On Friday, June 14th, 2024 at 7:00 am, Jess Jones and Maria Ward-Brennan reported on Temu’s recent activities targeting trademarked brands, following Dr. Martens’ legal action against them for alleged use of Google ads to promote counterfeit products. Temu, a Chinese e-retailer, has bid on the trademarks of over 80 well-known brands in the past two months, as disclosed by data shared with City A.M. Marcode AI, an artificial intelligence company, revealed that out of 145 British brands analyzed, Temu has utilized 84 of these names in advertisements on Google and Bing within the last 60 days.
The majority of these targeted brands are retailers such as Zara, Rayban, Dyson, Curry’s, Marks & Spencer, along with tech firm Figma and telecom provider Three. Through keyword advertising, companies like Temu can elevate their ad visibility on search platforms like Google, potentially leading to increased sales. Marcode monitors search results frequently to help brands safeguard against such advertising tactics. Temu’s ads often appear alongside various brands, sometimes unrelated to Temu’s offerings, suggesting a broad targeting strategy within ad platforms.
Under UK law, companies can bid on trademarks for advertising purposes as long as it doesn’t cause consumer confusion about the product’s source. Dr. Martens’ lawsuit against Temu alleges that their ads using keywords like “Dr Martens” and “Airwair” have overshadowed Dr. Martens’ authentic products in search results, leading to potential consumer confusion.
Faye McConnell from law firm Browne Jacobson noted that while companies can bid on trademarks, proving consumer confusion can be challenging and costly. Brands often respond with increased sponsored ads instead of legal battles. Another recourse is reporting such activity to platforms like Google and Bing, although this process can be manual and time-consuming.
Temu stated it is committed to fair competition and responsible advertising, using robust processes to avoid targeting brand names. However, brand names may inadvertently appear in their ads due to automated keyword insertion processes. Temu assured it would review the provided list of trademarks and take immediate action to rectify any issues.
Temu’s aggressive advertising approach, reflected in its motto “shop like a billionaire,” has seen substantial spending estimated at $3bn (£2.3bn) last year by Bernstein Research. Despite such spending and securing prominent advertising spots like the Super Bowl, analysts question the sustainability of Temu’s strategy, especially given its low pricing and reported losses per order in the US.
By Benjamin
On Friday, June 14th, 2024 at 7:00 am, Jess Jones and Maria Ward-Brennan reported on Temu’s recent activities targeting trademarked brands, following Dr. Martens’ legal action against them for alleged use of Google ads to promote counterfeit products. Temu, a Chinese e-retailer, has bid on the trademarks of over 80 well-known brands in the past two months, as disclosed by data shared with City A.M. Marcode AI, an artificial intelligence company, revealed that out of 145 British brands analyzed, Temu has utilized 84 of these names in advertisements on Google and Bing within the last 60 days.
The majority of these targeted brands are retailers such as Zara, Rayban, Dyson, Curry’s, Marks & Spencer, along with tech firm Figma and telecom provider Three. Through keyword advertising, companies like Temu can elevate their ad visibility on search platforms like Google, potentially leading to increased sales. Marcode monitors search results frequently to help brands safeguard against such advertising tactics. Temu’s ads often appear alongside various brands, sometimes unrelated to Temu’s offerings, suggesting a broad targeting strategy within ad platforms.
Under UK law, companies can bid on trademarks for advertising purposes as long as it doesn’t cause consumer confusion about the product’s source. Dr. Martens’ lawsuit against Temu alleges that their ads using keywords like “Dr Martens” and “Airwair” have overshadowed Dr. Martens’ authentic products in search results, leading to potential consumer confusion.
Faye McConnell from law firm Browne Jacobson noted that while companies can bid on trademarks, proving consumer confusion can be challenging and costly. Brands often respond with increased sponsored ads instead of legal battles. Another recourse is reporting such activity to platforms like Google and Bing, although this process can be manual and time-consuming.
Temu stated it is committed to fair competition and responsible advertising, using robust processes to avoid targeting brand names. However, brand names may inadvertently appear in their ads due to automated keyword insertion processes. Temu assured it would review the provided list of trademarks and take immediate action to rectify any issues.
Temu’s aggressive advertising approach, reflected in its motto “shop like a billionaire,” has seen substantial spending estimated at $3bn (£2.3bn) last year by Bernstein Research. Despite such spending and securing prominent advertising spots like the Super Bowl, analysts question the sustainability of Temu’s strategy, especially given its low pricing and reported losses per order in the US.