How Can Businesses Leverage Xiaohongshu Ads and Generate Millions in Revenue?
Imagine your brand becoming famous in China, where millions eagerly share and buy your products.
Exciting, right?
Just like how a beauty brand increased sales by 150% in six months with targeted Xiaohongshu paid ads, and a fashion brand saw 200% more interactions with their posts by using effective advertising methods.
These success stories show how powerful Xiaohongshu advertising can be for your brand.
Why Xiaohongshu is Awesome for Advertising
Chinese users on Xiaohongshu enjoy discovering new brands. Over half of the users love finding products from lesser-known companies.
Surprisingly, even though Xiaohongshu is filled with user-generated content, 80% of its 30 billion RMB yearly revenue comes from ads. Additionally, 25% of ad revenue comes from promoted and sponsored posts, with 21% of all posts on Xiaohongshu being sponsored content.
Who are the Target Audience of Xiaohongshu Ads
According to 2023 statistics, Xiaohongshu has over 200 million monthly users, with 68% being women. Also, 72% of users are young online shoppers between 18 and 35 years old, and half of Xiaohongshu’s users live in first-tier and second-tier cities in China such as Beijing, Shanghai, Shenzhen, Guangzhou… making it ideal for brands targeting young Chinese consumers.
How to Advertise Effectively on Xiaohongshu in 2024
First, Open a Xiaohongshu Business Account
Having a business account on Red can make your brand look more trustworthy, attract more attention, and boost sales over time. It also provides access to special advertising tools that a personal account cannot use.
Find the complete guide for opening a Xiaohongshu business account here.
Then, Do Market Research and Choose the Right Xiaohongshu Ads Methods
For B2C small to medium businesses, Xiaohongshu search ads and in-feed ads are the two ideal choices to drive traffic and boost sales.
Xiaohongshu Search Ads
Search ads appear when users search for something on Xiaohongshu. These ads match the keywords entered by the user and are closely related to the user’s immediate interests or needs. Brands can choose keywords that fit their products, create ad content, and bid on the keywords.
Advantages
- Large user flow, with 30% of users utilizing Xiaohongshu as a search engine
- Highly targeted, reaching users with specific intentions
- High click conversion rates due to users actively searching for related items
Disadvantages
- High competition for popular keywords, which can be costly
- Requires constant updating of keywords and ad content to remain effective
- Best for users who know what they’re looking for, not ideal for new brands
Xiaohongshu In-Feed Ads
In-feed ads appear while users browse Xiaohongshu content, mixed with other user posts, usually as pictures or videos, with a “sponsor” or “advertising” watermark on the bottom right corner of the thumbnail.
Based on user preferences, Xiaohongshu shows related ads. These ads mainly appear on the discovery page and are seen without users actively looking for them. They can target users by age, gender, location, and more.
Here are steps to access this feature:
1. View the thumbnail of the note with “sponsor” or “advertising” watermark
2. Click to enter the note’s detail page
3. Click on the CTA (which can be a private message page, an H5 page, or a product detail page)
Advantages
- Native ad format blends with user content, making them more acceptable and attracting new consumers
- Effective for telling brand stories and showcasing products, and can improve brand image
- Reaches a large audience, with lower costs compared to other ads
Disadvantages
- Users may not click as much since they are not actively searching for ads
- Success depends heavily on the quality and creativity of the content, requiring continuous improvement
- High competition for the best spots, which can be expensive
Conclusion
Xiaohongshu advertising has significant potential in 2024. For B2C small to medium businesses new to the Xiaohongshu market, in-feed ads can reach more audiences and build the brand image at a more affordable price.
Start exploring Xiaohongshu’s advertising opportunities and see how it can fit into your marketing plan.
Still, find it difficult?
Feel free to reach out! Our team can help you create and manage effective Xiaohongshu ads that resonate with your audience and boost your brand visibility. Let’s work together to grow your business! 🚀
If you found value in this post, there are more ways I can help you!
- Follow me on Instagram @chinamarketingzl for behind-the-scenes insights into my business and Xiaohongshu tips.
- Check out my YouTube channel HERE for more free educational content.
- Visit my website at www.chinamarketingzl.com to see how we can work together.
- Email me directly for help at zoe@chinamarketingzl.com.
Meet Lily, the creative force behind today’s post. ✨
Lily Ruan, a digital marketer, fashion expert, and travel enthusiast, uses her creativity to improve our world. 🌍
She’s been a fantastic addition to my team, and I’m grateful for her hard work and fresh ideas.
Thank you, Lily!
