On February 13, the 57th National Football League (NFL) “Super Bowl” finals were held in Arizona, the United States, and the advertisement of the e-commerce platform Temu also appeared on this day. This also means that a cross-border e-commerce platform focusing on cost performance has entered the US market.
“Shopping like a billionaire”, this 30-second advertisement appeared twice on the “Super Bowl”, arousing the curiosity of the outside world about Temu. The advertisement of “Super Bowl” per second revealed about 200000 dollars. As one of the youngest advertising brands in the history of Super Bowl, what is the origin of Temu?
In only 30 seconds, Temu has made another hit in the United States. Temu keeps the screenshots of the advertising content “shopping like a billionaire”. After Temu went online, it became popular in the United States through “low price” and other service points. According to the data of Sensor Tower, an industry statistics agency, after landing in the U.S. market in September 2022, Temu successfully surpassed Amazon, Wal-Mart and other applications in a very short time to become the most downloaded shopping application in the U.S. market in the fourth quarter of last year.
Temu’s 30-second advertisement tells about a young woman’s shopping experience on the app. The girl described her shopping experience in the advertisement: “The price blow my mind”, “I feel so rich”. With the background music, the final subtitle appears: “shop like a billionaire”.
According to media reports, the advertisement appeared twice on the “Super Bowl”. In addition, Pinduoduo launched a $10 million gift event to attract more users. However, according to the public information, Temu has to pay a lot of advertising fees for its appearance in the “Super Bowl”.
According to the statistics of Statista, the advertising cost of the “Super Bowl” has risen in recent years. A 30-second advertisement costs about 7 million dollars (about 47.91 million yuan), which is equivalent to 1.6 million yuan per second of lens exposure. As a broadcaster, advertising alone can bring about US $600 million to Fox.
Kaidu reported that the research on the Super Bowl advertisement in 2022 showed that the average cost of $1 could bring $4.6 in income, and the Super Bowl has been “very stable” – this year may be no exception. In addition, Oracle previously mentioned that the ROI of efficient marketing activities is 1:5. On the preliminary view, in the United States, the return performance of Super Bowl advertising is good, which basically meets expectations.
The second is to explore potential user groups and “out of the circle”. According to the data of Nielsen, the survey agency, the “Super Bowl” attracted 113 million TV viewers, ranking the top three in the history of television broadcasting in the United States, second only to the “Super Bowl” in 2015 and 2017. Advertising is still the highlight of the Super Bowl. According to the latest report of Kantar, a market research company, citing the data of Sports MONITOR, 1/4 of the audience of the Super Bowl would like to watch the advertisement rather than the competition itself.
This may be a good business for Temu. However, this does not mean that the effect of Temu advertising can be easily judged.
The Kaidu report points out that the most attractive Super Bowl advertisements are due to the diversity of their themes, equality and inclusiveness, or humor. In terms of expression, Deepak Varma, director of Kaidu Neuroscience, also pointed out that “fascinating stories have the power to resonate with people.”
From the situation of the Super Bowl this year, the major “gold owners” have a lot of thoughts while krypton gold.
For example, Rakuten, which is also engaged in e-commerce business, played “killing feelings” in its 30-second advertisement. The advertisement, starred by Alicia Silverstone, reintroduces her classic role and the iconic yellow checked suit in the movie “The Leading Style” 28 years ago – compared with the theme of “low price makes people happy” conveyed by Temu, Lotte tries to awaken the audience’s ancient memories of “fashion”.
This Temu “Krypton Gold” Super Bowl is not cost-effective, and it needs longer observation. Did Shein, who was once in the United States, meet a strong competitor?
Shein, who mainly focuses on “low price and fashion”, has maintained a high momentum in the North American market until the first half of 2022, attracting countless gold. Especially during the epidemic period, thanks to the manufacturing capacity of small and medium-sized manufacturers in China, Shein made a lot of money with the model of small order, quick return and flexible manufacturing, and the driving force of KOL (opinion leader) on Tiktok. The turnover leapt across levels and became one of the most successful unicorn enterprises in the field of cross-border e-commerce.
Behind the platform explosion is the manufacturing capacity of Chinese small and medium-sized enterprises, which is stirring up the U.S. e-commerce market,
The e-commerce platform Temu was launched in September 2022 and played the tactics of team up, price down (equivalent to “team up, price down”) in the United States. From the data of app downloads and other data, it has opened up a situation in the US market.
According to the statistics of SensorTower, as of January 24, 2023, the global download volume of Temu has exceeded 19 million times, 95% of which are from North America; In January 2023, Temu also occupied the top of the free download list in the App Store and Google Play application markets for a long time.
Forbes pointed out in its report that Temu APP has surpassed Shein, Amazon and Wal-Mart in terms of the popularity of App; In terms of playing method, the closest social shopping application to Temu is Venmo – but compared with Temu’s “low team price”, Venmo’s playing method is mainly to recommend to friends and get bonuses. That is to say, Temu, which inherits many lineages and plays, still has differentiated competitive advantages.
From the perspective of data, Temu has really opened a gap in the US market through “extreme cost performance”. Temu has become a new force among old manufacturers such as Amazon and new forces such as Shein. However, in terms of supply chain construction, logistics construction, even quality and reputation, Temu still has a lot of work to do.
