Temu, the shopping app that has been making waves in the American market, recently ran its second Super Bowl ad. The ad, which appeared multiple times during the game, is estimated to have cost a staggering $21 million. While other ads during the Super Bowl featured A-list celebrities and captivating storylines, Temu took a different approach. Their ad featured a cast of off-brand Pixar characters who had their wishes granted by an orange-gowned sorceress. The ad had a milquetoast gleam, similar to media generated by AI, but there is no indication that AI was involved in its creation.
Unlike most companies that invest in Super Bowl ads, Temu prioritized familiarity over glitz and glamour. The ad may not have been remarkable in terms of content, but it served its purpose of reaching a massive audience. By the third appearance of the ad, party guests were singing the jingle and realizing they had been mispronouncing the app’s name all along. Temu, a fast-growing retailer with ties to China, is competing against other retailers like Shein and TikTok Shop to challenge Amazon’s dominance in the American market.
From the beginning, Temu recognized that getting its name out there would be a significant challenge. With Amazon dominating online retail and Walmart and Target reigning over in-person shopping, Temu needed to find a way to stand out. The company’s first Super Bowl ad aimed to introduce itself to the American audience. Now, with its second ad, Temu is focused on building familiarity among American shoppers.
Super Bowl ads have become a way for new companies to establish themselves in mainstream consumer consciousness. Temu’s ties to China make these associations even more valuable. While many Americans prefer domestically manufactured goods, they are willing to bend their preferences when foreign-made products are cheaper. Temu aims to persuade American shoppers to buy directly from a foreign retailer, and building familiarity is the first step in achieving that goal.
Temu’s approach to advertising is consistent with its other marketing moves over the past year. The company has invested millions of dollars in surfacing its products in search listings and online-ad placements. Combined with its efforts on TV and elsewhere, these campaigns have cost an estimated $1.7 billion. Temu’s massive expenditures have not only impacted the cost of advertising all over the internet but also affected the bottom lines of its competitors.
Despite accusations of selling goods made with forced labor and selling products at a loss to gain market share, Temu has seen tremendous success. In 2022, the company did an estimated $16 billion in sales, surpassing Target’s online revenue. Temu’s success can be attributed to its ubiquity and low prices. While advertising alone cannot make a product or service a phenomenon, it is a necessary component for success in the consumer market.
Temu’s long-term success will depend on more than just advertising. However, if the company fails, it won’t be because no one knew its name. With its strategic marketing campaigns and massive investments, Temu has firmly established itself in the American market. As the battle for dominance in online retail continues, Temu is positioning itself as a formidable competitor to Amazon.