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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 aims 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. But this will be Temu’s 2nd advertisement at the football occasion– it ran its very first industrial in 2015, highlighting how strongly its moms and dad business PDD is attempting to split the U.S. market.
In addition to the industrial, 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 provided say goodbye to information on the contents of the advertisement or the rate spent for the area.
Temu released in September 2022 and soon after aired its Super Bowl advertisement in2023 That industrial functions a girl impressed at the inexpensive rates on clothes and devices that Temu needs to provide.
“The prices blow my mind. I feel so rich. I feel like a billionaire. I’m shopping like a billionaire,” goes the advertisement’s jingle.
In a study of 150 individuals performed by marketing research company Zappi, 51% stated they “loved” 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 carried out studies for. However, 21% of participants “hated” the advertisement, offering it a rating of 4 or less on the very same scale. That’s considerably 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 get users by means of platforms likeFacebook 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 Sensor Tower.
And that costs has actually settled. Sensor Tower stated Temu was theNo 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 aims to handle gamers likeAmazon
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 inSeptember The financial investment bank likewise stated any U.S. share gains in 2024 will likely be “modest” which development “may be more reliant on capturing a higher share of its existing shoppers’ wallets.”