Not traditional marketing, but Xiaohongshu Ads offer better ROI with precise targeting

In today's digital landscape, Xiaohongshu has emerged as a powerhouse for brands looking to connect with China's young, trend-conscious consumers. The platform's unique blend of social commerce and user-generated content has made it indispensable for marketing strategies. Recent data with 78.2% of young consumers relying on Xiaohongshu for fashion trends Consider LILANZ's "Ice Pineapple Shirt" campaign, which achieved a 400% increase in product searches by strategically leveraging Xiaohongshu's ecosystem. This success story highlights the importance of understanding these two distinct approaches and how to implement them effectively.

1. Defining Product Seeding and Commercial Marketing

Product seeding on Xiaohongshu Ads focuses on passive user engagement and awareness building. It aligns with the AIPS (Awareness, Interest, Purchase, Share) methodology, primarily targeting the Awareness (A) and Interest (I) stages. The goal is to create initial brand recognition and short-term memory among users who passively encounter product information. For example, a beauty brand might collaborate with micro-influencers to showcase a new serum in their daily routines, sparking curiosity without overtly pushing for sales.

Commercial marketing, on the other hand, is sales-driven and actively seeks user conversion through Xiaohongshu Ads. It covers the Interest (I), Purchase (P), and Share (S) stages of AIPS. Here, users actively seek product details, make purchases, and share their experiences. Tools like Xiaohongshu Ads' Juguang platform enable merchants to set up targeted "Product Promotion" campaigns. A case in point is MISS SIXTY's cashmere jeans promotion, which addressed specific pain points like warmth and style, resulting in a 527% surge in e-commerce searches. Unlike product seeding, commercial marketing demands precision in targeting and measurable ROI, often utilizing advanced features like smart bidding and conversion tracking.

2. Key Differences Between Product Seeding and Commercial Marketing

The contrast between these strategies emerges distinctly when analyzing their target audiences and engagement metrics. Product seeding casts a wide net, aiming for broad reach to build initial awareness. For instance, a skincare brand might partner with lifestyle bloggers to subtly feature a new moisturizer in "get ready with me" videos, targeting a general audience interested in beauty routines. The KPIs here are softer, such as note interactions (likes, saves, comments) and brand recall metrics.

Commercial marketing through Xiaohongshu Ads narrows the focus to users already showing purchase intent. It employs precision targeting tools like DMP audience packages and advanced filters to reach high-potential buyers. The campaign objectives shift to hard metrics like ROI, sales volume, and conversion rates. Take Yi's live streaming campaign: by optimizing content and targeting women aged 30+ in tier-1 cities, they achieved a 7x increase in viewership and a top-10 ranking during Double 11. The underlying difference lies in intent—product seeding plants the idea, while Xiaohongshu Ads harvest the results.

3. Spotlight on Commercial Marketing Tools

Xiaohongshu Ads offer robust tools for commercial marketing, with the Juguang platform standing out as a comprehensive solution for merchants. Juguang provides features like full-site intelligent advertising, search ads, and video stream placements, enabling refined operations for mature brands. Merchants can set up "Product Promotion" campaigns by selecting traffic placements, promotion targets (notes), and optimization goals. The platform also supports advanced targeting options, including smart targeting and audience packages, making it ideal for brands with specific performance goals.

Comparatively, Qianfan Promotion serves as a speed version for simpler, more efficient campaigns. It’s tailored for startup brands or novice merchants who prioritize ease of use over granular control. While Qianfan offers smart targeting and basic filtering, it lacks Juguang's depth in data analysis and advanced features. The choice between the two depends on the merchant's operational maturity—Juguang suits those demanding precision, while Qianfan appeals to those seeking quick, hassle-free setups.

Topkee enhances these native tools through specialized Xiaohongshu Ads services. Their expertise spans account certification (e.g., Blue V verification, customized homepage design), precise targeting (DMP, keyword, and information flow strategies), and content creation (graphic/video notes). For targeting, Topkee utilizes DMP system to curate audience packages based on behavioral and demographic data, while keyword targeting captures users actively searching for related terms. Their information flow ads combine Tongtou (general investment), intelligent targeting, and filters (age, region, etc.) for optimal reach.

Content-wise, Topkee’s team produces high-quality notes and videos tailored to platform trends, amplified by Juguang’s intelligent delivery system. Post-campaign, they provide granular analytics—note performance (views, interactions), conversion metrics, and fan insights (demographics, geography)—enabling continuous optimization.

4. Practical Guide to Setting Up Commercial Marketing Campaigns

Launching a successful Xiaohongshu Ads campaign requires a structured approach. Begin by setting up the promotion plan: choose traffic placements (e.g., 30% site-wide smart ads, 30% feed, 20% search, 20% video stream) and select promotion targets like collaboration notes or buyer notes. Optimization goals should align with campaign objectives—for instance, prioritize "product sales" for direct conversions. Cost control methods, such as manual bidding or automatic control, further refine the campaign's efficiency.

Best practices emphasize budget allocation and the learning period. Allocate budgets proportionally across placements, ensuring no single channel dominates unless performance justifies it. The learning period (3-7 days) is critical; Xiaohongshu Ads may fluctuate initially as the system identifies optimal audiences. Avoid premature adjustments—observe for at least three days before tweaking bids or budgets. For example, LILANZ allocated budgets to test multiple content matrices before scaling high-performing notes, ensuring stable campaign performance.

Topkee’s services extend beyond setup to include precise targeting and content optimization. Their DMP system leverages user attributes, life stages, and shopping habits to deliver ads to high-conversion audiences. Keyword targeting captures active users searching for related terms, while information flow and video streaming promotions amplify reach. For content, Topkee’s diverse team produces high-quality graphic and video notes, tailored to platform trends and brand narratives. Post-launch, their analytics tools track note performance (views, likes, shares) and conversion metrics, enabling real-time strategy adjustments. By combining professional account certification, localized insights, and data-backed optimizations, Topkee ensures Xiaohongshu Ads resonate with the platform’s unique user base, driving both engagement and sales.

5. Case Studies: Successful Implementations

LILANZ's "Ice Pineapple Shirt" campaign exemplifies the power of combining product seeding and Xiaohongshu Ads. By leveraging platform data, they identified women as key decision-makers for menswear and crafted a "boyfriend style" narrative. The campaign used a mix of scene soft placements, category exposures, and targeted blogger collaborations, resulting in a 400% spike in product searches and an 8% increase in female store visits.

MISS SIXTY’s cashmere jeans promotion focused on solving user pain points—balancing warmth and style. High-quality OOTD content, amplified by performance ads and comment guidance, drove a 68% rise in brand searches. Meanwhile, Yi’s live streaming success stemmed from content optimization and precise targeting. By refining note styles and profiling women over 30 in urban areas, they boosted viewership sevenfold, securing a top-10 spot during Double 11.

6. Common Challenges and Solutions

Campaign fluctuations during the learning period are a frequent hurdle. The solution lies in patience and diversification—run multiple differentiated Xiaohongshu Ads to increase the odds of reaching the right audience. Budget constraints can be mitigated by starting with a minimum effective budget and scaling winners. Creative competitiveness is another challenge; ads must balance click-through and conversion rates. For instance, Yi tested various note formats before settling on "monochromatic + multiple outfits" as the highest-converting style.

7. Future Trends

Influencer collaborations will grow in importance, with brands leveraging nano- and micro-influencers for authentic reach. AI and data analysis will enable smarter targeting, predicting user behavior more accurately. Live streaming is poised to expand as a conversion tool, blending entertainment with instant purchasing—a trend underscored by Yi’s success. Brands that integrate these trends while mastering the basics of product seeding and Xiaohongshu Ads will thrive on the platform.

Conclusion

Understanding the distinction between product seeding and commercial marketing is crucial for Xiaohongshu Ads success. While seeding builds awareness, commercial marketing drives conversions, with tools like Juguang and Qianfan catering to different needs. Brands like LILANZ, MISS SIXTY, and Yi demonstrate the power of data-driven strategies, precise targeting, and creative optimization. As Xiaohongshu Ads evolve, staying agile and leveraging emerging trends will be key. For brands ready to dive deeper, partnering with experts can unlock the platform's full potential.

Appendix:

• Xiaohongshu E-commerce Learning Center
• LILANZ Case Study
• MISS SIXTY Case Study
• Yi Live Streaming Case Study