Core Insights - The article discusses the challenges faced by content creators and e-commerce businesses in the current digital landscape, particularly the reliance on paid traffic to drive visibility and sales [1][3][6] Group 1: Industry Trends - Many content creators initially believed in fair competition but discovered that many successful accounts rely heavily on paid traffic, leading to a disparity in visibility and success [2][4] - The e-commerce sector is experiencing a significant shift, with a decline in the effectiveness of paid traffic strategies as the market becomes saturated and competitive [6][8] - The live-streaming e-commerce market in China saw a compound annual growth rate (CAGR) of 85.3% from 2019 to 2023, but this is expected to drop to 18% from 2024 to 2026, indicating a slowdown in growth [6] Group 2: Regulatory Changes - New regulations from the State Administration for Market Regulation will classify paid traffic expenses as advertising costs starting October 1, 2025, which will increase tax burdens for businesses that rely on these strategies [7][8] - Companies that previously viewed paid traffic as a cost will now face additional taxation if their advertising expenses exceed 15% of revenue, potentially leading to financial strain [7] Group 3: Business Strategies - Businesses must focus on improving product quality and brand experience rather than relying solely on paid traffic, as the latter is becoming less sustainable [10][11] - The article emphasizes the importance of content creation and brand experience as essential components for retaining customers and driving sales, rather than merely attracting them through financial incentives [13][15] - New opportunities may arise as businesses shift away from paid traffic strategies, with a potential focus on alternative channels and methods for customer engagement [15][16]