And we are like, like I mentioned in the prepared remarks, and financially, we’re very focused on optimizing for cash flow returns and EBITDA. So I think it’s probably fair to say compared to last year, the year before, ad spend will continue to stay at a very disciplined level. And as we continue to focus on the rule and the return threshold.
Joe Yan: Yes, and I can add a little bit color here, so in the past few quarters, so we have been spending a lot of effort on optimizing the return on ad spend, especially in the existing customer segments. So we have seeing a very quiet good improvement from the existing customer segments that actually can allow us so really kind of allocate little bit more on budget into the new user acquisition in the upcoming quarters. But doesn’t mean that you will increase the marketing spend softly. But there’s nothing just like more the approach, the campaign structure change, and really help us to optimize ROIs at a more holistic view. So, I think this is the overall approach we are doing now. And Q2 definitely, it’s a transitioning quarter, so we have studied some of the campaign approach change, and we do hope so that can really help us right to build on the top funnel.
But at the end of the day, just like what I said right, organic is still being the biggest bet for us. So the marketing still will remain a very key driver approach for us for us, the DAU, the growth back. I think organic is still is the biggest bet. So that’s something we’ll still we’re relying on the customer experience improvement or product feature improvement. So just like what we shared earlier, right, including reducing the customer friction during the shopping journey, right, the more innovative way for exploration and discovery, and also the continuing improvement on the improvement on the shipping experience. Note, all of these things coming together, so can really offer a customer much better experience on Wish. And this is something I think can really help us grow on the organic side.
So yes, having said that, so with all these combined effort, we do hope rise in the marketing and product efforts can really kind of work together to generate more kind of user for Wish.
Laura Champine: Got it. Thank you.
Operator: Thank you. One moment for our final question for today. And our final question for today comes from the line of Kunal Madhukar from UBS. Your question, please.
Kunal Madhukar: Hi. All right. Another question popped in my mind. And that was with regard to the marketing spend. So Vivian you talked about having a high ROI threshold on the marketing spend, and when I look at like your marketing spend as a percentage of core marketplace revenue, that increased from about 130%, in 1Q ‘23, to 160% in 2Q ‘23. The aggregate marketing spends actually increase Q-over-Q in the second quarter when revenue declined. So Can you talk about, you know, how much of your marketing spend is performance based versus brand? And where the ROI equation may be breaking down? Thank you.
Vivian Liu: Thank you for the question. So, I think a couple of things, if we compare year-over-year, first of all, our ROIs on the performance marketing spend, has been improving pretty steadily. But I understand that the dynamic you’re describing our total marketplace revenue is declining from year-over-year standpoint. So, two things to keep in mind. Number one is the fact that we removed — change of pricing practices. And from last year to this year — sorry, we implemented the new pricing changes by end of Q2 last year, which means when you compare this Q2 to the last Q2, it was this year is admirable, because we implemented the changes that you remove premium on certain item prices, which directly impact our marketplace revenue and a margin.
