And also, you can see that this is advancing very much well in this gaming industry first and also by heavily and continuously investing into the technologies around this area. This is also helping us to gain a sustainable growth for the future. So this year, we do see a very good outcome from the gaming industry and also from this year onward, we are going to see a very positive impact to the business of the entertainment and the consumption and e-commerce, et cetera.
Operator: Your next question comes from the line of Daisy Chen from Haitong International.
Daisy Chen: I’ll translate myself. My question is about the real name display rule. We have noticed that many social media platforms in China, including Weibo, have recently announced that they will display the real names of the online influencers on their front account pages. So about this, I would like to ask the management what is the progress of Weibo’s real name display work of those display? And how we should evaluate the impact of real name rules on Weibo’s content ecosystem and the user activity?
Gaofei Wang: So for this question, first of all, since the birth of Weibo, we’ve been always emphasizing on the real name registration mechanism. So, I don’t believe that this is actually kind of a new rule or new regulation for Weibo. And also, for instance, if you want to be identified as a We account, normally you have to provide the real name and also the other relevant information to facilitate this accreditation process. So, Weibo actually did that when we were appearing in this market to solve the issue of the trust. However, in the future, after that, we did see the emergence of many different social platforms and also because of the requirement of the personal and privacy information protection, this is becoming less stringent as we required before.
But still, we still are performing the regulation of the front-end real name registration. For instance, if you still apply for the certification of your account, you need to provide the name or the position and also your company’s name. So, this is kind of a real name registration process. And also for this time, for the real name registration process of this time, actually, the major purpose is actually to emphasize on the authoritativeness and also the responsibilities and also the obligations that should be shouldered by those top notch We-media accounts and specifics, so that we are able to facilitate and also lead the process of creating a more harmonious environment of the Internet. So of course, at this particular round of the real name registration process, especially those kind of channels of news and military and also the legal and the council-related accounts are in the forefront of this round of the real name registration rule.
But of course, this is not going to impact the accounts of the food and beverage or the automotives and also cosmetics and beauty products, et cetera. And also, another thing is that for this round of this regulation, so the impact is quite limited. For instance, it’s only influencing 5 to 6 different areas. And also, as I have already stated, those big Wes already had their real name registration conducted before. So, over 40% of those big We accounts actually had already realized this real name registration and also the real name demonstration on the front-end or on the front page. So, we believe that this particular round of the impact is pretty much limited. And also another thing is that this round of the real name registration process is not compulsory, and also is going to be carried out by different phases.
So if this round, the account is choosing not to go on this particular process, the particular traffic and also certain revenue are going to be impacted. And also, for this round, it started in about 10th of October. And also in the short period of time, this will generate a certain impact and limitation in terms of the traffic and some of the others. But in the longer run, I think that it’s beneficial for us to create a more trustworthy environment with a more trusted information and public information. So, we will be still observing the impact for a while.
Operator: Your next question comes from the line of Timothy Zhao from Goldman Sachs.
Timothy Zhao: I have 2 questions. First is regarding the progress in building the vertical ecosystem. Could management elaborate more on what is the Weibo progress so far and how does that affect your monetization capabilities? And secondly, it’s regarding AIGC applications. I think we discussed last time, but I was just wondering if there’s any updates, especially regarding content generation and also the efficiency improvement in your monetization capabilities.
Gaofei Wang: All right. So for this particular question, we were always trying to emphasize on the Weibo’s strategy for the past several earnings report sessions and also especially touching upon the concept of the building of vertical ecosystem. So, for instance, after COVID, we had several strategies of focus. The first one is that focusing on establishment of the IP ecosystem, the definition of which is actually for those areas that could attract a lot of eyeballs and also intentions from the society. For instance, the hot topics and also the entertainment and culture, and also sports as well as the gaming industry as well. So, you can see that these different verticals were regarded as the IP ecosystem. And also, these IP ecosystems were growing still even during the COVID period for the past 3 years.
So, you can see that both in terms of the revenue and also the influential power. We’ve been seeing a very good growth and a very good momentum. Got it. And also by Q3, we’ve been seeing the statistics of showing that we had over 70% of the growth in terms of the traffic for this particular, what we call the IP ecosystem and also for the past several years during the COVID. So originally, the traffic from the IP ecosystems actually was accounting for about 40% to 60% of the total traffic of Weibo. And also during the COVID period, still we had a much better growth from the IP ecosystems than the verticals of automotives and digital or cosmetics and beauty and also the other, like electronics area. So, this particular growth was pretty much stable in the past.
However, this year we would like to shift our attention of our strategy. So after the COVID, we would like to change the traffic structure, meaning that we should not be too dependent on the traffic gain from the IP ecosystem because this is too much hot trend and hot topic oriented. So since this year onward and after COVID, we would like to focus and also divert more traffics to the other vertical industries, for instance, the cosmetics and beauty, digital products and also automotives, et cetera, because the users are more interactive and also the user stickiness is better. And also the KOL ecosystem is much better for those vertical industries. And also, we do have our own advertisement customers that are actually from these different verticals.
So if we actually divert and also try to get more traffic to those verticals, this is also going to help us to increase our revenue of the budget, the revenue of the advertisement as well. Got it. And also for those verticals, as I have already shared the color upon, so we’ve been seeing a very good recovery and also the growth for the traffic in Q3 and also in the whole second half as we expected. So, of course, for instance, for the cosmetics and beauty vertical, we had over 50% of the growth quarter-by-quarter and also around 30% and more growth for the digital products and also health care verticals in Q2. But of course, having said that, still, we’ve been seeing actually a quite differentiated performance across different verticals for those areas in terms of the recovery speed.
So, there are actually 2 points that we are making comparison upon. The first one is the recovery of the ecosystem as a whole or the KOL system, ecosystem and another one is the traffic recovery. So for the verticals like the electronics and health care, we actually have observed a very good recovery of both the KOL ecosystem and also the traffic. However, for the fashion and cosmetics vertical, the traffic has recovered, but not for the KOL system, meaning that the influential accounts and some of the really valuable accounts recovery was not as good as that of the traffic. So, we still need to have another 2 quarters more for us to have a total recovery, both on the KOL ecosystem and also the traffic And also in terms of AIGC, as we have already stated in the past that we have several focus of this year.
