At one time, Weibo (often referred to as China’s equivalent of Twitter) and WeChat were both pillars of Chinese social media marketing. These platforms were mentioned side by side when brands and businesses considered tapping into the Chinese market. However, Weibo’s role has shifted significantly in recent years, particularly as new competitors have emerged, altering the digital marketing landscape.
In May 2024, Weibo released its financial report for the first quarter of the year, which shed light on the platform’s current status.
The company reported a total revenue of $395.5 million USD. The bulk of this revenue, around $339 million USD, came from advertising and marketing, its primary source of income.
While these numbers are still significant, they reflect a 5% year-over-year decline in this crucial revenue stream. Weibo was the only major Chinese internet platform to report a negative growth rate in its advertising and marketing business for the first quarter of 2024.
What are the key factors driving this downturn in Weibo’s advertising revenue?
1. The Shifting User Behaviour and Platform Competition
One of the most critical challenges facing Weibo is the evolution of user behaviour and the rise of alternative platforms such as RED (Little Red Book, also known as Xiaohongshu) and Douyin (the Chinese version of TikTok). These newer platforms have become immensely popular, offering users a more engaging and personalised experience.
Historically, users turned to Weibo’s trending topics and rankings (e.g., its “Hot Search” list) to find out what’s happening in the world. But with the increasing popularity of RED and Douyin, user habits have changed. On these platforms, users can simply swipe through a personalised feed, where content is automatically pushed based on their preferences. As a result, people no longer need to rely on Weibo’s top trending lists to stay informed. This shift means users are spending more time on newer platforms, leaving Weibo with less daily engagement.
Additionally, Weibo once thrived as a hub for following celebrity news, but even in this area, the platform is losing ground. Celebrities who previously relied on Weibo to engage with fans now also share their daily lives on RED.
This shift has attracted more users who are interested in seeing a more personal, less polished side of their favourite stars. While Weibo remains a platform for official celebrity updates, fans are gravitating toward other platforms that feel more authentic and intimate.
2. The Rise of “Fan Culture” and Different User Behaviour
Another factor contributing to Weibo’s advertising decline is the rise of “fan culture” and the increasing presence of marketing accounts. Weibo’s association with celebrity culture initially attracted users who were eager to keep up with the latest gossip and news about their favourite stars. Over time, this fan-driven culture evolved, giving rise to “fandom wars,” where groups of fans engage in heated debates, often turning the comment sections into battlegrounds.
In recent years, many users have complained that the platform has become increasingly “toxic.” Negative and aggressive comments have become more prevalent, particularly within celebrity-related discussions. This is further compounded by accounts that post controversial or sensational content solely for the sake of driving engagement. These posts tend to stir up emotions, creating a less welcoming atmosphere for casual users. The negative environment has made some users less willing to spend time on Weibo, contributing to the platform’s declining popularity.
A prime example of this growing negativity is the AI-powered “Comment Robot,” trained on publicly available content posted by Weibo users. The robot has gained notoriety for its biting, sarcastic remarks. For instance, if someone expresses their feelings of sadness or frustration in a Weibo post, the robot might reply with something like, “Don’t worry! Even though you’re really pitiful, nobody cares.” While meant as a humorous addition, it highlights the increasingly harsh tone found in Weibo’s comment sections, driving users away.
Weibo as a Marketing Option for International Brands – Is it still effective?
For Australian businesses and organisations eyeing the Chinese market, Weibo remains an option, but it may no longer be the best choice.
With the rise of RED, marketers have better alternatives that offer more engagement and a friendlier user environment. If a company is already using WeChat and RED and looking to broaden its reach, Weibo can still serve as an additional platform to target specific audiences.
However, it’s crucial for brands to closely monitor public sentiment and the tone of comments on Weibo. Managing brand reputation on the platform requires careful attention to user feedback and sentiment monitoring, as the environment can turn negative quickly.
Weibo’s journey from being a dominant platform in the Chinese marketing landscape to one that is grappling with competition and evolving user behaviours offers valuable insights into the ever-changing world of digital marketing.
While Weibo remains a viable option, its role has undoubtedly diminished, and brands must be mindful of the platform’s challenges when considering it as part of their overall marketing mix. If you need assistance to find out if Weibo is still an option for your business, please don’t hesitate to reach out to our marketing team for professional support. You can email us at info@chincommunications.com.au or call us at 1300 792 446.