* This article is a media “Modern Retail[Japan Version]This is a reprint from.
Temu, an online shopping site owned by the e-commerce company that operates the e-commerce app Pinduoduo, which originated in China, is trying to expand further into the United States.
The e-commerce platform, which entered the U.S. last September with an app that features deep discounts and very low prices, is looking to get more Americans to visit its website and download the app. launched an aggressive marketing campaign.
Temu recently aired its first spot in the US at the Super Bowl on February 12th. The 30-second ad, produced by Saatchi & Saatchi and directed by Robert Zitzmark, ran twice during the match and cost about $14 million. It is said that
The Temu ad, with the tagline “Shop like a Billionaire,” saw an immediate increase in downloads and daily active users (DAU). On Super Bowl day, Temu’s downloads surged by 45% compared to the previous day, according to Sensor Tower data, and DAU also increased by about 20%. Since then, Temu’s downloads have continued to grow, outpacing major US retailers like Target in early February.
In an emailed statement, Temu said the ad performed 10 times better than the median, according to research from TV ad measurement firm EDO Inc. there is “Both visits to Temu’s marketplace and app downloads have increased significantly both during and after the game, and interest remains high,” the company wrote. there is
Temu ad aired at the Super Bowl
Impact of Super Bowl Ads
Temu’s parent company, PDD Holidaings, better known in China for its Pinduoduo app, posted revenue of $4.9 billion in the third quarter, up 65% year-on-year. bottom. Chen Lei, president and CEO of PDD, said international business is a new area for the company. “We start with the basic needs of consumers and apply our operational and supply chain know-how and experience.”
“We are still in the early stages of exploring, and the services we offer can be improved in many ways. We need to learn and optimize. The process itself will take time. Let’s see,” Ray said on the company’s third-quarter earnings call.
Temu has seen very solid growth in the US, with over 24 million downloads and has maintained its position as the most downloaded shopping app in the US since its launch, according to Sensor Tower data. ing. The company recently expanded its international operations to Canada. Analysts agree that Temu definitely grabbed attention with its Super Bowl ads, but how many of those new users will come back to the app, and whether the growth rate is actually sustainable? He is skeptical about whether
“The company appears to be in a very aggressive customer acquisition process, trying to acquire as many users as quickly as possible,” said Jouzas Kaziukenas, founder and CEO of Marketplace Pulse. “It has said. “And Temu’s latest attempt, the Super Bowl ad, is almost a reveal party. Here, the company raises the bar on its marketing efforts and goes beyond Facebook and Instagram ads and user referrals. It seems that they tried to reach a wider audience through
With a view to expanding business in the United States
Kaziukenas sees Super Bowl ads as expensive but with a strong one-off element. “This is not a moment of success for Temu, but rather a demonstration of the company’s marketing will and audacity to drive growth from zero to 100 in just a few months.” said he.
While the platform did grow with TV advertising, Temu credits the company’s direct marketing efforts and user referral program for its rapid growth in user numbers in the US. The User Referral Program allows existing users to join Temu by inviting more users to join Temu, in exchange for credits that can be used in the app.
Still, the direct impact of this ad cannot be ignored. Seema Shah, senior research director at SensorTower, said after Temu aired an ad on Super Bowl day, “there was a record spike in both user growth and downloads.” As of February, the app had 13.4 million monthly active users (MAU), according to Sensor Tower data, beating out its target MAU of 9.2 million. However, Temu’s monthly active users in February still fell short of brick-and-mortar retailer Walmart. Walmart had nearly 17.7 million MAUs as of February’s tally.
In Shah’s eyes, the company is clearly focused on expanding its scale in the United States. For example, the company opened an office in Boston last September to manage its U.S. operations. “It’s interesting that they opened an office there, maybe to get a feel for what’s really going on there culturally. That’s why the company came up with the idea of running a Super Bowl ad. That could be the reason,” he said.
Similarities to See-in
Temu’s strategy sounds a lot like Chinese rival SHEIN’s overseas expansion strategy. During the pandemic, See-In decided to go all-in on the U.S. and put a huge amount of effort into pushing its marketing forward in 2021. The brand’s ads are generally specific calls to action with links to specific sales, products and coupons, rather than the ambitious content Modern Retail previously reported. In this way, the company will become the most downloaded shopping app in 2021 and is now considered a leading competitor to online fast fashion. Like Temu, Seein is also using its marketing strategies and low-priced trending products to target a broader audience.
Despite impressive growth, Temu has yet to establish itself as a brand with a unique offering, Kaziukenas said.
“It’s only through aggressive marketing that the company has the users it has today. The company has yet to establish itself as a brand with a unique product selection and a unique customer experience. Right now, the company’s app is pretty generic, but they’ll continue to build on this foundation to make it even more sophisticated,” he said.
“For now, Temu, Ali Express and Wish’s value proposition in China is not good enough in today’s retail industry and needs more work,” he said.