Online superstore Temu is doubling down on the Super Bowl with a $15 million TV ad and giveaway
A year after its Super Bowl ad debuted, China-backed online shopping platform Temu is doubling down on its top markets with a second ad on America’s biggest stage and $15 million in coupons and other giveaways.
The Boston-based company – owned by PDD (PDD), the group behind Chinese online shopping giant Pinduoduo – Three ads were paid for during the game and two after the game. A company spokesperson declined to comment on overall ad spending.
The 2024 Super Bowl commercials are sold out Higher rates That compares with last year’s game, with a range of $6.5 million to $7 million per 30-second ad airing on CBS Television, two people familiar with this year’s ad sales told CNN.
With a slogan urging consumers to “Shop Like a Billionaire”, Timo’s announcement It features an animated shopper who dances her way through deals ranging in price from 99 cents to $9.99.
“This announcement represents the highlight of the Super Bowl campaign, which included coupons and giveaways worth more than $15 million,” Timo said in a statement.
The focus on gaining market share quickly, with less concern for profit margins, which is central to Temu’s strategy, has previously worked well for retail giants Amazon (Amzn) and Wayfair (W), according to Seema Shah, vice president of research and insights at market data company Sensor Tower.
“Temu’s value recognition, gamification of its app, increase in ad spend, wide assortment and close relationships with suppliers are what we believe is driving the company’s growth,” Shah said. “Given the size of the parent company, Temu is able to be very competitive in terms of pricing throughout the year and deliver products quickly, even as it expands into new geographies.”
The company launched in the US in September 2022, a few months before the launch First ad in the Super Bowl, and has since expanded to more than 15 countries, including the United Kingdom, Mexico, Germany and Australia. Sensor Tower says Temu was the eighth most downloaded app globally last year and first in the United States.
Temu has “completely captured consumers over the past year,” the data company told CNN, with monthly active users reaching 51 million in January alone, up nearly 300% from 13 million in the same month last year. Sensor Tower said it spent aggressively on advertising and was the second-biggest spender on Facebook during the last three months of 2024, second only to Amazon.
These efforts appear to be paying off. Earnest Analytics says the startup has “I was shaken» Discount sales industry in America by attracting shoppers from Dollar General (General Director(and the dollar tree)DLTR).
Temu’s success is also seen as a major factor in the recent rise in the shares of its parent company PDD, which is not outpacing the profits of its international venture. PDD mentioned Third-quarter earnings hit in November, crushing analysts’ expectations.
As a result, PDD’s market capitalization soared that month, outperforming older e-commerce competitor Alibaba (Baba) for the first time. In response, Alibaba co-founder Jack Ma called for “change” at his company.
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