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Temu, a shopping app from Chinese e-commerce giant Pinduoduo, has established itself as the #1 app in the US app store. The mobile shopping app hit the top spot on the US App Store in September and continued to climb the ranks in the following months, including the #1 free app on Google Play since December 29, 2022. continue to maintain. , Temu hit his #1 spot again on the iOS App Store on January 3rd and hasn’t fallen since.
Providing cheap factory-to-consumer goods, Temu provides access to a wide range of products, including fast fashion, and encourages users to share the app with friends in exchange for free products. However, most of the new installs are likely due to Temu’s marketing expenses.
When TechCrunch covered Temu’s rise in November, the app had more than 5 million installs in the US, making it its largest market, according to data from app intelligence firm Sensor Tower. . Now, according to the company, the app has had his 5 million installs in the US in January alone this year, and from December 10, he has had 4.2 million installs in the 22 days through December 31. 19% increase.
According to Sensor Tower estimates, Temu has a combined 19 million lifetime installs on the US App Store and Google Play, with over 18 million coming from the US.
Temu now surpasses rival Shein in daily installs. According to the company, his Temu averaged around 43,000 daily installs in the US in October, while Shein averaged around 62,000 installs. In November, Temu’s average daily installs increased to his 185,000, while Shein rose to his 70,000. bottom.
The rapid growth of shopping apps is a reminder that video entertainment platform TikTok will become the world’s most downloaded app in 2021 after years of massive growth. According to Sensor Tower, the video app, including its Chinese sister app Douyin, surpassed his 2 billion lifetime downloads by 2020. Combined, the number of TikTok app installs has reached his 4.1 billion.
Like Temu, much of TikTok’s early growth came from marketing costs. The video app has expanded its footprint in the U.S. and internationally by leveraging its own advertising platforms of Facebook, Instagram, and Snapchat to acquire customers. For example, TikTok is said to have spent $1 billion on advertising in 2018, and he also became Snap’s biggest advertiser that year.
By investing in user acquisition upfront, TikTok has gained followers, which has improved its ability to personalize its For You feed with recommendations. Over time, the algorithm has been very good at recognizing which videos are most engaging thanks to this investment, making TikTok one of the most addictive apps in terms of time spent. became. As of 2020, the child and her teens have started spending more time watching her TikTok than YouTube. And earlier this month, Insider Intelligence data showed that all his TikTok users in the US now spend nearly an hour (55.8 minutes) on average per day on the app, compared to YouTube, including YouTube TV. was only 47.5 minutes.
Temu is nowhere near TikTok’s high numbers, but it appears to be leveraging a similar growth strategy. The company invests heavily in advertising to acquire users that they use to personalize their shopping experience. In fact, one of Temu’s key features is her own For You page, which encourages users to browse “Selected for You” of her items trending. In addition to the gamification element, Temu also focuses on recommending shops and products on its homepage based on user data.
However, the app’s growth does not appear to be driven by social media. TikTok’s Temu hashtag (#temu) is nearing 250 million views, which isn’t all that surprising for an app as big as TikTok, where something like #dogs has 120.5. a billion view. (Or, as a more direct comparison, #shein’s views are his 48.3 billion views.) This suggests that Temu’s rise isn’t necessarily the videos or influencers he’s talking about among his Gen Z users. It suggests that it is not due to the marketing of the company, but from traditional digital advertising.
For example, according to Meta’s ad library, Temu has placed around 8,800 ads across Meta’s various platforms this month alone. This ad promotes a Temu sale and heavily discounted items such as $5 necklaces, $4 shirts, and $13 shoes. These ads appear to be working to drive Temu’s installs, allowing the app to maintain his No. 1 slot on the App Store’s “Top Free” chart. This is heavily influenced by the number of downloads and download speed, among other things.
Of course, a high number of downloads doesn’t necessarily mean that Temu’s app can maintain a large number of monthly active users. Nor does it mean that these users will stick with the app after their initial curiosity wears off. Still, Temu’s download growth has ranked it as the #1 downloaded “Breakout” shopping app in the US in 2022, according to data.ai’s year-end “State of Mobile” report. (Data.ai calculates “breakout” apps in terms of year-over-year growth on iOS and Google Play.)
Due to Temu’s recent growth, the app did not achieve a top 10 app position in 2022 in the US or globally in terms of downloads, consumer spending, or monthly active users in this report. Instead, most of these spots still went to social media apps, streamers, and dating apps like Bumble and Tinder. The only retailer to find a spot on these lists was Amazon, which was the 7th most downloaded app in the world by active users and the 8th most downloaded app in the US.
Temu’s marketing investments may not fare as well as TikTok’s. Other discounts saw similar growth on his shopping app, which later fell through as consumers realized that buying a $2 shirt and jeans was too good a deal for him. rice field. Wish famously failed as it frustrated consumers with the long delivery times, fake listings, missing orders, and poor customer service they expected from online retail in the Amazon era.
Temu currently has a 4.7 star rating on the US App Store, but these ratings are becoming less reliable over the years as companies can easily avoid fake reviews. Dig deeper into the reviews and you’ll find similar complaints against Wish, including fraudulent listings, damaged or delayed deliveries, incorrect orders, and lack of customer service. Without addressing these issues, Temu is more likely to go down the Wish road than TikTok, no matter how much they spend.
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