Key Takeaways:
Chinese ecommerce phenomenon, Temu, completely captivated US consumers over the course of 2023 with its vast assortment of low-cost goods and in-app gamification elements. Although Temu has aggressively ramped up its US ad spend over the past year in a noteworthy any-user-at-any-cost strategy, like most shopping apps, it skews typically towards female users in the US, at 60% in 4Q23, vs 58% and 53% for competitors Walmart and Amazon, respectively, in the same period
Temu’s in-app gamification elements and flashy UI/UX have made it appeal heavily to users of casino games, which primarily skew male. Per ST’s Audience Insights, US Temu users spent 160% more time on Casino games compared to the average smartphone user in 4Q23, significantly greater than peers such as Walmart (+83%), Target (+45%), Amazon (+28%), and Etsy (-42%)
The higher levels of over indexed interest in Casino games by Temu’s audience vs its competitors signals that the ecommerce upstart could launch promotional campaigns or advertisements within these gaming apps and likely see higher levels of user acquisition and engagement among male users, who typically comprise the majority of the demographic makeup of these titles
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