In-Depth Analysis of Bilibili's Strategic Transformation from "Open Loop" to "Closed Loop"

Based on the latest collected data and market information, I will provide an in-depth analysis of Bilibili’s strategic transformation from an “open loop” to a “closed loop” model and its implications.

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• Bilibili served as a traffic entry and content-driven product discovery platform, directing users to third-party e-commerce platforms such as Taobao and JD.com to complete transactions
• Relied on external platforms for transaction conversion, making data attribution difficult and user asset accumulation challenging
• Representative programs: Spark Program (cooperation with Taobao), Jinghuo Program (cooperation with JD.com)

• Build a complete internal link on Bilibili from content-driven product discovery, content consumption to transaction conversion
• Achieve full-link data control and user asset accumulation
• Core tool: “Bilibili Reach” One-Stop AI Marketing Strategy Center

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According to data disclosed at Bilibili’s 2026 AD TALK Marketing Conference [1], as of Q3 2025, Bilibili’s overall advertising revenue has

, a performance that stands out significantly among mid-to-long-form video platforms:

Core Metrics	Performance	Industry Position
Advertising Revenue Growth Rate	Over 20% for 11 consecutive quarters	Leading industry average
Number of Partners	+30% year-over-year	Continuous expansion
Double 11 GMV Growth Rate	Over 150% year-over-year	High-speed growth
Number of Orders Over RMB 1,000	Over 2x year-over-year growth	High-value conversion

• Further upgraded the MATES Audience Asset Model in 2025 [1]
• AIGC capabilities help brands automatically generate materials tailored to different scenarios
• Deep conversion bidding controls costs and improves ROI
• Automated advertising capabilities reduce manual costs for campaigns

• Covers over 7,000 interest circles to meet diverse user needs
• UPs with strong brand message translation capabilities achieve in-depth expression of brand propositions
• High-frequency interactions such as bullet comments and reviews enhance brand memorability

• 112 minutes
  of average daily usage time [1], with extremely high user stickiness
• 376 million monthly active users (MAUs), 117 million daily active users (DAUs), covering the core young consumer group
• Over 87% of users will make purchases when products are integrated into their interest circles

Impact Dimension	Open Loop Model	Closed Loop Model	Incremental Value
Revenue Sources	Advertising fees only	Advertising fees + transaction commissions	+15-25%
Customer Stickiness	Relies on redirection	In-platform closed loop	+30%+ improvement
Data Value	Partial attribution	Full-link control	+50%+ improvement
Average Client Revenue	CPM-based	Hybrid CPM+CPS model	+20%+ improvement

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Platform	2024 GMV (RMB 100 million)	Year-over-Year Growth Rate	Model Features
Douyin E-Commerce	35,000	30%	Closed loop + algorithm-driven
Kuaishou E-Commerce	13,900	25%	Trust-based e-commerce closed loop
Xiaohongshu	4,000	120%	Content-driven product discovery + buyer model
Bilibili E-Commerce	Approx. 1,000	150%	Transition from open loop to closed loop
Taobao Live	20,000	15%	Centralized e-commerce

Unlike Douyin’s “lowest price across the internet” strategy and Xiaohongshu’s “premium buyer” model, Bilibili adheres to a

strategy [1]:

• Brand Influence First
  : Bilibili Vice Chairwoman Li Ni emphasized “Focus on building brands, and truly cultivate brand influence that captures users’ minds”
• High-Quality Content-Driven
  : Achieve in-depth brand expression through co-created content with UPs
• High-Value User Group
  : Core user base of young men with high consumption potential

:

• Tsingtao Beer customized a brand attitude video co-created with UPs, garnering nearly 500 million views across the internet
• Insta360 captured the outdoor sports interest scene, topping the mindshare penetration rate in the panoramic camera category

:

• Spark Program
  : The proportion of new customers directed to merchants’ stores continues to increase
• Jinghuo Program
  : Conducts attribution based on device identification of video-viewing users, monitoring users’ post-link behaviors on JD.com
• Data Connectivity
  : Achieved post-link data backtracking and attribution capabilities with three major e-commerce platforms

:

• B Mini-Program Ecosystem
  : Being tested internally for game clients, with over 100 active B mini-games and higher-than-expected payment conversion rates
• Short Drama/Novel Section
  : Expands the functional boundaries of B mini-programs
• TV/In-Vehicle Terminals
  : Tap into emerging traffic scenarios

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Risk Points	Performance	Response Strategies
User Aversion to Commercialization	Overly prominent advertising reduces authenticity	Soft content placement + co-creation with UPs
Decline in Content Quality	Excessive focus on conversion	Adhere to the core principle of “high-quality content”
Impairment of Creator Ecosystem	Commercial content crowds out original content	Protect the original content incentive system

• Shortcomings
  : Logistics, customer service, and after-sales systems are far less developed than those of professional e-commerce platforms
• Comparison
  : Xiaohongshu’s local life “Little Red Card” was suspended within three months of its launch [3]
• Bilibili’s Strategy
  : Enter through the light-asset model of “B mini-programs” to avoid the trap of heavy operations

• Short-video platforms such as Douyin and Kuaishou still hold significant advantages in advertising revenue scale
• Bilibili needs to adhere to its differentiated positioning as a mid-to-long-form video platform
• Breakthrough
  : The mindshare influence of in-depth content is a moat that short-video platforms cannot easily replicate

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Metrics	Data	Evaluation
Market Capitalization	$13.45 billion	Mid-sized internet company
Stock Price Performance	+89.4% over the past year	High market recognition
Analyst Ratings	75% Buy	Optimistic expectations
Median Target Price	$33.00	+2.6% compared to current price

:

• Advertising revenue will continue to grow at a rate of 20%+
• GMV will achieve 100-150% growth
• Data cooperation with e-commerce platforms will be deepened

:

• The proportion of in-platform transactions will increase to 20-30%
• E-commerce business will become the third-largest revenue pillar
• Establish a differentiated e-commerce niche

:

• Complete the strategic upgrade from “open loop” to “closed loop”
• Form a complete commercial closed loop of “Content + Community + Transaction”
• Establish a benchmark position for e-commerce transformation among mid-to-long-form video platforms

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Bilibili’s strategic transformation from an “open loop” to a “closed loop” model is an inevitable choice to compete with short-video platforms and improve commercialization efficiency. With its unique community value (376 million MAUs, 112 minutes of average daily usage) and high-quality user group, Bilibili has the foundation for differentiated competition.

:

1. Advertising Revenue Will Maintain High Growth
   : Relying on AI tool empowerment and advantages in deep mindshare marketing, advertising revenue is expected to maintain a growth rate of over 20%
2. E-Commerce Business Will Expand Rapidly but Prudently
   : Enter through the light-asset B mini-program model to avoid heavy operation risks, while maintaining cooperative relationships with Taobao and JD.com
3. Competitive Landscape Will Be Reshaped
   : Bilibili will not simply copy Douyin or Xiaohongshu’s e-commerce models, but will take a unique path of “deep mindshare + brand influence”

: Balancing community culture and commercialization, progress in improving e-commerce infrastructure, and the impact of macroeconomic conditions on brand advertising budgets.

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[1] Yangtse Evening Post - “Bilibili 2026 AD TALK Marketing Partner Conference: AI Empowers Practical Applications Across the Board” (https://www.yzwb.net/news/ch/202601/t20260113_310753.html)

[2] Alibaba Cloud Innovation Center - “Bilibili Holds 2025 AD TALK Marketing Partner Conference, Deep Mindshare Becomes Key to Marketing Efficiency Improvement” (https://startup.aliyun.com/info/1091728.html)

[3] Guancha.cn - “Xiaohongshu 2025 Year-End Summary: Easy to Seed Products, Hard to Balance Multiple Goals” (https://user.guancha.cn/main/content?id=1574401)

[4] Yicai Global - “New Track for Cross-Border E-Commerce: From Price Competition to Innovation-Driven Development” (https://www.yicai.com/news/102783282.html)

[5] Sina Finance - “A Brief History of Xiaohongshu’s Top Livestreamers: From Dong Jie’s Pioneering to Ng Chin Yu’s RMB 150 Million Sales” (https://finance.sina.com.cn/wm/2025-12-28/doc-inheimcv1361357.shtml)

[6] Bianews - “10 Years in E-Commerce: Xiaohongshu Transforms from “Ad Space” to “Business Arena”” (https://www.bianews.com/news/details?id=228760)

[7] Eastmoney.com - “2025 Bilibili Mobile & PC Industry White Paper” (https://pdf.dfcfw.com/pdf/H3_AP202501031641521529_1.pdf)