The shopping app, Temu, has recently made a grand entrance into the marketing world by erratically spending on advertisements. The company launched a high-impact ad campaign during the last Super Bowl, making a name for itself through a repetitive yet captivating arrangement. The company, owned by the Chinese e-commerce giant PDD Holdings, hasn’t hesitated to spend big on advertisements, with figures reaching up to $505 million last year – an astounding 1000% increase in its marketing budget.
Temu’s aggressive approach to marketing gained the company considerable recognition, particularly amongst older consumers. The free app is currently ranked as the most downloaded app post-Super Bowl, and the Ad intelligence platform, MediaRadar reported its ad outperformed the median ad by 1343% engagement. Despite the impressive numbers, Temu’s future performance and earning potential remains uncertain since the company traditionally does not publish its earnings.
Walmart, too, is excitedly expanding its operations. Recently, the large-format retailer announced its intention to acquire the smart TV maker, Vizio, at $2.3 billion. Riding on Vizio’s SmartCast Operating System’s success, Walmart aims at bringing the company into Walmart Connect, its U.S. media business. This arrangement is expected to create new opportunities for brands to connect with consumers in a revolutionary way. It is yet another stride in Walmart’s media and messaging capabilities expansion journey that started five years back.
The future of advertising lies in artificial intelligence (AI). recently, OpenAI, an AI research lab, unveiled Sora, a model that generates videos of a minute long from a simple text prompt. While the product is not available for public use yet, other companies, such as Google, Meta xAI, and Amazon, are reportedly developing similar platforms. However, again, no product has been publicly released yet.
Major players in the entertainment industry such as Disney, Warner Bros., and Fox have found a competitor in FuboTV, a sports streaming service. The company has recently filed a lawsuit against the three, accusing them of colluding to create a monopolistic sports streaming service. According to FuboTV CEO David Gandler, the three companies have blocked FuboTV from integrating some of their sports channels.
Source: Why Temu Is Spending On Marketing Like A Billionaire }}.
