**Opening Statement by a Xiaohongshu Spokesperson:** Good morning, and thank you for joining us. Today, we are providing a detailed overview of the advertising revenue performance of Little Red Book, known domestically as Xiaohongshu. Our objective is to present a clear, factual, and comprehensive picture of this critical segment of our business, reflecting both our current standing and our strategic direction. Xiaohongshu has evolved significantly from its origins as a platform primarily focused on overseas shopping guides. Today, it stands as a comprehensive lifestyle community and decision-making engine, integral to the daily lives of over 200 million monthly active users. This unique positioning, at the intersection of community content, user-generated experiences, and commercial discovery, has created a distinctive and highly valuable environment for advertisers. While as a privately held company we do not disclose granular quarterly financials, we can confirm that our advertising revenue has demonstrated robust and sustained growth over recent periods. This growth trajectory is not an isolated phenomenon but is fundamentally underpinned by several key platform strengths and strategic initiatives. **I. The Foundation of Growth: A Trust-Based Community Ecosystem** The core of Xiaohongshu's appeal, both for users and advertisers, is its foundation of authentic, user-generated content. Unlike platforms driven primarily by algorithmic viral content or celebrity-focused feeds, Xiaohongshu thrives on "real life, real experiences." Users actively share detailed reviews, personal testimonials, and practical "how-to" guides across a vast spectrum of categories, including beauty, fashion, travel, food, parenting, and home decor. This creates an environment of high intentionality and trust. Users do not come to Xiaohongshu merely to passively scroll; they come to research, discover, and validate purchasing decisions. This "search-and-discovery" behavior transforms the platform into a powerful decision-making engine. For advertisers, this means their marketing messages are being delivered to an audience that is already in a considered, high-intent mindset. The value of an impression on Xiaohongshu is qualitatively different; it is an impression within a context of trust and commercial intent, which directly fuels advertising efficacy and, consequently, revenue. **II. Key Drivers of Advertising Revenue** Our advertising revenue growth is multifaceted, driven by demand across various formats and advertiser categories. **1. Expansion of the Advertiser Base:** We have seen a significant diversification in our advertiser portfolio. While established leaders in beauty and luxury goods remain cornerstone partners, we are witnessing accelerated adoption from sectors such as new energy vehicles, consumer electronics, travel and hospitality, and FMCG (Fast-Moving Consumer Goods). Furthermore, a growing number of emerging domestic brands view Xiaohongshu as an essential launchpad, leveraging the platform's community-driven nature to build brand credibility and achieve rapid market penetration. **2. Sophistication of Advertising Products:** We have systematically enhanced our advertising solutions to be more effective, measurable, and integrated. Key products include: * **Search Ads:** Placed directly within search results, these ads capture users at the peak of their purchase intent. When a user searches for "best serums for sensitive skin," an ad from a relevant brand at the top of the results is exceptionally potent. * **InfoFlow Ads:** These native advertisements appear seamlessly within a user's content feed. Designed to mimic the look and feel of organic community notes, they ensure a non-disruptive user experience while delivering high visibility for brands. * **Spotlight Ads:** Appearing as the first content a user sees upon opening the app, these full-screen video or image ads provide high-impact brand exposure. * **KOL/KOC Collaboration Management:** While not direct ad revenue, our platform's ecosystem for connecting brands with our vast pool of Key Opinion Leaders (KOLs) and Key Opinion Consumers (KOCs) is a critical component of the commercial flywheel. Our official marketing platform, "Xingtu," facilitates these partnerships, ensuring that influencer marketing campaigns are strategic, scalable, and their ROI is measurable, thereby reinforcing the overall value proposition to advertisers. **3. Advanced Targeting and Measurement:** Leveraging deep insights into user interests, behaviors, and content interactions—always in strict compliance with data privacy regulations—we enable advertisers to reach highly specific audience segments. Brands can target users based on nuanced lifestyle interests, past engagement patterns, and declared purchase intentions. Our measurement tools provide advertisers with clear data on campaign performance, including not just clicks and impressions but also deeper metrics like community engagement, sentiment analysis, and sales lift studies conducted with partners, which prove the platform's direct impact on business outcomes. **III. Navigating Challenges and Upholding Integrity** We are acutely aware that the very source of our strength—user trust—is a fragile asset that must be protected. The authenticity of our community is our highest priority. We actively manage the platform to maintain a healthy balance between commercial content and organic user experience. This involves: * **Clear Advertising Labeling:** We mandate that all paid partnerships and promotional content are clearly labeled as "Ads" or in partnership with a brand. This transparency is non-negotiable and helps users distinguish between organic recommendations and commercial messaging. * **Algorithmic Integrity:** Our content recommendation algorithm is designed to prioritize value and authenticity, not just engagement. We continuously refine it to surface high-quality content from both ordinary users and creators, ensuring that the feed remains relevant and trustworthy. * **Combating Inauthentic Behavior:** We have dedicated teams and automated systems to detect and remove fake reviews, spam, and any form of manipulative marketing that could erode user trust. We believe that a principled approach to monetization is not a constraint on growth but a prerequisite for sustainable, long-term growth. Advertisers benefit immensely from being in a trusted environment; their messages are more likely to be received positively and acted upon. **IV. Future Outlook and Strategic Priorities** Looking ahead, we are confident in the continued strength of our advertising revenue stream. Our strategic focus will center on several key areas: 1. **Deepening E-commerce Integration:** We will continue to blur the lines between content and commerce, enhancing features that allow users to move seamlessly from discovering a product in a note to purchasing it, whether within our own ecosystem or through partner platforms. This closed-loop capability significantly enhances the value proposition for performance-oriented advertisers. 2. **Investing in Video and Live Streaming:** Short-form video and live streaming are increasingly popular content formats on Xiaohongshu. We are investing in tools and incentives for creators to produce high-quality video content, which in turn opens new, dynamic avenues for video-based advertising and sponsored live streams. 3. **Global Brand Expansion:** We see substantial opportunity in further penetrating the market of international brands seeking to connect with the sophisticated, trend-aware Chinese consumer. Our platform is uniquely positioned to help these brands tell their stories and build cultural relevance. 4. **Technology and AI Innovation:** We will continue to invest in our advertising technology stack, utilizing AI and machine learning to further improve ad targeting precision, automate campaign optimization, and provide even more sophisticated attribution modeling for our partners. In conclusion, the growth in Xiaohongshu's advertising revenue is a direct reflection of the platform's unique value in the digital landscape. It is a testament to the power of a trusted community, the high commercial intent of our users, and our commitment to building advertising solutions that are effective for brands and respectful of the user experience. We are building a sustainable and evolving ecosystem where community, content, and commerce coexist in a mutually reinforcing cycle. Thank you. We will now open the floor for questions.
关键词： The Technical Architecture and Revenue Models of Modern Monetizable Web Platforms Unlock Your Revenue Potential The Ultimate Guide to Monetization Through Advertising Unlock Your Earning Potential The Ultimate Collection of Free Advertising and Money-Making Software The Ultimate Guide to Maximizing Your Earning Potential Online
