The second half of Xiaohongshu’s bonus has begun!

Now more and more people are starting to use Xiaohongshu, resulting in too many bloggers and not enough users. But does this mean that Xiaohongshu is no longer necessary? In fact, on the contrary, the second half of Xiaohongshu's dividend has just begun.

If you ask me, does Xiaohongshu still have dividends? If so, where are the dividends? I would answer, yes, Xiaohongshu's dividends are still there, but they are shifting. The second half of Xiaohongshu's dividends is in the focus of community user growth. Behind the rapid growth of commercial traffic scale.

After the Spring Festival Gala, Xiaohongshu's monthly active users have increased significantly, and are now close to 300 million. However, I think the growth in commercial traffic scale is more obvious than the growth in community users.

The operational strategies of the Spring Festival Gala and other events are indeed effective. They not only bring a certain amount of new members to the community, but also increase the number of users who use the service in depth. Some users who originally did not have population labels have been given labels, which makes the scale of commercial traffic larger. This is the inevitable result of the community's growth beyond the circle and the platform's aggressive commercialization.

Douyin has also gone through this stage, quickly increasing from 200 million monthly active users to 400 million monthly active users. At that stage, most businesses probably felt the wave of traffic for the first time. This was a wave that Taobao and Jingdong had never experienced. Everyone felt that they were standing on the cusp of the trend, and everyone also felt that the scale of traffic distribution was indeed large!

However, few people know that all influencers and merchants have taken on part of the role of cleaning user labels for Douyin. Faced with exponential user growth, the platform needs to use a large amount of content to clean user labels. The more user labels there are, the more accurate the content recommended by the algorithm will be.

So, in fact, during that period, traffic was indeed cheap, but it was not that accurate. The wool comes from the sheep, and you think you have made money, but in fact only Douyin has made money.

No merchant is the winner, only TikTok is the winner.

Have you noticed that after this wave subsided, many influencers and institutions stopped updating, and many influencers suffered from depression. This is indeed difficult to understand. "I could be seen by so many people at that time, why am I only seen by so few people now?" You may feel like you are suddenly pushed into the spotlight and then suddenly abandoned.

Xiaohongshu is a little different, merchants can also be winners.

Compared with Douyin, Xiaohongshu has an advantage in that users are more likely to be labeled because search is the main usage scenario for Xiaohongshu users. Every user who enters Xiaohongshu will naturally use search to make consumption decisions. Therefore, Xiaohongshu users are more likely to be labeled, and this label is very close to consumer demand, which determines that the scale of Xiaohongshu's commercial traffic can be very large, and the growth rate is also faster than that of community users.

The community is so small, if the increase in commercial traffic is greater than the increase in community users, then the scale of commercial traffic will inevitably compress the space for natural traffic. Although it is said that after a note is posted in the information flow, it will not affect the distribution of natural traffic, but it can be clearly felt that the ceiling of natural traffic is getting lower and lower, while the scale of commercial traffic is getting larger and larger, and the crowd is getting deeper and deeper.

Compared with natural traffic, commercial traffic is more accurate. We can use audience packages to target the target audience we want to reach, and in the case of potential explosive articles, the cost per click will continue to decline. At this time, the cost-effectiveness of commercial traffic is actually higher than that of natural traffic.

After all, we invest in content to promote products, and to promote products, we need to accurately reach the target audience. Traffic is about accuracy, not quantity. Do you remember the anti-funnel crowd strategy advocated by Xiaohongshu? First influence the core target audience, and then gradually break through the circle.

Moreover, many subcategories actually do not have many competitors. In other words, except for a few popular categories such as beauty, skin care, mother and baby, most categories do not have that many merchants with good traffic investment.

Therefore, Vic suggests that business friends who have already invested in good materials can consider increasing the proportion of the budget for traffic this year, and at the same time start to accumulate the scale of their own audience packages. Compared with investing more and more, it is better to invest more and more accurately.