ByteDance's Doubao Enters AI Red Envelope War for New Year

As the Chinese New Year approaches, ByteDance's Doubao has intensified its efforts within the competitive artificial intelligence market by launching an engaging promotional campaign. This initiative features a mix of cash red envelopes and technological gifts designed to attract users during this peak period for consumer interaction.

On the evening of February 16, coinciding with Chinese New Year's Eve, Doubao plans to distribute more than 100,000 tech-themed gifts during the Spring Festival Gala. Cash red envelopes will also be part of the festivities, with a potential value of up to 8,888 yuan, or approximately 1,280 dollars, according to an official statement released by Doubao.

The promotional gifts include innovative technology products integrated with the Doubao large-language model. Items range from advanced robotics, such as Unitree and Songyan Power robots and Magiclab's robotic dogs, to consumer electronics like Xiaomi smartwatches and Supor rice cookers. Notably, there will also be opportunities for winners to gain usage rights for two electric vehicle models: the SAIC Audi E5 Sportback and the Mercedes-Benz CLA.

Liu Dingding, a respected analyst in the technology sector, shared insights on the campaign's implications. He noted that Doubao's strategic sponsorship of the prominent Spring Festival Gala and its extensive user base positions the app to excel in the user acquisition race. This emphasis on ecosystem integration and channel advantages suggests a departure from a sole focus on conventional marketing.

Bian Yongzu, the executive deputy editor-in-chief of Modernization of Management magazine, pointed out the significance of cultural context in this AI promotional strategy. The Spring Festival serves as a backdrop that facilitates rapid user base expansion at a lower cost. He remarked that red envelope promotions resonate with users largely due to their cultural symbolism rather than purely monetary value, resulting in effective communication.

In parallel developments, Alibaba's Qwen app has also joined the fray, launching a Spring Festival giveaway exceeding 3 billion yuan. This initiative involves distributing 25 yuan gift cards for milk tea, triggering widespread online engagement as users shared experiences of bustling milk tea shops overwhelmed by delivery orders.

The competition in the AI sector extends beyond ByteDance and Alibaba. Notable players such as Baidu and Tencent have initiated similar digital red envelope campaigns, collectively surpassing an estimated value of 4.5 billion yuan. Tencent's Yuanbao, for instance, recently unveiled a campaign worth up to 1 billion yuan, offering digital packets that could reach as high as 10,000 yuan each.

Bian emphasized the critical role of user participation in optimizing large language models. Increased user engagement contributes to enhancements through feedback, scenario testing, and feature improvements. This timing indicates that aggressive marketing during the Spring Festival will have a more pronounced impact compared to regular promotional efforts.

What may appear as a mere 'red envelope war' is indeed a deeper contest for user engagement with AI technologies. Liu drew attention to the innovative promotional approach that aims to accelerate the acceptance and integration of AI, shifting industry focus away from narrow technical comparisons to broader practical usability.

The dynamic nature of competition underscores the prominence of China's LLM sector on a global scale. Bian noted that only a few countries can sustain multiple LLM operators concurrently, with China leading alongside the United States, highlighting national technological prowess and depth.

Yet, long-term user retention will ultimately hinge on the sophistication of technology and product efficacy, rather than transient promotional efforts. Bian asserted that user loyalty stems from genuine value in practical applications, emphasizing that true competitive advantage relies on consistent innovation and alignment with global standards.

As reported by the Economic Daily, China's generative AI user base soared to 602 million by December 2025, representing a remarkable increase of 141.7 percent since the previous year, with penetration reaching over 42.8 percent. These statistics illustrate the transition of AI from theoretical applications to everyday utilization, providing a robust market foundation for broader initiatives under the 'AI Plus' strategy.