Core Insights - The article highlights a significant misunderstanding among practitioners regarding the core logic of Douyin's advertising system, emphasizing that material quality scores account for over 70% of the impact on ECPM, while bidding only contributes less than 30% [1][2][4] Group 1: Algorithm and Material Quality - Douyin has transitioned from traditional tagging to a neural network-based recommendation system, prioritizing user experience over commercial monetization [2][4] - The algorithm's scoring system places a high emphasis on click-through rates (CTR) and conversion rates, with CTR being the more critical metric [4] - New materials receive exploratory traffic, where CTR's weight can exceed 80%, and as materials mature, the weight balances to approximately 60% for CTR and 40% for conversion [4][9] Group 2: Testing and Efficiency - Successful merchants utilize a methodology of extensive material testing before large-scale deployment, often creating multiple versions to identify the best-performing ones [5][9] - AI-driven tools, such as those developed by Zhixing Qidian, enhance the efficiency of material testing, increasing hit rates from 20% to over 60% and improving ECPM by 40% [7][9] Group 3: Continuous Optimization - ECPM optimization is a comprehensive process influenced by various factors, but material quality remains the most critical element for maximizing ROI [9][11] - The rapid evolution of Douyin's algorithms necessitates that businesses adapt their strategies promptly to maintain effectiveness, with some companies reporting a 35% improvement in ROI through proactive adjustments [9][11] Group 4: Competitive Landscape - The competition in Douyin's e-commerce sector is intensifying, yet opportunities exist for those who understand the platform's operational mechanisms and focus on enhancing material quality rather than merely increasing bids [11]