Temu’s ad spend soars as it embarks on a marketing blitz

Online marketplace Temu is counting on a deluge of ads — whether that’s through social media, paid search or television — to win over shoppers.

According to a new study by MediaRadar, Temu’s ad spend jumped 1,000% year-over-year for the period from January to November 2023. Seventy-six percent of Temu’s ad spend for the period went to social media, compared to 13% on digital display ads, the ad intelligence platform found. Temu is also funneling more money into TV and plans to run an ad during the Super Bowl for the second year in a row, according to the Wall Street Journal. Modern Retail reached out to Temu for comment on its marketing spend, but the company said they could not provide comment at this time.

Temu’s appeal lies in its low-priced items such as $2 scrunchies and $10 sneakers. It is a fairly new company, having launched in the United States in September 2022. But, over the past year and a half, it’s managed to grow a large volume of sales by placing ads on TikTok, Instagram, Google and nearly every other channel where people shop. MediaRadar told Modern Retail that from September through December 2023, Temu spent more than $517 million in national advertising. While Temu’s parent company (the Chinese-based PDD Holdings) does not divvy up sales by brand, PDD’s total revenue last quarter reached 68.84 billion yuan ($9.67 billion), an increase of 94% year-over-year. Going forward in 2024, Temu shows no signs of slowing its advertising ambitions.

Like Shein, Temu has resorted to a digital marketing blitz to acquire new customers. Goldman Sachs analysts estimate Temu spent about $1.2 billion on Meta in 2023, and Meta calculated Temu ran 8,900 ads on its platforms last January. Last February, Temu ran its first-ever Super Bowl ad, a

Read More ...

Sportsbet spends extra $19m in marketing blitz ahead of expected gambling ad ban | Gambling

Sportsbet has increased its marketing spend by millions of dollars in an advertising blitz ahead of an expected crackdown by the Australian government.

The business spent an extra $19m on marketing in the first half of 2023 compared with the same period the year before, the financial results of Sportsbet’s Dublin-based parent company, Flutter, show.

Flutter said the “additional marketing spend of £10m” was necessary “to defend our leadership position” in Australia.

The Australian market is fiercely competitive, with a number of new entrants. The industry’s annual turnover is worth around $50bn.

But the chief advocate of the Alliance for Gambling Reform, Tim Costello, said Sportsbet was spending big on ads while it could to generate profits before the expected ban on ads.

Costello, who lobbied the prime minster, Anthony Albanese, and opposition leader, Peter Dutton, to take action earlier this week, repeated his claim that ads were creating a new generation of punters.

“[Sportsbet] are being utterly irresponsible and that rise alone should destroy their social licence to operate,” Costello said.

“This proves a levy on Sportsbet is appropriate and why are we allowing our kids to be targeted by a foreign, Dublin-based company?”

Sportsbet said its marketing spend was “seasonal and dependent on a range of activities”. “This supports racing and sporting industries,” a spokesperson said.

This rise in marketing spending comes as the gambling industry lobbies ministers to water down a parliamentary inquiry’s recommendation for ads to be banned.

In June, the parliamentary inquiry called for a total ad ban to combat the manipulation of an “impressionable and vulnerable audience”. It called for a phased approach to the ban, starting with eradicating online inducements.

At the time, Sportsbet’s chief executive, Barni Evans, criticised the recommendations as disproportionate. He instead called for more measures to improve consumer protections.

Read More ...