Weibo marketing is an effective way to reach out to potential customers. But not everyone is successful at achieving this goal.
Rachel Daydou has been doing marketing in China for seven years. Starting out as the brand manager for ABinBev, she went on to become a project manager for a big fashion retail group. She then went on to be a founder of a start-up called Lihaoma.
With skills in reading and writing Mandarin, she has worked alongside the locals in Chinese companies where she is often the only foreigner. While she doesn’t pretend to be an expert in marketing in China, she has the theoretical and professional background on the topic.
Her start-up Lihaoma’s value proposition is to boost brands’ engagement rates through mini-games and branded rewards. Their clients are Chinese small to medium-sized Taobao stores who uses their own mobile app and SaaS website.
As a brand, their mission is to help their clients increase visibility through all channels and means possible, including Weibo. Because of this, they went on to experiment on how Weibo marketing will affect their clients’ engagement rates.
Numerous articles that talk about the power of Weibo marketing are available online. So they researched about case studies of successful brands which used Weibo for branding, engagement, and sales. Among these are Best practices in Chinese microblog communications. They also looked into guidelines such as 7 steps to Weibo success.
The team spent their time educating themselves about how to market in Weibo. Because of this, they became willing to invest in the channel. They believed that Weibo was one of the most powerful tools you can use to acquire new users.
As 95% of startups are failing, it feels fair to showcase a real-world failure case for once, as it might be much closer to the reality than all those magic overnight successes.
They started an experiment where they spent twelve weeks investing in Weibo marketing. The posts in the channel included free gifts that users can win. These posts usually included the brand’s images with links directing them to play the mini-games.
Here’s an overview of their results:
Being Lean Startup practitioners, Rachel’s team surely didn’t want to see a bunch of vanity metrics.
They wanted to get into the actionable metrics. So here is the same story with actionable metrics this time. Check out this blog post by Tim Ferris and Eric Ries for further reference.
Here is the exact % of engagement compared to views.
|Engagement level 1 (Likes)||0,21%|
|Engagement level 2 (Reposts)||1,70%|
|Engagement level 3 (New fans)||0,02%|
|Engagement level 4 (Clicks on link)||0,02%|
|Engagement level 5 (Downloads)||0,00%|
Over time, the low engagement rate decreased further. Thus, the increase in engagement never correlated with the increase in views. In fact, the posts never managed to get any real engagement from Weibo.
Here’s a preview of the experiment’s results on a weekly basis.
|# posts||Experiment||Result (# views)|
|Week 1||4/day||Post Weibo more consistently||+30%|
|Week 2||2/day||Comment on hot topic||+10% to 50%|
|Week 3||Weekdays: 2/day, Weekends: 4/day||Repost famous brands’ weibo||+20%|
|Week 4||2/day||@gift brand||+30% to 100%|
|Week 5||1 every 2 days||Pay weibo package||+300%|
|Week 6||4/day||Pay for each Weibo to be repost||+300% – 1000%|
|Week 7||2/day||Mention famous brands: Apple, YSL, Chanel||+100%|
|Week 8||2/day||Create our own topic||0%|
|Week 9||2/day||Comment on KOLs post and like other posts||+30%|
|Week 10||2/day||Post winners’ picture||+30%|
|Week 11||2/day||Clearly write which gift can be won||0% clicks on link|
|Week 12||2/day||Clearly write how to win the gift||0% clicks on link|
The team also invested a small amount of cash into Weibo. Here are the costs of their expenses.
They also invested on manpower to formulate and execute the strategy.
|Weekly||Total (12 weeks)|
|Research, plan & report||1||12|
Some might argue that the team’s understanding of the market or their effort is limited. Others may also say that there wasn’t enough investment or that the experiments were stupid. And they might probably be right.
But the reality is, start-ups might simply not have enough resources to invest on expensive Weibo marketers. If your focus is on lean development, investing in something that’s not yielding clear ROI is hard to justify. Especially if you are a startup with a core product and value proposition that is not social media.
After twelve weeks, Rachel’s team came up with the following conclusions:
Assumption 1: Weibo can support UA => FALSE
Assumption 2: Getting more views and being more active will increase engagement => FALSE
Key Insight 1: Most efficient initiatives cost money
Key Insight 2: Weibo is useful to reassure merchants
Decision 1: Reduce to minimum money and time investment on Weibo
Decision 2: Continue being active to support merchant acquisition
A key insight is that Weibo is slowly but surely closing its ecosystem to other platforms. As a further step towards excluding outside platforms and monetizing further their user basis, Weibo implemented new rules concerning Weibo KOLs, including for example the very clear “All posts with external links will receive a 20% media exposure penalty”.
Failures are a critical part of the learning process. Rachel and her team hope that brands who are considering on investing in Weibo marketing find these data helpful.
If you believe that learning real startup stories, fuck ups and all is a more efficient way to make your own startup successful, get in touch with Rachel on Linkedin.