How to make a budget for Xiaohongshu spotlighting? ｜Practical version of spotlighting

On Xiaohongshu, a marketing platform with great potential, merchants often face a common problem: how to reasonably plan the budget for spotlighting? Based on his own experience, the author provides a detailed budget estimation method for different categories of merchants.

Many businesses do not know how much budget to prepare when investing in Spotlight, and are also unclear about budget setting. It would be great if we could know the investment costs of our peers. We can use some methods to make estimates of the investment amounts of our peers.

Xiaohongshu merchants are divided into 3 categories:

1. E-commerce merchants;
2. Closed-loop merchants;
3. Private domain merchants.

Different businesses have different forecasting methods;

1. E-commerce merchants

Type 1: Estimation of influencer placement costs

E-commerce merchants will use influencers and spotlights when placing ads on Xiaohongshu. Generally, the cost of influencers and spotlights is 1:1. You can use the influencer fees to preliminarily estimate the costs of your peers.

Through the third-party tool Huitun, search for the brand name and click on the amount reported by business influencers in the past 30 days to estimate the cost of its information flow delivery;

Take JD.com as an example. In the past 30 days, the reported advertising amount is 21 million yuan. According to the 1:1 ratio, its advertising amount is also around 21 million yuan.

Figure: JD.com reported influencer placement data

Method 2: You can estimate through the brand’s advertising notes

Still taking JD.com as an example, there are 1,353 brand promotion notes in the past 30 days, with an average interaction volume of 619. Based on the industry interaction cost of 10 yuan, the advertising investment amount is about 8.37 million yuan. Combining the first and second evaluation methods, the investment amount of 8.37 million yuan is more meaningful.

Figure: Jingdong reported that the experts focused on the placement

Type 3: Market share estimation

If you want to gain market share, estimate the cost of advertising. Usually the ratio of search to information flow is 1:3 or 1:2.

Search cost calculation method = core keyword search number * cpc * estimated SOV ratio;

SOV is the ratio of the advertising exposure to all advertising exposures of the keyword. If you want to be the absolute number one in the category, the default SOV is 50%.

Specific usage:

Use Xiaohongshu's keyword tool to promote keywords. Taking face cream as an example, the average monthly search index is 667318, and the market bid is 3.47. If you want to guarantee that all search ads are used up every month, it will cost 2.2 million per month.

If you want to be the first and occupy 50% of the advertising search results, you need 1.1 million. The information flow is usually three times that of the search. If there are 1.1 million searches, the information flow is at least 3 million per month.

Figure: Facial cream keyword data

2. Closed-loop e-commerce

You can use the industry's overall ROI data. If you don't know the ROI data of your industry, you can add my WeChat 18365227923 and I will share the overall market data with you.

For example, the ROI of the clothing industry is around 3. If you want to achieve sales of 90,000, you should focus on investing around 30,000.

If you think your material is of high quality and much higher than that of your competitors, you can reduce the advertising cost by 1/3. At the same time, you can check the notes of your competitors to see the sales of their products and estimate the advertising amount based on the industry ROI level.

3. Private Domain E-commerce

Method 1: Use the private message component capsule

Currently, Xiaohongshu has fully launched the private message capsule, which can show the total number of consultations on the account in the past 30 days.

Figure: Facial cream keyword data

For example, for an account, the number of inquiries in the past 30 days is 5,000. According to the 50% opening rate, there are about 2,500 openings. The opening cost is assumed to be 50. The account has a concentrated investment of about 75,000 in the past 30 days.

If you want to get the same amount of customers, you need to invest at least 75,000 yuan per month in advertising. It may even be higher, because the notes of your peers have been invested for a long time, have a higher weight, and have a lower cost than yours.

Method 2: Rely on industry market data

For example, if the current industry opening cost is 100, if you want to get 100 WeChat accounts every month, you need at least 200 openings (based on a 50% V rate), and the overall advertising cost will be more than 20,000.

The above is the estimated spotlight delivery method for different types of merchants. The method is for reference only.