NIO executive Ma Lin retweeted Li Xiang’s Weibo post, indicating that the advertising expenditure for three models of Li Auto‘s vehicles on Douyin platform this year should be around 90 million yuan (approximatly ＄13 million). The largest expense is not on Weibo platform. At the same time, he reminded everyone to pay attention to research and development costs and cost-effectiveness.
Some media outlets are calling Weibo’s CEO online, asking for their opinion on Li Auto‘s marketing strategy.
Regarding this, @来去之间 (CEO of Weibo) responded: Isn’t it normal to invest in Douyin? I have said it many times before, the choice of advertising actually depends on the channel. The distribution channels of new energy vehicles have shifted from 4S dealerships on the outskirts of cities to brand stores in urban shopping malls. At this point, it is no longer possible to purchase leads from dealerships. Instead, we should focus on studying HMOV’s user brand mention rate. We should invest in platforms that can ‘brainwash’ mall users. I hope NIO is not still buying leads.
As a comparison, Li Auto‘s financial report shows that in the third quarter of 2023, Li Auto‘s marketing expenses were 5.31 billion yuan (approximatly ＄0.7 billion), an increase of 60.2% year-on-year; while in the third quarter of 2023, NIO‘s sales and general administrative expenses were 3.609 billion yuan (approximatly ＄0.5 billion).