the contents of the advertisement or the rate spent for the area.
Temu introduced in September 2022 and quickly after aired its Super Bowl advertisement in 2023 That business functions a girl astonished at the inexpensive costs on clothes and devices that Temu needs to provide.
” The costs blow my mind. I feel so abundant. I seem like a billionaire. I’m going shopping like a billionaire,” goes the advertisement’s jingle.
In a study of 150 individuals performed by marketing research company Zappi, 51% stated they “liked” in 2015’s advertisement, offering it a rating of 8 or more on a 10-point scale. That number remains in line with the average of other advertisements that Zappi performed studies for. Nevertheless, 21% of participants “disliked” the advertisement, offering it a rating of 4 or less on the exact same scale. That’s substantially above the average, Zappi stated. More than one in 3 (34%) of audiences discovered the claims made in the advertisement not to be credible.
Still, Temu is continuing to invest huge on marketing to acquire users by means of platforms like Facebook Temu’s U.S. advertisement invest increased 318% and 101% year on year in the 4th quarter of 2023 on Meta– owned Facebook and Instagram, respectively, according to information from Sensing unit Tower.
Which costs has actually settled. Sensing unit Tower stated Temu was the No. 1 most-downloaded app in the U.S. in 2015. Temu’s month-to-month active users reached 51 million in January, up almost 300% year on year.
Temu’s obstacle now is to keep those users and increase its share of the U.S. e-commerce market as it seeks to handle gamers like Amazon.
Morgan Stanley stated in a note to customers last month that according to its study, the variety of homes going shopping on Temu was 20% lower in January than in September. The financial investment bank likewise stated any U.S. share gains in 2024 will likely be “modest” which development “might be more dependent on recording a greater share of its existing buyers’ wallets.”