Technology
Zhihu Inc. Reports Unaudited Second Quarter 2024 Financial Results
Published
2 years agoon
By
BEIJING, Aug. 22, 2024 /PRNewswire/ — Zhihu Inc. (“Zhihu” or the “Company”) (NYSE: ZH; HKEX: 2390), a leading online content community in China, today announced its unaudited financial results for the quarter ended June 30, 2024.
Second Quarter 2024 Highlights
Total revenues were RMB933.8 million (US$128.5 million) in the second quarter of 2024, compared with RMB1,044.2 million in the same period of 2023.Gross margin expanded to 59.6% in the second quarter of 2024 from 53.8% in the same period of 2023.Net loss was RMB80.6 million (US$11.1 million) in the second quarter of 2024, narrowed by 71.1% from the same period of 2023.Adjusted net loss (non-GAAP)[1] was RMB44.6 million (US$6.1 million) in the second quarter of 2024, narrowed by 79.9% from the same period of 2023.Average monthly active users (MAUs)[2] were 80.6 million in the second quarter of 2024. Average monthly subscribing members[3] were 14.7 million in the second quarter of 2024.
“Our strategic decisions and effective execution yielded impressive financial results in the second quarter of 2024,” said Mr. Yuan Zhou, chairman and chief executive officer of Zhihu. “At the same time, we made substantial strides in enhancing our core user experience, evidenced by the continued growth in user retention and DAU time spent. Building on our community’s enhanced trustworthiness, we launched Zhihu Zhida (知乎直答) in late June, marking a major advancement in our AI search initiatives. Further improvements in user retention and the positive user feedback Zhihu Zhida has received demonstrate our unique advantages and ability to capture the tremendous opportunities in this field.”
Mr. Han Wang, chief financial officer of Zhihu, added, “The second quarter marked our lowest quarterly loss since our U.S. IPO. During the quarter, we maintained disciplined spending while achieving a high ROI across all business lines. Additionally, we are committed to enhancing shareholder returns through various means. Moving forward, we will continue to emphasize strong strategic execution as we pursue long-term sustainable profitability.”
Second Quarter 2024 Financial Results
Total revenues were RMB933.8 million (US$128.5 million) in the second quarter of 2024, compared with RMB1,044.2 million in the same period of 2023.
Marketing services revenue was RMB344.0 million (US$47.3 million), compared with RMB412.7 million in the same period of 2023. The decrease was primarily due to our proactive and ongoing refinement of service offerings to strategically focus on margin improvement.
Paid membership revenue was RMB432.7 million (US$59.5 million), compared with RMB449.1 million in the same period of 2023. The slight decrease was primarily attributable to a marginal decline in our average revenue per subscribing member.
Vocational training revenue was RMB133.6 million (US$18.4 million), compared with RMB144.5 million in the same period of 2023. The decrease was primarily driven by lower revenue contributions from our acquired businesses.
Other revenues were RMB23.5 million (US$3.2 million), compared with RMB37.9 million in the same period of 2023.
Cost of revenues decreased by 21.8% to RMB377.3 million (US$51.9 million) from RMB482.1 million in the same period of 2023. The decrease was primarily due to reduced content and operating costs associated with the decline in our revenues.
Gross profit was RMB556.5 million (US$76.6 million), compared with RMB562.1 million in the same period of 2023. Gross margin expanded to 59.6% from 53.8% in the same period of 2023, primarily attributable to our monetization enhancements and improvements in our operating efficiency.
Total operating expenses decreased by 16.7% to RMB740.4 million (US$101.9 million) from RMB889.3 million in the same period of 2023.
Selling and marketing expenses decreased by 22.9% to RMB417.0 million (US$57.4 million) from RMB540.6 million in the same period of 2023. The decrease was primarily due to more disciplined promotional spending and a decrease in personnel-related expenses.
Research and development expenses decreased by 11.4% to RMB209.3 million (US$28.8 million) from RMB236.2 million in the same period of 2023. The decrease was primarily attributable to more efficient spending on technology innovation.
General and administrative expenses were RMB114.1 million (US$15.7 million), compared with RMB112.5 million in the same period of 2023.
Loss from operations narrowed by 43.8% to RMB183.9 million (US$25.3 million) from RMB327.2 million in the same period of 2023.
Adjusted loss from operations (non-GAAP)[1] narrowed by 45.4% to RMB147.1 million (US$20.2 million) from RMB269.4 million in the same period of 2023.
Net loss narrowed by 71.1% to RMB80.6 million (US$11.1 million) from RMB279.1 million in the same period of 2023.
Adjusted net loss (non-GAAP)[1] narrowed by 79.9% to RMB44.6 million (US$6.1 million) from RMB222.3 million in the same period of 2023.
Diluted net loss per American depositary share (“ADS”) [4] was RMB0.89 (US$0.12), compared with RMB2.76 in the same period of 2023.
Cash and cash equivalents, term deposits, restricted cash and short-term investments
As of June 30, 2024, the Company had cash and cash equivalents, term deposits, restricted cash and short-term investments of RMB5,061.5 million (US$696.5 million), compared with RMB5,462.9 million as of December 31, 2023.
Share Repurchase Programs
As of June 30, 2024, the Company had repurchased 31.1 million Class A ordinary shares (including Class A ordinary shares underlying the ADSs) for a total price of US$66.5 million on both the New York Stock Exchange and The Stock Exchange of Hong Kong Limited under the Company’s existing US$100 million share repurchase program (the “2022 Repurchase Program”), established in May 2022 and extended until June 26, 2025. In addition, a concurrent share repurchase program (the “2024 Repurchase Program”) was established in June 2024, effective until June 26, 2025. The maximum number of shares (including shares underlying the ADSs) that can be repurchased under the 2024 Repurchase Program, together with the remaining number of shares (including shares underlying the ADSs) that can be repurchased under the 2022 Repurchase Program, will not exceed 10% of the total number of issued shares of the Company (excluding any treasury shares) as of June 26, 2024, the date of the resolution granting the general unconditional mandate to purchase the Company’s own shares approved by shareholders.
[1] Adjusted loss from operations and adjusted net loss are non-GAAP financial measures. For more information on the non-GAAP financial measures, please see the section “Use of Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.
[2] MAUs refers to the sum of the number of mobile devices that launch our mobile apps at least once in a given month, or mobile MAUs, and the number of logged-in users who visit our PC or mobile website at least once in a given month, after eliminating duplicates.
[3] Monthly subscribing members refers to the number of our Yan Selection members in a specified month. Average monthly subscribing members for a period is calculated by dividing the sum of monthly subscribing members for each month during the specified period by the number of months in such period.
[4] On May 10, 2024, we effected a change in the ratio of our ADSs to Class A ordinary shares from two ADSs representing one Class A ordinary share to a new ratio of one ADS representing three Class A ordinary shares. Basic and diluted net loss per ADS have been retrospectively adjusted to reflect this ADS ratio change for all periods presented.
Conference Call
The Company’s management will host an earnings conference call at 8:00 p.m. U.S. Eastern Time on August 22, 2024 (8:00 a.m. Beijing/Hong Kong time on August 23, 2024).
All participants wishing to join the conference call must pre-register online using the link provided below. Once the pre-registration has been completed, each participant will receive a set of dial-in numbers, a passcode, and a unique registrant ID which can be used to join the conference call. Participants may pre-register at any time, including up to and after the call start time.
Participant Online Registration: https://dpregister.com/sreg/10191716/fd413a8bd8
Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.zhihu.com.
A replay of the conference call will be accessible approximately one hour after the conclusion of the live call, until August 29, 2024, by dialing the following telephone numbers:
United States (toll free):
+1-877-344-7529
International:
+1-412-317-0088
Replay Access Code:
4215305
About Zhihu Inc.
Zhihu Inc. (NYSE: ZH; HKEX: 2390) is a leading online content community in China where people come to find solutions, make decisions, seek inspiration, and have fun. Since the initial launch in 2010, we have grown from a Q&A community into one of the top comprehensive online content communities and the largest Q&A-inspired online content community in China. For more information, please visit https://ir.zhihu.com.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses non-GAAP financial measures, such as adjusted loss from operations and adjusted net loss, to supplement the review and assessment of its operating performance. The Company defines non-GAAP financial measures by excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisitions and the tax effects of the non-GAAP adjustments, which are non-cash expenses. The Company believes that the non-GAAP financial measures facilitate comparisons of operating performance from period to period and company to company by adjusting for potential impacts of items, which the Company’s management considers to be indicative of its operating performance. The Company believes that the non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the Company’s consolidated results of operations in the same manner as they help the Company’s management.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The presentation of the non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. The use of the non-GAAP financial measures has limitations as an analytical tool, and investors should not consider it in isolation from, or as a substitute for analysis of, our results of operations or financial condition as reported under U.S. GAAP. For more information on the non-GAAP financial measures, please see the tables captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at a rate of RMB7.2672 to US$1.00, the exchange rate in effect as of June 28, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Zhihu Inc.
Email: ir@zhihu.com
Piacente Financial Communications
Helen Wu
Tel: +86-10-6508-0677
Email: zhihu@tpg-ir.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Phone: +1-212-481-2050
Email: zhihu@tpg-ir.com
ZHIHU INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except share, ADS, per share data and per ADS data)
For the Three Months Ended
For the Six Months Ended
June 30,
2023
March 31,
2024
June 30,
2024
June 30,
2023
June 30,
2024
RMB
RMB
RMB
US$
RMB
RMB
US$
Revenues:
Marketing services
412,740
330,542
343,979
47,333
804,877
674,521
92,817
Paid membership
449,098
449,724
432,652
59,535
903,867
882,376
121,419
Vocational training
144,520
145,436
133,633
18,389
251,518
279,069
38,401
Others
37,851
35,161
23,546
3,240
78,167
58,707
8,078
Total revenues
1,044,209
960,863
933,810
128,497
2,038,429
1,894,673
260,715
Cost of revenues
(482,131)
(417,384)
(377,266)
(51,914)
(964,132)
(794,650)
(109,347)
Gross profit
562,078
543,479
556,544
76,583
1,074,297
1,100,023
151,368
Selling and marketing expenses
(540,593)
(477,954)
(416,985)
(57,379)
(986,158)
(894,939)
(123,148)
Research and development expenses
(236,245)
(197,356)
(209,323)
(28,804)
(419,205)
(406,679)
(55,961)
General and administrative expenses
(112,460)
(92,917)
(114,107)
(15,702)
(212,898)
(207,024)
(28,487)
Total operating expenses
(889,298)
(768,227)
(740,415)
(101,885)
(1,618,261)
(1,508,642)
(207,596)
Loss from operations
(327,220)
(224,748)
(183,871)
(25,302)
(543,964)
(408,619)
(56,228)
Other income/(expenses):
Investment income
11,793
16,902
21,811
3,001
17,799
38,713
5,327
Interest income
39,987
30,763
26,754
3,681
79,480
57,517
7,915
Fair value change of financial instruments
(9,016)
9,408
31,412
4,322
(12,598)
40,820
5,617
Exchange gains
7,076
120
289
40
1,427
409
56
Others, net
644
3,043
15,947
2,194
6,977
18,990
2,613
Loss before income tax
(276,736)
(164,512)
(87,658)
(12,064)
(450,879)
(252,170)
(34,700)
Income tax (expenses)/benefits
(2,330)
(1,284)
7,063
972
(7,159)
5,779
795
Net loss
(279,066)
(165,796)
(80,595)
(11,092)
(458,038)
(246,391)
(33,905)
Net (income)/loss attributable to
noncontrolling interests
(775)
950
(2,144)
(295)
(3,158)
(1,194)
(164)
Net loss attributable to Zhihu Inc.’s
shareholders
(279,841)
(164,846)
(82,739)
(11,387)
(461,196)
(247,585)
(34,069)
Net loss per share
Basic
(0.92)
(0.59)
(0.30)
(0.04)
(1.52)
(0.88)
(0.12)
Diluted
(0.92)
(0.59)
(0.30)
(0.04)
(1.52)
(0.88)
(0.12)
Net loss per ADS (One ADS represents
three Class A ordinary shares)
Basic
(2.76)
(1.76)
(0.89)
(0.12)
(4.55)
(2.65)
(0.36)
Diluted
(2.76)
(1.76)
(0.89)
(0.12)
(4.55)
(2.65)
(0.36)
Weighted average number of ordinary
shares outstanding
Basic
304,068,362
281,549,707
279,241,647
279,241,647
304,052,681
280,403,026
280,403,026
Diluted
304,068,362
281,549,707
279,241,647
279,241,647
304,052,681
280,403,026
280,403,026
ZHIHU INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(All amounts in thousands, except share, ADS, per share data and per ADS data)
For the Three Months Ended
For the Six Months Ended
June 30,
2023
March 31,
2024
June 30,
2024
June 30,
2023
June 30,
2024
RMB
RMB
RMB
US$
RMB
RMB
US$
Share-based compensation expenses included in:
Cost of revenues
2,146
2,497
750
103
6,546
3,247
447
Selling and marketing expenses
6,384
3,272
(6,063)
(834)
15,142
(2,791)
(384)
Research and development expenses
14,941
3,680
4,439
611
36,146
8,119
1,117
General and administrative expenses
28,976
16,363
33,515
4,612
50,531
49,878
6,863
ZHIHU INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands)
As of December 31,
2023
As of June 30,
2024
RMB
RMB
US$
ASSETS
Current assets:
Cash and cash equivalents
2,106,639
3,159,325
434,738
Term deposits
1,586,469
1,204,062
165,684
Short-term investments
1,769,822
646,321
88,937
Restricted cash
–
51,774
7,124
Trade receivables
664,615
532,929
73,333
Amounts due from related parties
18,319
41,236
5,674
Prepayments and other current assets
232,016
201,338
27,705
Total current assets
6,377,880
5,836,985
803,195
Non-current assets:
Property and equipment, net
10,849
9,670
1,331
Intangible assets, net
122,645
61,698
8,490
Goodwill
191,077
126,344
17,386
Long-term investments, net
44,621
51,176
7,042
Right-of-use assets
40,211
21,959
3,022
Other non-current assets
7,989
372
51
Total non-current assets
417,392
271,219
37,322
Total assets
6,795,272
6,108,204
840,517
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities
1,038,531
913,225
125,664
Salary and welfare payables
342,125
219,681
30,229
Taxes payables
21,394
16,967
2,335
Contract liabilities
303,574
283,465
39,006
Amounts due to related parties
26,032
10,685
1,470
Short-term lease liabilities
42,089
24,834
3,417
Short-term borrowings
–
51,774
7,124
Other current liabilities
171,743
159,014
21,881
Total current liabilities
1,945,488
1,679,645
231,126
Non-current liabilities
Long-term lease liabilities
3,642
2,071
285
Deferred tax liabilities
22,574
8,030
1,105
Other non-current liabilities
121,958
18,253
2,512
Total non-current liabilities
148,174
28,354
3,902
Total liabilities
2,093,662
1,707,999
235,028
Total Zhihu Inc.’s shareholders’ equity
4,599,810
4,312,294
593,392
Noncontrolling interests
101,800
87,911
12,097
Total shareholders’ equity
4,701,610
4,400,205
605,489
Total liabilities and shareholders’ equity
6,795,272
6,108,204
840,517
ZHIHU INC.
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands)
For the Three Months Ended
For the Six Months Ended
June 30,
2023
March 31,
2024
June 30,
2024
June 30,
2023
June 30,
2024
RMB
RMB
RMB
US$
RMB
RMB
US$
Loss from operations
(327,220)
(224,748)
(183,871)
(25,302)
(543,964)
(408,619)
(56,228)
Add:
Share-based compensation expenses
52,447
25,812
32,641
4,492
108,365
58,453
8,043
Amortization of intangible assets resulting from
business acquisitions
5,365
5,365
4,115
566
8,855
9,480
1,304
Adjusted loss from operations
(269,408)
(193,571)
(147,115)
(20,244)
(426,744)
(340,686)
(46,881)
Net loss
(279,066)
(165,796)
(80,595)
(11,092)
(458,038)
(246,391)
(33,905)
Add:
Share-based compensation expenses
52,447
25,812
32,641
4,492
108,365
58,453
8,043
Amortization of intangible assets resulting
from business acquisitions
5,365
5,365
4,115
566
8,855
9,480
1,304
Tax effects on non-GAAP adjustments
(1,069)
(1,069)
(756)
(104)
(1,669)
(1,825)
(251)
Adjusted net loss
(222,323)
(135,688)
(44,595)
(6,138)
(342,487)
(180,283)
(24,809)
View original content:https://www.prnewswire.com/news-releases/zhihu-inc-reports-unaudited-second-quarter-2024-financial-results-302229121.html
SOURCE Zhihu Inc.
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Media Contact:
press@monsterenergy.com
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“Firefox was there then, we’re here now, and what we stand for matters more than ever,” said John Solomon, Chief Marketing Officer at Mozilla. “People who left Firefox years ago will find a browser that’s more private and gives them more control, including over AI.”
The Campaign
Come Back to Firefox brings together some of the world’s most memorable internet icons: Numa Numa Guy, Bad Luck Brian, Overly Attached Girlfriend, Kelly of “Shoes” fame, Where the Hell Is Matt?, Annoying Orange, Apparently Kid, Tay Zonday, Chuck Testa, Success Kid, and Evolution of Dance. Each takes on a modern frustration with humor:
Overly Attached Girlfriend may have wanted to know everything about you, but your browser shouldn’t.Dancing Matt boogied all over the world, without any corporations tracking him or selling his personal data.And while Annoying Orange is still incredibly annoying, he’s not as annoying as forced AI features.
The campaign launches in the United States Sunday, October 25th, with two distinct 30-second commercials airing on NBC. Next, it rolls out in Germany, France, and the United Kingdom.
“Being on set was a reminder of why those moments mattered,” said Solomon. “Ordinary people making things on the internet that made it feel so surprising and fun, and that’s the feeling we wanted to bring back.”
The campaign was created by award-winning independent agency We Believers, and brought to life by directing collective Sunny Sixteen and production company nobodys. Together, they meticulously recreated each performance, look, and even the sets from the original videos, taking each internet personality back to where their story began.
“We wanted an idea that truly belongs to Firefox, a challenger browser that helped shape the internet’s golden years and stayed independent as Big Tech took over,” said Gustavo Lauria, Founder and CCO at We Believers.
The campaign is one of Firefox’s most ambitious yet but is rooted in what has always set the browser apart from Big Tech: its commitment to putting people before profits and giving them more control over their online experience. Now, Firefox says it’s never been a better time for people who once used the browser to take another look.
About Firefox
Firefox is a web browser developed by Mozilla, built to give people more choice and control over their online experience. With built-in tracking protection, customization options, and a commitment to an open internet, Firefox offers an alternative to browsers developed by the world’s largest technology companies. Learn more at firefox.com/welcomeback.
View original content to download multimedia:https://www.prnewswire.com/news-releases/come-back-to-firefox-mozilla-launches-its-most-ambitious-campaign-yet-to-bring-people-back-to-the-independent-alternative-to-big-tech-browsers-302918568.html
SOURCE Mozilla
Technology
Best AI Tools for Small Business Marketing (2026): CapCut Featured for Creating Professional Video and Visual Content by Expert Consumers
Published
2 hours agoon
October 25, 2026By
NEW YORK, Oct. 25, 2026 /PRNewswire/ — Expert Consumers has recognized CapCut in its 2026 coverage of the best AI tools for small business marketing, highlighting the platform’s collection of AI-powered features for creating and editing video, images, audio, and other visual content. The recognition reflects growing interest in tools that support practical marketing activities, including campaign development, promotional content production, and adapting creative assets for different digital channels.
Best AI Marketing Tools
Seedance 2.0 – an AI video generation model that creates videos from text prompts or imagesSeedream – an AI image generation model that creates high-quality visuals from text prompts
Small businesses face growing pressure to maintain an active digital presence while managing limited time and resources. From product photography and promotional videos to social media graphics and campaign materials, effective marketing depends on a steady supply of relevant, engaging content. Artificial intelligence is creating new ways to simplify these tasks and help businesses turn creative ideas into usable marketing assets.
CapCut provides a range of AI-assisted capabilities that support several stages of content production. These include prompt-based video generation, AI image creation, background removal, image expansion, music generation, and photo animation. For small businesses managing marketing internally, these functions offer options for developing creative assets without relying entirely on manual production processes.
AI Video Generation Supports Promotional Campaigns
Video is an important format for demonstrating products, explaining services, and introducing new offerings. Small businesses can use video across social media, websites, digital advertisements, and online product pages. Producing content regularly, however, can require considerable planning and editing.
CapCut’s Seedance 2.0 AI video generator offers a prompt-based approach to video creation. Users can describe a creative concept and generate video content that serves as a starting point for further editing.
For a small retailer preparing a product promotion, AI-generated video can help explore different visual approaches before a final concept is selected. A service provider could use the same process to develop ideas for an explainer or an introductory campaign.
Prompt-based generation can reduce the effort involved in developing initial concepts. Generated material still requires review to ensure the finished video accurately represents the business, communicates the intended message, and follows relevant brand guidelines.
AI Image Creation Helps Develop Marketing Materials
Visual content plays a central role in how businesses present products and services online. Promotional graphics, campaign imagery, and social media visuals need to communicate a clear message while maintaining a recognizable style.
CapCut’s Seedream AI image generator enables users to generate images from text prompts. The tool can support concept drafts, campaign planning, and experimentation with different visual directions before final assets are prepared.
For example, a small business planning a seasonal campaign could explore different visual themes and compositions during the early planning stage. These drafts can help establish a creative direction before additional time is spent refining the final materials.
CapCut’s GPT Image 2 provides another option for generating images from natural language instructions. The feature can support the development of promotional imagery, marketing graphics, and other visual assets.
AI image generation gives businesses more opportunities to test creative ideas during campaign development. However, generated images should be checked for visual errors, accurate product representation, and consistency with the intended brand identity before publication.
Image Editing Simplifies Content Preparation
Creating new marketing assets is only part of the production process. Existing photographs and graphics often need adjustments before they are suitable for different platforms.
CapCut’s AI background removal tool helps isolate subjects from their original backgrounds. This can simplify the preparation of product photographs, promotional graphics, and other images that require a different visual setting.
For a small retailer, background removal can make it easier to prepare product images for online listings or promotional materials. Separated subjects can be incorporated into new compositions without recreating the entire image.
The AI Image Extender addresses a separate challenge: adapting images to different dimensions. The tool generates additional visual content beyond an image’s original boundaries, helping users adjust compositions without relying entirely on cropping or stretching.
A campaign may require square graphics for social media, vertical visuals for mobile viewing, and horizontal banners for a website. Image expansion provides another option for adapting existing assets to those formats.
These editing capabilities can help reduce repetitive production work while supporting a more consistent presentation across marketing channels.
AI Audio and Photo Animation Expand Creative Options
Marketing content often combines visuals, movement, and sound. Music can establish a mood, support storytelling, and help create a more complete video presentation.
CapCut’s SeedMusic AI audio generator supports AI-assisted music creation based on prompts. The feature can help develop audio for promotional videos, product demonstrations, and social media content.
Generated music offers a starting point for matching audio to a campaign’s intended atmosphere. Before publication, businesses should review the output and confirm that the applicable usage terms cover the intended commercial application.
CapCut also provides a Photo-to-3D tool that transforms still images into more dynamic visual presentations. This capability can help repurpose existing photography for promotional videos, social posts, and digital campaigns.
For small businesses with an existing collection of product images, adding movement can provide another way to present familiar assets. The approach also expands the range of creative formats available without requiring every campaign to begin with new photography.
Connecting AI Tools to Everyday Marketing Workflows
The practical value of AI-powered creative tools depends on how effectively they address specific marketing needs. Small businesses do not necessarily need every available feature for every campaign. Selecting tools according to content requirements can help keep production focused.
A retailer might begin with Seedream to explore campaign concepts, then use GPT Image 2 to generate supporting visuals. Background removal can help prepare product photography, while AI Image Extender can adapt selected assets to different layouts. Seedance 2.0 can support video concept development, with SeedMusic offering an option for accompanying audio.
A service-based business might prioritize short promotional videos, explanatory graphics, and social media content instead. The same collection of tools can support different production requirements depending on the business model and campaign objectives.
Using AI does not remove the need for creative direction or quality control. Content should be checked for factual accuracy, appropriate product representation, brand consistency, and compliance with advertising requirements. Human review also helps ensure that generated assets serve a clear marketing purpose rather than adding unnecessary material to a campaign.
AI-Assisted Marketing for Small Businesses
Interest in the best AI tools for small business marketing reflects the need for practical ways to produce and adapt digital content. Businesses must balance the demand for regular campaign updates with the resources available for creative production.
Expert Consumers’ recognition of CapCut highlights the platform’s range of AI-assisted functions for video generation, image creation, editing, audio production, and photo animation. These capabilities offer small businesses several options for developing marketing materials across digital channels.
As AI becomes more integrated into content production, effective use will depend on matching the right tools to specific tasks. With clear campaign objectives, careful editing, and appropriate review, CapCut’s creative features can help businesses develop marketing assets while reducing some of the repetitive work involved in preparing content for publication.
Visit the Expert Consumers site for the full review.
About CapCut
CapCut is an AI-powered photo and video editing platform designed to make high-quality video creation accessible across devices. The platform supports creators, businesses, and everyday users with tools for video editing, AI video generation, captions, templates, audio, and visual editing. CapCut is available across mobile, web, desktop, and iPad experiences, helping users create, edit, and prepare video content for social media, marketing, education, and personal projects.
About Better Business Advice: Better Business Advice covers the news and strategies driving modern business success. The information provided by Better Business Advice does not, and is not intended to, constitute legal advice; instead, all information, content, and materials are for general informational purposes only. As an affiliate, Better Business Advice may earn commissions from services mentioned in the links provided.
View original content:https://www.prnewswire.com/news-releases/best-ai-tools-for-small-business-marketing-2026-capcut-featured-for-creating-professional-video-and-visual-content-by-expert-consumers-302918043.html
SOURCE ExpertConsumers.org
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