Online marketplace Temu has seen a significant increase in its ad spend in an effort to attract shoppers. A recent study by MediaRadar revealed that Temu’s ad expenditure rose by 1000% from January to November 2023 compared to the same period in the previous year. For this period, the company allocated the majority of its ad budget (76%) to social media while digital display ads comprised just 13%.
The company has also increased funding for TV spots, planning to run an ad during the Super Bowl for the second consecutive year. Temu, established in the United States in September 2022, has seen success in penetrating the market with large sales volumes through its ubiquitous advertising.
Although it is a subsidiary of PDD Holdings, a China-based firm that doesn’t disclose sales figures by brand, PDD reported a 94% increase in total revenue in the last quarter. One downside to this aggressive advertising approach is its hefty price tag. Analysts at Goldman Sachs estimate that Temu spent approximately $1.2 billion on Meta in 2023.
The company’s strategy, which includes an influencer program and visibility in major events such as the Super Bowl, has made it a dominating presence in advertising, leading to a change in the dynamics of the ad landscape.
Source: I’ve never seen anything like this: Temus ad spend soars as it embarks on a marketing blitz
