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A brand trader told us that the conversion rate of advertising

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According to Hootsuite research data, the potential user coverage of Instagram advertising has reached billion people in , and it will generate US billion in advertising revenue in In comparison, Xiaohongshu has more than million monthly active users. According to Gray Dolphin data, in May , there were about , brands advertising on Xiaohongshu, with about , notes and a total amount of nearly billion. Yuan. From the perspective of advertising revenuemonthly active users, Xiaohongshu’s advertising monetization ability is much worse than Instagram. If we look at valuationrevenue, the current valuation of Xiaohongshu is indeed around .


US billion , and Instagram faces global users and markets, including developed markets with stronger purchasing power, while Xiaohongshu Limited to the Chinese Internet market, the potential difference is even greater. Therefore, although the cur Armenia WhatsApp Number rent growth of Xiaohongshu is still very healthy, the community atmosphere is good, and more and more advertisers are testing the waters, the ceiling of advertising monetization may be getting closer and closer.  on Xiaohongshu is facing a decline. First, consumer willingness to purchase has declined. Second, there are more and more advertisements on the platform.





Third, the growth rate of new users seems to be slowing down. The relationship between brands and traffic is in a situation of more monks and less rice. There are also brand owners who have reduced their information flow advertising on Xiaohongshu, and instead bypass the platform and directly cooperate with KOLs and KOCs, which will further reduce the platform’s advertising revenue. Therefore, monetizing traffic more efficiently and deeply to increase revenue to support higher valuations is an issue that Xiaohongshu must consider.

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