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 ...

How Much do Small Businesses Spend on Advertising?

Small businesses are spending more on their marketing budget numbers. In fact, advertising expenses have gone up almost 4% in 2023 from the previous two years. Deloitte reports advertising budgets will make up about 13.6% of the total for these enterprises this year.

What is The Average Marketing Budget for a Small Business?

The average marketing budget for a small business varies depending on the industry, the size of the business, and the marketing goals. However, a good rule of thumb is to spend between 7% and 10% of your gross revenue on marketing. According to Salesforce, B2C companies should spend 15% of their revenue on campaigns. Hubspot reports the average spend for a business was 8.7% of total revenue last year.

For example, a small business with $1 million in annual revenue could have a marketing budget of $70,000 to $100,000. This budget could be used to cover a variety of marketing expenses, such as:

  • Advertising: This includes paid advertising on channels such as Google, Facebook, and Instagram.
  • Content marketing: This includes creating and distributing blog posts, articles, e-books, and other content that attracts and engages potential customers.
  • Public relations: This includes generating positive media coverage for your business.
  • Events and trade shows: This includes attending and exhibiting at industry events and trade shows.
  • Search engine optimization (SEO): This involves optimizing your website so that it ranks higher in search engine results pages (SERPs).

The specific marketing channels that you use will depend on your target market and your marketing goals. However, by investing in a solid marketing budget, you can reach more customers, generate more leads, and grow your business.

Here are some additional tips for creating a small business marketing budget:

  • Start by setting your marketing goals. What do you want to achieve with your marketing
Read More ...

Influencer ad spend growing faster than traditional ad investment

Influencer ad spend is accelerating faster than investment in traditional adverts.

Brands were advised to consider adjusting their campaign strategies to align with the rising popularity of influencers after this finding was revealed in Insider Intelligence’s Influencer Marketing 2023 report.

Why we care. As more businesses embrace influencer marketing, the way people consume ads is shifting. This suggests that traditional ads might not work as well anymore. Advertisers should stay updated on these changes to ensure they get the most out of their ad investments.

Screenshot 2023 09 08 At 15.13.19 562x600

Income breakdown. The report included a detailed breakdown of how influencers are generating incomes on their platforms (% of respondents):

  • Sponsored content – 82%
  • Affiliate – 56%
  • Advertising revenue – 33%
  • Creatore funds – 25%
  • Paid content subscriptions – 16%
  • Selling merchandise – 15%

Influencer opportunities on the rise. The Hollywood writers’ strike could create more chances for influencer marketing, which may accelerate influencer ad spend even further, according to the report. This is because content creators are likely to seek alternative ways to make money during the strike. Additionally, social platforms are actively trying to attract top creative talent, which is likely to open up more possibilities for brand partnerships.


Get the daily newsletter search marketers rely on.


What has Insider Intelligence said? A spokesperson from Insider Intelligence said in the report:

  • “The time to act is now. Influencer marketing spending will rise roughly 3.5 times faster in 2023 than social ad spending will. That’s a testament to the resilience of creators, even amid economic concerns and major competition.”

Deep dive. Download the complete Insider Intelligence report and read it in full for more information.


New on Search Engine Land

About the author

Nicola Agius

Nicola Agius is Paid Media Editor of Search Engine Land after joining

Read More ...

2024 global ad spend will surpass $1 trillion: report

Get marketing news you’ll actually want to read

The email newsletter guaranteed to bring you the latest stories shaping the marketing and advertising world, like only the Brew can.

Global ad spending is predicted to exceed $1 trillion in 2024, according to a report from marketing research firm WARC.

Spend is expected to increase 8.2% next year, the report estimates, while this year it’s set to jump 4.4% to $963 billion.

Alphabet, Meta, Amazon, Alibaba, and TikTok parent ByteDance will pull in 51.9% of all ad spend next year, per WARC’s analysis. Nitin Sinha, head of paid media at ad agency Laundry Service, told Marketing Brew he isn’t surprised that advertising spend could hit $1 trillion next year, especially considering the many advertising options these tech companies offer.

“As you would expect, some of these companies rely so heavily on advertising as their sources of revenue, so they’ve done a good job of optimizing that and giving advertisers a lot of options,” he said, pointing to YouTube’s move into short-form video as an example.

Besides examining total growth, the report broke down expected global ad spend growth by channel. It predicted that social media will experience the fastest growth next year, accounting for a fifth of global ad spend and reaching $227 billion. Meta will likely account for the lion’s share (64%) of spending in this category. Retail media will also boom, rising an expected 10.2% this year and 10.5% in 2024 to reach ~$142 billion, with Amazon accounting for 37% of that category’s spend.

The report also examined global ad spend data by sector, finding that financial services, tech and electronics, and pharmaceutical and health industries will likely experience the fastest growth. In terms of spend by country, the US will bring in about a third of global ad

Read More ...

Latest Google Play Store update gives you more reasons to spend money on games

Google’s Monthly System updates for Android are designed to improve user experience with the addition of new features. These updates are generally limited to routine patches for the Android system, Play Store, and Play Services. The July 2023 System Update, on the other hand, has contained more than just bug fixes, with an upcoming Google Wallet feature being detailed in the changelog and then disappearing mysteriously, only for a Google spokesperson to confirm its arrival later. Another addition has caught our eye among the list of changes, specifically related to the improved visibility of new offers and promos for games on the Play Store’s homepage.


We’ve spotted the mention of this promotional content feature within the July 2023 Google System Updates changelog, detailing how Android smartphones can now “see whether new events, updates, offers, and content are available within an app or game” from the Play Store’s home screen.

The feature already appears to have been live for some time on the web version of the Play Store, which also has the benefit of displaying more promotional content, whereas mobile users are restricted to single swipeable cards on top of the screen. Switching to landscape orientation offers a broader view of the available deals on games, however. These changes are part of the Google Play Store version 36.5 update, which began rolling out to devices on July 3.

These cards only appear on the Games tab in the Play Store (for now), with each card marked with “Special Event” on the top left. A bulk of these promos highlight some of the most popular mobile games in the business, including Roblox, Clash of Clans, Pokémon Go, etc. Meanwhile, navigating to the last card in the carousel takes you to a hub page containing all “offers & events.”

This

Read More ...

How Much do Small Businesses Spend on Advertising?

Small businesses are spending more on their marketing budget numbers. In fact, advertising expenses have gone up almost 4% in 2023 from the previous two years. Deloitte reports advertising budgets will make up about 13.6% of the total for these enterprises this year.



What is The Average Marketing Budget for a Small Business?

According to Salesforce, B2C companies should spend 15% of their revenue on campaigns. Hubspot reports the average spend for a business was 8.7% of total revenue last year.

What Marketing Costs Need to be taken into Account?

Small businesses have two different marketing and advertising budget costs. These can be subdivided for a target audience that prefers online marketing, or offline small business tools.

Online Advertising Budget

Content marketing is a big part of the efforts that go into a budget. Online advertising costs are different for B2B and B2C businesses.

Digital advertising had an estimated worth of $210 billion by 2022.

Offline Advertising Budget

As you might expect, not everyone has an ad spend geared exclusively toward digital advertising. Traditional advertising also has a role and a budget process to get repeat business.

how much do small businesses spend on advertising

1. Online Advertising: Marketing Budgets for Small Businesses

Last year alone, around $616 billion USD was spent on digital advertising globally. The following are some of the best investments in that space.

Google Ads

This is a fairly simple way to draw in potential customers. It is Google’s online advertising tool. Your business needs to choose keywords that align with your goals. This option is also called Google Adwords.

Social Media Marketing

Simply put this is about creating content that promotes your product and services. Don’t put all your eggs in one basket — many businesses use a variety of platforms like Instagram and Facebook.

Search Engine Optimization

SEO is about optimizing

Read More ...