Temu, the Chinese fast fashion brand that has taken the U.S. e-commerce retail industry by storm in recent months, was Metaplatforms’ biggest ad spender on social media sites Facebook and Instagram, according to a report. That’s what it means.
Temu’s parent company PDD Holdings spent about $2 billion on advertising with Meta last year alone. According to the Wall Street Journal.
The $2 billion figure represents 10% of Meta’s advertising revenue last year and is nearly double what it was two years ago.
Meta announced in its latest earnings report that fourth-quarter sales rose 25% year-over-year to $40.11 billion, and full-year sales rose 16% to $134.9 billion.
Meta’s sales are the highest in two years, fueling a meteoric rise in the company’s stock price and propelling CEO Mark Zuckerberg into the stratosphere of the top five richest tycoons in the world. According to the Bloomberg Billionaires Index.
As of Thursday, Zuckerberg’s net worth was $184 billion, significantly surpassing the fifth-richest person, Microsoft co-founder Bill Gates.
Temu, a China-based company that sells cheap clothing rapidly produced by mass retailers, is also among the five companies that spend the most advertising on Google, the magazine reported.
Last year alone, Temu placed approximately 1.4 million ads globally on Google and at least 26,000 ads on Meta’s site.
Temu’s fast-fashion rival Shein was also active in the U.S. digital advertising market.
Shein ranks 16th among U.S. advertisers by digital spend in Q4 2023, up 120% year-over-year.
The Post reached out to Temu, Meta and Google for comment.
Temu spent like a billionaire to become America’s e-commerce champion, leaving winners and losers.
The popular shopping app aired a commercial during last month’s Super Bowl. It is estimated that Tim spent $21 million on his Super Bowl commercial.
Bernstein analysts estimate that Mr. Temu spent more than $1 billion on advertising outside Asia-Pacific last year.
Google and Meta corner the digital advertising market through websites such as YouTube, Google Search, Facebook, Instagram, WhatsApp, and Messenger.
Both Shein and Tem have emerged as serious competitors to US retail giants Amazon and Walmart, according to recent sales data.
According to a June 2023 report from the U.S. Congress, Mr. Shein and Mr. Tem together send about 600,000 packages to the United States every day.
Lawmakers on Capitol Hill are calling for action against the threat Shein and Tem pose to American businesses.
U.S. lawmakers are calling for a ban on imports of products sold in TEM, citing concerns that the fast-growing company is not doing enough to crack down on forced labor.
with post wire
