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Can AI, combined with Wu Yongming's repeated mention of "full site promotion", become a new engine for Taobao's growth?

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Alibaba Mama's "full site promotion" has made new progress.
On July 2nd, Alibaba Mama revealed that its "full site promotion" will be fully launched in the near future. The Daily Economic News reporter learned that the core technical support behind the full site promotion is LMA (Large Model for Advertising). According to the official statement, the breakthrough of this large model lies in its ability to accurately grasp consumer consumption needs based on multimodal models.
Previously, in April of this year, Alibaba Mama stated that this product would be fully integrated into Taobao's search and recommendation resources, with traffic channels including search result pages, homepage guessing your favorite information flow, and during purchase guessing your favorite fields, providing a full site traffic operation solution for products, and breaking through Taobao's free and paid traffic pool barriers.
In the latest quarter (Q4 of fiscal year 2024) Alibaba financial report conference call, Alibaba Group CEO Wu Yongming repeatedly mentioned full site promotion. He stated that for achieving "simpler advertising for more small and medium-sized advertisers to achieve business growth," full site promotion is currently an important product for Alibaba.
At that time, Wu Yongming mentioned that the promotion of the entire site was in the internal testing stage of small-scale customers, and the core requirement of "full site promotion" was to achieve business growth while ensuring the ROI of customer investment. "Therefore, we are still adjusting the algorithm model, training the model for a longer time, and improving the efficiency of ROI guarantee for customers on the basis of more customer investment data.".
The reason why the outside world pays attention to "full site promotion" is related to Alibaba's key growth potential in CMR (customer management revenue). On May 14th, Alibaba Group released its Q4 and full year results for fiscal year 2024. In that quarter, Taobao and Tmall achieved double-digit growth in GMV, and customer management revenue attributable to Taotian Group increased by 5% year-on-year.
During the financial report conference call, Alibaba's CFO Xu Hong also stated that Alibaba is continuously optimizing commercial products and will gradually launch these commercial products, which will help improve return on investment (ROI) and ultimately increase merchant penetration. "Especially for small and medium-sized enterprise merchants, they can also increase their spending on commercial products."
According to a reporter from the Daily Economic News, during the Tmall 618 period, compared to homogeneous products that were not fully promoted on the entire site, the promotion on the entire site brought a 105% increase in traffic for merchants, a 43% increase in transaction volume for leveraged products, and helped 130 of the first batch of internal testing merchants achieve transactions exceeding 10 million.
The official launch of the full site promotion means that Alibaba Mama is trying to use AI to innovate commercial products and leverage growth.
On that day, Shu Yang, the General Manager of Alibaba Mama Commercial Operation Center and Marketing Department of Taotian Group, stated in a speech that consumption has entered a new era of value consumption, with more diverse definitions of consumer value and a surge in online browsing frequency. However, the duration of staying at a single product or content is getting shorter and shorter. To quickly and accurately acquire consumers, AI technology is a powerful tool.
As Alibaba Mama has stated, it is using AI big model technology to optimize advertising algorithms and continuously improve the accuracy of people goods matching. Until now, the extent to which Alibaba's "AI driven" strategy can drive performance growth can be quickly determined by the initial results of the next stage of promotion on the entire site.
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