Xiaohongshu focuses on traffic | Core element control and data-driven optimization strategy

This article introduces the practical experience and strategies of Xiaohongshu advertising, aiming to help brands and individuals better utilize the Xiaohongshu platform for targeted advertising and improve marketing effectiveness.

Many friends have been asking us questions about Xiaohongshu advertising , as shown below:

1. How to plan subsequent investment based on the reporting notes?
2. When is the best time to publish notes?
3. How to determine the most appropriate delivery type for a note?
4. How can I break the deadlock when I have no promotion ideas?
5. After the notes are published, what data should be mainly looked at to evaluate whether the run is good?
6. How does Xiaohongshu Notes target precise groups of people?

In order to help everyone solve the problems encountered during the delivery process, we invited the operations manager of Shiguangbaohe on the evening of May 8 to give everyone a live broadcast on the practical experience of focusing on Xiaohongshu's delivery .

The live broadcast starts from four dimensions (delivery links under different goals; planning and building process; viewing and analyzing data; optimization strategy) and demonstrates through specific cases. At the same time, it will also explain the commercial marketing delivery, CID, Little Red Star, Lingxi , etc. that have attracted the most attention recently.

1. Xiaohongshu's commercialization process will accelerate in 2024, with both opportunities and challenges

Xiaohongshu channel is the fastest growing platform in 2023: with a growth of 20%, monthly active users have reached 312 million.

1. Unique features of the Xiaohongshu channel

Low threshold : As long as you create good content on Xiaohongshu, you can increase your business;

High user quality: Xiaohongshu users have high paying ability, high conversion rate and low return rate;

Assist in product selection and new product launch: Xiaohongshu is very suitable for gaining insight into user needs, launching new products and running test models, obtaining the first wave of accurate market feedback, and then deciding whether to increase sales.

2. Xiaohongshu e-commerce is just beginning

Merchant growth : In 2023, the number of merchants with an annual transaction volume of over 100 million yuan on Xiaohongshu's e-commerce platform increased by 500% year-on-year, and the number of merchants with a transaction volume of over 10 million yuan also achieved a year-on-year growth of 380%;

Live streaming sales growth: The sales of the top 100 live streaming rooms in the live streaming sector have increased by more than 15% in the past six months, and the sales share of brand-owned live streaming rooms has increased from 10% last year to more than 20% in January this year, and brand-owned live streaming sales have continued to grow;

Note sales growth: From January 2024 to August 2023, note sales increased by more than 40%, and the average order value is also gradually increasing.

2. Xiaohongshu paid advertising strategy: refined management from testing to volume expansion

Brands that want to conduct paid advertising on the Xiaohongshu platform can start with the following two steps to do a good job of paid advertising on Xiaohongshu.

1. Clarify the purpose of the campaign

Is it to get traffic? Or is it to sell goods? How to judge whether to get traffic:

Through the promotion on Xiaohongshu, has the product’s reputation been improved on the Xiaohongshu site?

As the interaction of the campaign increases, will there be an equal proportion of traffic overflow to off-site e-commerce purchasing platforms?

Direct sales link: As the traffic of trailer notes increases, will the sales on Xiaohongshu increase proportionally? Or can we directly jump to the off-site e-commerce platform through CID to purchase directly?

2. Establish the standard for volume expansion

Once the marketing goal is determined, the brand can find the target audience based on the product characteristics, and then produce appropriate note content according to the company's budget to obtain traffic. At this time, we need to establish the delivery standards:

1. What type of note content is suitable for delivery?

2. At what point can the money be spent around the marketing goals?

3. To what extent can the brand withstand the increase in sales?

How to find a model that can be scaled up? Brands need to have a testing period for the published notes, that is, to find a model that can be scaled up. This model must meet your company's current needs/standards.

1. For example, if the brand's marketing goal is to sell goods: Is it possible to sell 100 orders based on a ROI of 1.5?

2. For example, if the brand's marketing goal is to get traffic: the note reaches 8k-1w readings, and the data of each port changes; if the number of readings is very small, it will definitely be difficult to see the changes in the port overflow data.

Based on the data model and the maximum investment cost calculated by the company's finance/operations manager, the feasibility of the launch plan can be determined!

After the testing period, the next step is to invest time and money to amplify the model above and help the brand get more results (product purchases or large exposure). At this time, we need to establish psychological expectations and have a judgment point in our hearts. For example, if the ROI during the testing period is 1.5, it will fluctuate as the volume increases. If the ROI drops to 1, can the company accept this profit?

If the data is far lower than expected, we must determine which link of the material has a problem (CTR, conversion rate, CPE, etc.). Brands can use the control variable method to find the problem layer by layer, change the targeting (adjust the crowd) or bid (improve competitiveness) to see if we can optimize our delivery data. If each link has been tested and still does not achieve the expected results, then change the material or stop the loss in time.

3. Xiaohongshu paid delivery optimization: core element control and data-driven material screening strategy

The above shares with you how brands can do a good job in Xiaohongshu paid advertising with two key points: clarify the purpose of advertising and establish the standard of volume. We also need to clarify the two core factors that affect the results of advertising:

1. The core factors affecting delivery: click-through rate;

3. The core factors that affect the volume: targeting & bidding.

Tips: The mechanism of Xiaohongshu information flow advertising is that the same note is only exposed once under the same IP within 24 hours. Therefore, when the targeting is very narrow, it is easy to have no one to run (at this time, no matter how much you optimize the bid, it will be useless).

In addition, what specific data should we pay attention to and what links should be optimized during the delivery process to improve advertising efficiency?

1. Delete 4 data of running volume materials

Click; interaction; click-through rate; conversion rate. These four data also represent click cost, interaction cost, visitor cost, and ROI.

2. Material optimization direction that affects the above four data

Cover title; content quality and comment area; content popularity; product purchasing power.

If the data is very poor after the material is released for 24 hours, you can optimize and select the running materials based on the factors in the above links. The ability to simultaneously calculate different plans/materials, choose to use valuable content that meets the ultimate marketing goals for the release, so as not to waste the release costs.

4. Why are many brands not doing well on Xiaohongshu?

1. Not understanding the platform, creating a large amount of content without planning, but not having any hits, and instead having their accounts blocked;

2. The purpose is not clear. A small budget is used to find a service provider for a trial. If the expected results are not achieved, the user will quickly judge that the platform is not good, which results in the failure of the previous delivery test.

3. The marketing rules are chaotic. After experiencing a bonus period, due to the recent decline in efficiency, the marketing is stopped immediately instead of adjusting the strategy;

4. Use Xiaohongshu as an advertising platform and demand extremely high ROI returns as soon as the product goes online.

Re-understanding Xiaohongshu

All platforms are the same in doing business. No one can make money right away. They all require investment and adjustment to eventually develop a business model that suits their team. If you want to do well on Xiaohongshu, you must understand the following 4 points:

1. Xiaohongshu is a marketing channel that adds icing on the cake. If the product itself is not good, it will be useless no matter how many channels you change;

2. Although Xiaohongshu is a content platform, it does not mean that you will get conversions just by posting product display content. You need to think clearly about what kind of users your content is a solution to and what needs it provides. There are so many products on the market that can solve current problems, so why do users choose you?

3. Service providers are a solution to accelerate the current model of brand launch and amplify the volume: they are not the core gripper for new brands entering Xiaohongshu. If the other party can complete the launch of Xiaohongshu from 0 to 1 by themselves and the ROI is very high, why not make money by themselves, but only take a little service fee after hard work? In addition, service providers are not a channel for brands to pass on pressure when they fail to meet the indicators. If the service provider fails to meet the predetermined goals, it can still serve the next brand, but for the brand, it loses more opportunities to game the market~

4. Many bosses habitually judge whether a channel is good or bad based on whether it can make money quickly, but you need to understand one thing:

The production requirements are based on the volume threshold after the personnel, goods and venues are clearly defined, and are not entry requirements that apply to all channels.

Author: Sally Nan

Source: WeChat public account: Nankaikou (ID: nnvoice)