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Xiaohongshu Programmatic Advertising: How Automated Ad Buying Works on XHS

Date Published

Table Of Contents

1. What Is Programmatic Advertising on Xiaohongshu?

2. Juguang (聚光): XHS's Programmatic Ad Platform

3. The XHS Ad Ecosystem: Choosing the Right Platform

4. How the Juguang Auction Works: eCPM and Bidding Models

5. Automated Ad Delivery: Juguang's Smart Campaign Tools

6. Audience Targeting Layers in Juguang

7. Ad Formats Available Through Programmatic Buying on XHS

8. The KFS Framework: Where Programmatic Fits

9. Can International Brands Run Programmatic Ads on XHS?

10. Best Practices for XHS Programmatic Campaigns

11. How AllXHS Can Help

Most international marketers approach Xiaohongshu (XHS) thinking first about KOL partnerships and organic content seeding. Paid media on the platform — and specifically how automated, programmatic ad buying actually works — is far less understood, yet it is increasingly where brand budgets are going. With over 300 million monthly active users and nearly 600 million daily search queries recorded in Q4 2024, XHS has quietly evolved into one of China's most sophisticated programmatic advertising environments. The platform's official ad system, Juguang (聚光), operates on real-time auction mechanics, automated bidding models, machine-learning-driven delivery optimization, and layered audience targeting that rivals anything available on Western platforms. For international brands planning to invest in paid media on XHS, understanding how programmatic buying actually functions — the auction logic, the bidding models, the targeting capabilities, and the automation tools — is essential before committing budget. This guide explains exactly how automated ad buying works on Xiaohongshu, what platforms are available, how the auction is won, and what international brands need to know to run effective programmatic campaigns.

What Is Programmatic Advertising on Xiaohongshu? {#what-is-programmatic}

Programmatic advertising refers to the automated buying and selling of digital ad inventory through real-time auction systems, machine learning optimization, and data-driven targeting — as opposed to manually negotiating placements directly with publishers. On Xiaohongshu, this infrastructure is built into Juguang (聚光), the platform's official advertising and data analytics system. When you run a campaign through Juguang, you are not manually selecting which users see your ad or negotiating fixed-price placements. Instead, you define your campaign objective, set a budget and bid strategy, configure your audience targeting, and Juguang's algorithms automatically enter your ads into real-time auctions for each available impression across the platform's feed and search placements.

What makes XHS programmatic advertising distinctive compared to platforms like Meta or Google is the content-native context in which ads are served. Juguang is built around Xiaohongshu's dual role as both a content discovery engine and a product search tool — so the automated delivery system is designed to match ads with users at the moment they are most receptive, whether that is during browsing or active product research. This is not passive interruption advertising; it is intent-informed, algorithmically matched placement within a community that actively uses the platform to inform purchasing decisions.

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Juguang (聚光): XHS's Programmatic Ad Platform {#juguang-platform}

Juguang, known internally at Xiaohongshu as Aurora, is the platform's enterprise-level advertising and data analytics hub. It integrates search advertising, feed advertising, audience management, creative optimization, and performance analytics into a single system. Advertisers access Juguang via ad.xiaohongshu.com, and all campaign creation, budget management, bid setting, and performance monitoring happens within this interface.

At its core, Juguang uses the platform's first-party behavioral data — search queries, content interactions, purchase history, and browsing patterns — to power its targeting and delivery algorithms. Unlike third-party cookie-dependent programmatic systems common in Western markets, Juguang runs entirely on Xiaohongshu's own rich first-party data. This is a significant advantage in a privacy-conscious advertising landscape, and it means the targeting signals are highly accurate and directly tied to observed purchase intent on the platform itself. The system supports data tracking from ad exposure all the way through to conversion, enabling full-funnel attribution for campaigns running inside the XHS ecosystem.

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The XHS Ad Ecosystem: Choosing the Right Platform {#ad-ecosystem}

Before diving into Juguang's mechanics, it is worth understanding that Juguang is not the only way to buy paid media on Xiaohongshu. The platform offers a suite of advertising tools positioned at different levels of sophistication and budget:

Juguang (聚光): The full enterprise-grade programmatic platform. Designed for brands with mature digital advertising capabilities and complex, high-conversion campaign needs. Supports the widest range of ad formats, the most advanced targeting, and full bidding customization. This is the system this guide focuses on.

Juguang Lite (聚光Lite) / Shutiao (薯条): A simplified, self-serve boost tool built directly into the XHS app, accessible to verified business accounts without needing to use the full Juguang interface. Better suited to newer advertisers who want to amplify individual posts and test content performance with smaller budgets before scaling.

Chengfeng / Qianfan (乘风/千帆): An all-in-one performance platform built specifically for XHS e-commerce sellers. Leverages Xiaohongshu's rich e-commerce data and includes an ad performance guarantee mechanism — if a campaign falls short of its promotional goals, the platform offers compensation calculated against benchmark ROI from comparable campaigns.

For international brands serious about programmatic campaigns at scale — targeting, bidding precision, creative testing, and cross-format delivery — Juguang is the right platform. Shutiao serves as a useful starting point for content validation, while Chengfeng is the go-to tool once an XHS store is established and conversion optimization becomes the primary goal.

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How the Juguang Auction Works: eCPM and Bidding Models {#auction-mechanics}

Juguang operates on a real-time auction system where ad inventory is allocated based on an eCPM (Effective Cost Per Mille) calculation. The core formula is:

eCPM = Bid × Estimated CTR × Estimated Conversion Rate × 1000

This means that winning an auction on Juguang is not purely about bidding the highest amount — it is about the combined score of your bid, your predicted click-through rate, and your predicted conversion rate. An ad with strong creative relevance and proven engagement can win impressions against higher bids because its estimated performance multiplies its effective value in the auction. This is a critical insight for international brands: creative quality and audience relevance directly influence your cost efficiency in the XHS programmatic system.

Juguang supports several bidding models, which should be selected based on campaign objective:

CPC (Cost Per Click): You pay each time a user clicks your ad. Best suited for driving traffic to brand pages, product listings, or store pages where the click itself signals intent.

CPM (Cost Per Mille): You pay per 1,000 impressions delivered. Appropriate for upper-funnel brand awareness campaigns where maximizing visibility is the primary goal rather than immediate action.

oCPM / CPA (Optimized CPM / Cost Per Action): The system optimizes delivery toward users most likely to complete a defined conversion action (purchase, lead form submission, private message, etc.) while charging on an impression basis. This is the most automation-heavy model and is generally preferred for performance campaigns because Juguang's machine learning determines which users to show ads to in order to hit your target cost per conversion.

The bidding system was updated in May 2025 to provide more competitive suggested bids in the search field and introduce bidding percentile references at the 50th and 20th percentiles for non-search placements — giving advertisers clearer benchmarks for competitive bid-setting without having to rely entirely on manual estimation.

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Automated Ad Delivery: Juguang's Smart Campaign Tools {#automated-tools}

In early 2025, Xiaohongshu formally released a suite of automated ad delivery products through Juguang, signaling a clear move toward reducing manual campaign management for brands operating at scale. The tools released include:

Universal Ad Delivery (通投广告): Allows a single campaign to automatically serve across both feed and search placements, with Juguang's algorithm determining the optimal mix of placements to hit campaign objectives. This removes the need to manage separate feed and search campaigns and lets the system allocate budget dynamically based on real-time performance data.

Search Structuring (搜索结构化): An automated tool that helps brands set up and organize search campaigns based on structured keyword groupings, reducing the manual effort required to build out keyword strategies for search ad coverage.

Nobid (免出价): A fully automated delivery mode that removes manual bidding entirely. Instead of setting a target bid, the advertiser simply sets a budget and objective, and Juguang's algorithm manages the bidding process dynamically to maximize results within that budget. This model is similar to "Advantage+ campaigns" on Meta or "Smart Bidding" on Google — it trades granular bid control for simplified setup and machine-learning-driven optimization.

The platform also employs a continuous PDCA (Plan-Do-Check-Act) optimization loop, using real-time data monitoring, campaign-level analysis, user persona insights, and creative performance decay signals to guide ongoing optimization. The creative optimization layer was upgraded in May 2025 to dynamically display different conversion copy to different user segments, improving conversion rates without requiring advertisers to manually A/B test every creative variation.

These automation features are particularly relevant for international brands that may not have dedicated local teams managing campaigns day-to-day. The more automated the delivery system, the lower the operational burden — but it also means that campaign setup, initial targeting, and creative quality matter even more, since the algorithm amplifies whatever inputs it is given.

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Audience Targeting Layers in Juguang {#audience-targeting}

Juguang's targeting capabilities are one of its most powerful — and least understood — features for international marketers. The system supports multiple audience layers that can be used independently or stacked for greater precision:

Demographic Targeting: Target users by age, gender, city tier, and language preference. Particularly important for luxury and premium categories where first and second-tier city concentration drives disproportionate purchasing power.

Interest and Category Targeting: Juguang categorizes user interests across dozens of verticals based on content consumption patterns — beauty, fashion, travel, food and beverage, parenting, home décor, fitness, and more. Interest targeting aligns your ads with users whose organic behavior already demonstrates category affinity.

Behavioral Targeting: This layer uses Xiaohongshu's first-party behavioral data — search history, product page visits, content saves, shopping cart activity, and completed purchases — to identify users based on their demonstrated purchase readiness. High-intent behavioral targeting focuses on users who have searched for specific products or categories recently, capturing them while active consideration is underway.

Keyword Targeting (Search Ads): For search placement, advertisers bid on specific keywords that trigger ad delivery when users actively search for related terms. This is the highest-intent targeting available on the platform, equivalent in principle to Google Search advertising but operating within a community of users who are specifically seeking lifestyle and product content.

Retargeting: Juguang allows you to re-engage users who have previously visited your brand page, engaged with your content, or visited your store without converting. This is systematic follow-up built into the programmatic system — rather than hoping previous visitors return organically, you can build re-engagement audiences and serve them sequential messaging designed to address conversion barriers.

Lookalike Audiences: Once you have accumulated sufficient conversion data, Juguang can generate lookalike audiences that mirror your highest-value customers' platform behaviors. Lookalike targeting extends campaign reach to new users who share characteristics with your existing buyers, maintaining relevance while scaling beyond your known audience pool.

Geo-Radius Targeting: A more recent addition to Juguang's targeting suite, geo-radius targeting allows advertisers to reach users within a defined radius around specific commercial districts — selectable at 3km, 5km, or 10km coverage. This is particularly valuable for brands with offline retail presence who want to connect paid digital exposure with real-world foot traffic.

Competitor Account Targeting: Juguang now also allows advertisers to directly target audiences associated with competitor accounts, enabling brands to reach users who have already demonstrated interest in their category by following or engaging with competing brands.

Targeting, bidding strategy, and creative quality are the three core operational variables that determine campaign effectiveness in Juguang. Targeting and bidding determine who sees your ad and at what cost; creative quality determines whether those exposures convert. Getting all three right simultaneously is what separates efficient programmatic campaigns from expensive ones.

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Ad Formats Available Through Programmatic Buying on XHS {#ad-formats}

Juguang supports several ad formats, each serving different stages of the purchase journey:

Feed Ads (信息流广告): Native ads that appear within the XHS content discovery feed, blending with organic posts. They support image, multi-image card, and video formats. Feed ads are particularly effective when built on content that has already demonstrated organic traction — posts with high save rates and strong engagement consistently outperform ads built on untested creative when amplified through Juguang's automated delivery system.

Search Ads (搜索广告): Ads served within Xiaohongshu's search results when users query specific keywords. Because users searching on XHS are typically in active research or purchase mode, search ads capture the highest-intent audience segment on the platform. They are the logical complement to feed ads: feed ads build the awareness that generates search behavior, and search ads capture the intent that awareness creates.

Video Ads: Video content that appears within the full-screen autoplay video stream users encounter after clicking into a video post. These integrate seamlessly into the viewing experience and deliver brand messaging without requiring user interaction to initiate viewing.

Open-Screen / Brand Takeover Ads: High-visibility formats that appear when users open the Xiaohongshu app, providing maximum exposure for new product launches or brand awareness campaigns. These are typically reserved for brands with larger media budgets and are often managed through direct commercial agreements rather than pure auction-based programmatic buying.

For most international brands running performance-oriented programmatic campaigns, Feed Ads and Search Ads — purchased together through Juguang — form the core of an effective paid media strategy on XHS.

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The KFS Framework: Where Programmatic Fits {#kfs-framework}

Xiaohongshu's official recommended approach to marketing is the KFS model: KOL content (Key Opinion Leader/达人内容), Feed Ads (信息流), and Search Ads (搜索广告). This framework maps the full consumer journey across three stages — the Browse stage (浏览场), the Search stage (搜索场), and the Purchase stage (消费场) — and programmatic buying through Juguang covers the paid layer of this model entirely.

Understanding where programmatic fits within KFS prevents a common strategic error: treating Feed Ads and Search Ads as alternatives rather than complementary systems. KOL content generates discovery and builds trust at the top of the funnel. Feed Ads (purchased programmatically through Juguang) amplify the reach of that content — and of your best-performing organic brand posts — to broader audiences with similar behavioral profiles. Search Ads then capture the high-intent users who were exposed to your brand through KOL and feed content and are now actively researching or comparing products.

Running programmatic campaigns without organic and KOL content working alongside them limits effectiveness significantly, because the algorithm has less high-quality content to amplify and fewer behavioral signals to use for targeting optimization. The strongest XHS programmatic campaigns are built on a content foundation, not in isolation from one. For international brands planning their first XHS paid media investment, establishing organic content and KOL activity before scaling Juguang spend is consistently the more efficient path to positive ROAS.

Explore industry-specific Xiaohongshu marketing strategies across beauty, fashion, F&B, and more to understand how the KFS model applies within your vertical.

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Can International Brands Run Programmatic Ads on XHS? {#international-brands}

This is one of the most commonly misunderstood aspects of XHS advertising for international marketers. The short answer is: yes, but with important structural requirements.

Xiaohongshu allows overseas entities to register a Professional Account (专业号) directly without establishing a Chinese subsidiary. However, a functioning Juguang account can only be opened by a Chinese entity — the platform does not currently support foreign entities opening Juguang accounts directly. Additionally, the entire Juguang interface is in Simplified Chinese, and the platform operates on a prepaid balance model that requires CNY-denominated funding.

This means that international brands typically need to work through a qualified local agency or operating partner that holds a Chinese business entity. That partner can open the Juguang account, manage compliance and certification requirements, fund the account balance, and operate campaigns on the brand's behalf. For regulated product categories — including cosmetics, healthcare, food, and financial services — additional industry certifications must be submitted and approved before any campaigns in those categories can go live.

For brands that want to build internal capability over time while getting campaigns live quickly, accessing expert Xiaohongshu marketing services through a specialist partner is the most practical first step. Free Xiaohongshu resources are also available to help your team build platform knowledge before engaging a managed service.

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Best Practices for XHS Programmatic Campaigns {#best-practices}

Getting programmatic campaigns live on Juguang is the starting point. Getting them to perform efficiently requires attention to several platform-specific dynamics that differ meaningfully from Western programmatic environments:

Lead with proven content, not untested creative. Juguang's eCPM auction rewards ads with high estimated CTR and conversion rates. Content that has already performed well organically — measured by saves, positive comments, and shares — enters the auction with a behavioral performance signal that untested creative lacks. Identify your best-performing organic posts or KOL content before allocating programmatic budget, then use Juguang to amplify what is already working.

Match your bidding model to your campaign objective. Use CPM for awareness campaigns where impression volume is the goal. Use CPC when driving qualified traffic to a product or store page. Use oCPM/CPA when optimizing for a specific conversion action — this is where Juguang's automation delivers the most value, as the algorithm focuses delivery on the users statistically most likely to complete your target action.

Build creative in Simplified Chinese, written natively. XHS users have low tolerance for content that looks like a direct translation of English ad copy. Ad creative should match the aesthetic and voice of the platform's organic content — detailed, visually appealing, and written from a peer-recommendation perspective rather than a brand announcement perspective. Ads that align with trending platform formats and local consumer values consistently outperform those that do not.

Use keyword research to build your search ad strategy. Search Ads depend entirely on keyword relevance. Conduct thorough native keyword research using XHS's own search suggestion data and category-specific trending terms before building out your search campaign structure. Optimize post titles, descriptions, and hashtag choices with the same keywords to reinforce both paid and organic visibility simultaneously.

Refresh creative regularly to prevent decay. Juguang's optimization system includes material performance decay warnings — signals that a particular creative is losing effectiveness as the same audience sees it repeatedly. Plan for creative refresh cycles every two to three weeks for always-on programmatic campaigns, and maintain a library of tested creative variants to rotate.

Plan budget uplifts around major shopping events. Chinese shopping festivals — 618 (June), Double 11 (November), Double 12 (December), and Golden Week — see significant spikes in advertiser competition and therefore auction prices. Increasing bids by 20 to 30 percent during peak periods is typically necessary to maintain competitive ad delivery volume and avoid impression share loss at exactly the moments when purchase intent is highest.

Allow the algorithm sufficient data before optimizing. Automated delivery models like Nobid and oCPM require a learning period during which the algorithm accumulates conversion data to optimize against. Avoid making significant bid or targeting changes during this period. The more conversion data the system accumulates, the more precisely it can allocate delivery toward high-probability users.

Xiaohongshu's programmatic advertising infrastructure through Juguang is more sophisticated than most international marketers realize. The eCPM auction model, automated delivery tools like Nobid and Universal Ad Delivery, layered targeting capabilities, and the platform's rich first-party behavioral data create a programmatic environment that is fully competitive with Western platforms — but operates by its own rules, within a Chinese-language interface, and with structural requirements that make local partnership effectively essential for most international brands.

The brands that will win on XHS programmatic advertising are those that treat it as what it actually is: a content-native, intent-driven programmatic system where creative quality, audience signal, and organic content work together as a system — not a traditional ad network where spend alone drives results. Building that foundation takes expertise in both the platform mechanics and the cultural context. That is exactly the gap that AllXHS is built to close.

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