Chinese shopping app Temu spent $2B on Facebook, Instagram, $META, ads

Chinese shopping app Temu spent $2B on Facebook, Instagram, $META, ads, per NYP.


Temu's parent company, PDD Holdings, reportedly allocated approximately $2 billion to advertisements with Meta in the last year alone, as per The Wall Street Journal.

This figure represents 10% of Meta's ad revenue last year, almost double the amount from two years ago.

In its latest earnings report, Meta disclosed a 25% year-over-year increase in fourth-quarter revenue to $40.11 billion, with full-year revenue up 16% to $134.90 billion.

These strong sales figures have propelled Meta's stock price, elevating CEO Mark Zuckerberg into the top five richest individuals globally, according to the Bloomberg Billionaires Index.

As of Thursday, Zuckerberg's net worth stood at $184 billion, surpassing the fifth richest person, Microsoft co-founder Bill Gates.

Temu, known for its affordable, rapidly produced clothing from mass-market Chinese retailers, was also among the top five spenders on Google advertisements, as reported by the Journal.

Over the past year, Temu has placed approximately 1.4 million global ads on Google and at least 26,000 ads on Meta's platforms.

Shein, a fast-fashion competitor to Temu, has also been active in the US digital advertising market.

In the fourth quarter of 2023, Shein was the 16th largest US advertiser by digital spending, marking a 120% year-over-year increase.

Shein even aired commercials during the Super Bowl last month. It's estimated that Temu spent $21 million on Super Bowl ads.

Bernstein analysts estimate that Temu allocated over $1 billion to advertising outside the Asia-Pacific region last year.

Google and Meta dominate the digital advertising market through platforms such as YouTube, Google Search, Facebook, Instagram, WhatsApp, and Messenger.

Both Shein and Temu are emerging as significant competitors to American retail giants like Amazon and Walmart, according to recent sales data.