$240,000 per second! Temu may return to the Super Bowl

Temu was quietly launched in the United States in September last year, but became famous in the major event "Super Bowl" in February this year. Even in the domestic media, I believe everyone has heard of Temu's "Shop like a billionaire" advertisement.

The Super Bowl is the annual championship game of the National Football League, usually held on the first Sunday of February each year, and is one of the most watched top events in the United States.

Just in these two days, foreign media reported that Temu might appear in the Super Bowl again and hope to create a bigger stir in the American market through this move.

According to people familiar with the matter, Temu intends to buy multiple slots of advertising during the Super Bowl next February. According to industry insiders, the price of a 30-second ad during the upcoming Super Bowl ranges from about $6 million to $7.2 million, which means the average price per second is between $200,000 and $240,000.

Sky Canaves, senior analyst at Insider Intelligence , said that the investment in the Super Bowl reflects Temu's strategy, which is to invest heavily in advertising with the strong financial support of PDD, build its popularity in the United States and other markets, and then acquire a large number of customers to support its own operations and improve its industry competitiveness.

Temu said the company did discuss the upcoming Super Bowl but has no firm plans at this time.

In the past year, Temu has invested a lot of financial resources to become a household name in the U.S. According to Etsy CEO Joshua Silverman in the earnings call at the beginning of the month, Temu and SHEIN have almost single-handedly affected the cost of U.S. advertising, especially some channels of Google and Mate.

So far this year, Temu has spent 46% of its advertising dollars on Facebook , 22% on Instagram and 15% on YouTube , according to market intelligence firm Sensor Tower .

According to a recent Goldman Sachs report , Temu has spent about $5 on marketing for every $39 order in the U.S. so far in 2023. However, this figure is still much lower than the $16 spent on marketing for every $29 order in 2022.

Goldman Sachs believes that Temu's average order loss in the United States is about $6, and the average order loss in other markets is about $18. In response, a Temu spokesperson said that the statement about the company's average transaction loss was inaccurate, but did not provide more detailed explanations.

In Sky Canaves' view, Temu's advertising growth method is exactly the same as PDD's, in addition to overwhelming advertising, there is also the so-called gamification of marketing activities, that is, telling users that as long as they frequently visit the website or APP and promote the company to their friends and relatives, they can get extra discounts.

Sky Canaves also believes that Temu hopes to compete with Western retailers such as Amazon through a low-price strategy rather than logistics speed, but the prices of its products are already so low that other retailers cannot match.

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