TECH - Temu's $2B Ad Spending Boosts Meta Google Revenues: Analysts Warn Of Potential Challenges If Chinese E-Commerce Giant Decides To Cut Back | Benzinga
Chinese e-commerce entity, Temu, has given a substantial lift to the advertising revenues of Meta Platforms Inc (NASDAQ:META) and Google parent company Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) through its hefty ad spending.
What Happened: PDD Holdings (NASDAQ:PDD), the parent company of Temu, is said to have spent close to $2 billion on ads at Meta last year, catching the social media giant’s executives by surprise. Temu also ranked among Google’s top five advertisers in terms of spending, reported The Wall Street Journal citing people familiar with the business.
Despite a Temu representative contesting the $2 billion figure, they refrained from disclosing the company’s spending levels at Meta.
The unexpected surge in advertising from Temu, which was launched in 2022, has taken executives at both tech companies by surprise. The Chinese e-commerce platform’s hefty ad spending has not only escalated digital advertising prices but also aided the recovery of Meta and Google’s ad businesses.
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