Chinese mail-order service Temu spends nearly 440 billion yen on advertising, making it the top advertiser on Meta and one of the top five advertisers on Google.
by
Major mail-order services originating from China, such as Temu and SHEIN , are planning to expand the global market, and are paying billions of dollars (hundreds of billions of yen) in advertising costs to Google and Meta. is reported.
Big American Tech Profits From Chinese Ad Spending Spree - The New York Times
https://www.nytimes.com/2024/03/06/business/google-meta-temu-shein.html
Temu's Push Into America Pays Off Big Time for Meta and Google - WSJ
https://www.wsj.com/business/media/temus-push-into-america-pays-off-big-time-for-meta-and-google-f2721b32
Temu's $2B Ad Spending Boosts Meta, Google Revenues: Analysts Warn Of Potential Challenges If Chinese E-Commerce Giant Decides To Cut Back - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL) - Benzinga
Temu, launched in February 2022 by the international arm of Chinese e-commerce giant Pinduoduo , entered the United States in September 2022 with the slogan 'Shop like a millionaire.' It is also known for posting an advertisement at the Super Bowl held in February 2023.
A study by Bernstein Research , an India-based research company, estimates that Temu will have spent $3 billion (approximately 440 billion yen) on marketing operations in 2023. Also, according to people involved, Temu paid about $2 billion (about 290 billion yen) in advertising costs to Meta in 2023 alone.
Temu has grown to become the top advertiser on Meta by paying a large amount of advertising expenses, and the revenue of Meta's China business in 2023 is expected to be 13.69 billion dollars, up from 7.4 billion dollars (approximately 1.95 trillion yen) in 2022. USD (approximately 2 trillion 2.6 million USD).
Additionally, Temu also pays significant amounts of money to Google for advertising, resulting in it becoming one of Google's top five advertisers in 2023. Google reported in its fourth quarter 2023 financial report that ``Revenue growth from the Asia Pacific region (APAC) in 2023 was particularly strong, with this trend starting in the second quarter of 2023.''
In addition, Google is actively holding talks with Temu, a major advertiser, and sources said that a sales representative from Google in China discussed recent advertising costs and supply chain-related issues with Temu executives. thing.
Some technology company executives predict that ``Temu's advertising spending increases will continue for some time,'' and advertising analyst Brian Wieser said, ``Temu continues to invest to gain market position and They may be losing money every time they make a payment. If Temu decides to cut back on advertising costs, it could be a huge blow to a tech giant like Meta.' .
SHEIN, which was founded in 2008, continues to actively invest in marketing, and in 2023 alone, it will post approximately 80,000 ads across Google, including ads displayed next to search results. According to Meta's advertising library, SHEIN has
In addition to Temu and Shein, video streaming platforms such as Reelshort, DramaBox, and FlexTV, as well as Hong Kong-based game developer First.Fun, are also paying significant advertising costs to Meta and Google. In fact, Meta's CFO Susan Lee told investors, ``Approximately two-thirds of Meta's advertising revenue from China in 2023 will come from advertisers outside of the top 10 ad spenders from China. ``Therefore, there is a wide variety of advertisers on Meta.''
◆Forum now open
A forum related to this article has been set up on the GIGAZINE official Discord server . Anyone can write freely, so please feel free to comment! If you do not have a Discord account, please create one by referring to the article explaining how to create an account!
• Discord | “Have you ever shopped at TEMU, an online shop from China? What did you buy and how long did it take to arrive? ' | GIGAZINE
https://discord.com/channels/1037961069903216680/1216679207346765825
Related Posts:
in Web Service, Posted by log1r_ut