How to reverse calculate Xiaohongshu’s traffic budget?

Master the art of precise delivery on Xiaohongshu to maximize your marketing budget. This article shows you how to reverse calculate the budget for spotlight delivery on Xiaohongshu, from determining marketing appeals to audience analysis, to the selection of advertising formats and budget grading. Each step is a careful consideration of strategy and efficiency.

We all know that if you want to place ads on Xiaohongshu accurately, you need to use Juguang. However, compared with the KOL ads with clearly marked prices, it is difficult to find a reference to estimate the budget of Juguang.

So, today I would like to give some suggestions on estimating and planning the budget for spotlight placement to those who are planning to place a spotlight but don’t know how to budget.

1. Determine your marketing needs

Before allocating budget, clarify the goals of the launch phase, such as brand exposure, sales conversion, or customer consultation collection. Different marketing demands correspond to different launch strategies, which will directly affect the budget allocation.

2. Audience Analysis, Testing and Optimization

Allocate a certain percentage of the budget for A/B testing in the early stages to find the most effective combination by testing different notes, delivery times, and audience targeting.

For example, for the same note, try to set up promotions at different time points/different cities/different groups of people/different age audiences, etc.

By comparing and analyzing the data, we can get the most interested audience profile, which can help us to deliver more accurately in subsequent promotions and reduce unnecessary consumption costs.

3. Advertising format selection

Allocate budget based on (full-site smart investment, search, etc.). Different advertising formats may have different cost-effectiveness ratios.

1) [Brand exposure] usually adopts:

Full-site smart investment is an advertising delivery capability of Juguang platform. It can intelligently calculate the delivery based on the brand's attributes, characteristic materials, etc. Because the promotion scope of full-site smart investment is actually information flow + search + video flow, it is to get as much exposure as possible on the basis of pursuing cost, and because it includes the promotion of some searches, it will also enhance the conversion of traffic to account weight.

For example, from the perspective of post-00s social animals, the brand "Xinve Electric Toothbrush" needs to increase the account weight and number of fans through some traffic-guiding content. Therefore, it is very suitable for them to increase exposure through full-site smart investment, and at the same time, they can also harvest a group of users who are interested in this content and products and convert them into fans.

In addition to the rapid heating of professional accounts, you can also achieve marketing demands such as new product launches, marketing campaigns, and rapid increase in brand voice through full-site smart investment. The full-site smart investment method can help brands quickly increase exposure. Generally, the exposure cost of full-site smart investment is lower than that of targeted investment. The cost is that the crowd is not so accurate and relatively broad.

2) [Sales conversion], usually using:

Search ads are promotional notes that appear directly on the browsing page after users search for keywords in the search box. "High keywords are more accurate." Because the promotion effect that can appear on the search page after the target users with strong consumer needs search, the traffic is also the most accurate, and the conversion rate is also the highest. At the same time, the cost is higher than that of smart investments, and it is usually targeted at precise groups of people.

If you just want to increase exposure, it is recommended to choose full-site smart investment; if you want precise delivery and sales conversion, it is recommended to invest in search

4. Budget classification

The budget is divided into different levels, with one part used for testing and optimization, one part for stable launch, and one part as an emergency budget to cope with market changes or emergencies.

As for the total budget, you can use the size of the crowd to reverse the calculation. For example, if you have set a target crowd and want to achieve 1 million clicks for this crowd, the CPC from the early test is 0.5 yuan, so you can calculate that you need 500,000 to achieve this 1 million clicks.

If you don’t set a target audience, but just want to heat up the high-quality materials, then it is recommended to allocate 25% of the influencer budget as the information flow heating budget. For example, if the influencer spends 1 million yuan in total, it is recommended to allocate 250,000 yuan for the information volume budget.

5. Effect tracking

By tracking the performance of ads in real time, including key indicators such as click-through rate and conversion rate, budget allocation can be adjusted according to the results.

Keep an eye on indicators such as CTR, CPC, and CPE. If there are major promotions in the near future, such as the recent 618, there may be fierce competition and rising costs. In this case, you should consider whether to participate in the competition. If you do, you should consider increasing your budget.

In addition to real-time tracking during the launch, reviewing after the launch is also very important. It can be used as a reference for the next launch budget. With the first standard, the second budget and goal can be easily set.