Over the years, the business landscape has witnessed a rapid evolution in e-commerce. Adapting to the changes in customer habits and preferences has led to the emergence of new marketing systems and approaches.
What’s new in 2024 is the rise of live commerce, or so to say livestream commerce.
There is hardly any digital platform or social media space that doesn’t offer the option to livestream content. What makes this content consumable is the appeal of watching social media users in real-time.
Streaming has evolved in many sectors, most prominently gamers and live concerts. Many influencers have also tapped into this traction.
Comparatively, “influencer marketing” may be relatively new. However, nowadays, it is common for brands to collaborate with influencers to promote one of their products or services.
The lockdowns subsequent to COVID-19 substantially increased social media consumption, and as a result, no wonder marketers use the medium to connect and communicate with consumers.
Livestreaming engages thousands of viewers and consumers within minutes, allowing businesses to reach a large audience to promote products and services.
Moreover, consumers recognize the face behind the brand or their favorite influencers, which forms a connection, unlike any other marketing tactic.
Shoppable Livestreams
At the forefront of this revolution is the concept of shoppable livestreams. This innovative approach seamlessly integrates live video broadcasts with e-commerce functionality, allowing viewers to interact with hosts, ask questions, and make purchases in real time.
Companies like Amazon, with its Amazon Live platform, and China’s Alibaba, have been pioneers in this space, leveraging the power of livestreaming to create immersive shopping experiences.
Just in last year, 2023, sales from livestream commerce generated around 50 billion U.S. dollars. It has been estimated that by 2026, sales will increase by 36 percent.
As far as preferences go, a 2022 study reveals that more than a quarter of US adults who shop on livestreams prefer Facebook.
This surge can be attributed to the numerous benefits that shoppable livestreams offer, including increased engagement, product education, and a sense of urgency that drives impulse purchases.
Influencer-Driven Livestreams
Another key driver of the growth of livestream commerce is the integration of influencer marketing. By leveraging the power of social media influencers and their loyal followings, brands can tap into a vast pool of potential customers and create highly engaging and personalized shopping experiences.
Companies like Walmart have embraced this approach, partnering with popular influencers on platforms like TikTok and Instagram to host live shopping events.
During these events, influencers showcase and review products, answer questions from viewers, and provide exclusive discounts and promotions.
According to a study by Influencer Marketing Hub, influencer-driven livestreams can result in a 38% higher engagement rate compared to traditional influencer campaigns.
Furthermore, the authenticity and trust that influencers have built with their audiences can significantly impact purchasing decisions.
Livestream Commerce evolving with Augmented Reality (AR) and Virtual Try-On Experiences
As livestream commerce continues to evolve, businesses are exploring innovative ways to enhance the shopping experience further. One such approach is the integration of augmented reality (AR) and virtual try-on technologies.
Companies like NARS Cosmetics and Warby Parker have already embraced this trend, allowing customers to virtually try on makeup and eyewear during livestream events.
This not only provides a more immersive and personalized experience but also helps to reduce product returns and increase customer satisfaction.
Closing Thoughts on Livestream Commerce
Authenticity is an important element in building trust between a brand and its customers. People can be observed in their natural element during live streams, hence the appeal.
The impression of honesty and genuineness builds loyalty.
The lack of editors and traditional production strips the content of manufactured elements that can be found in visual ads.
The convenient form of Calls To Action on live streams skyrockets the engagement. Content creators can easily and frankly ask to leave comments, subscribe, or buy a product.
The conversational nature of stream content also plays an important role in marketing. Consumers feel like they can directly communicate with influencers they already believe in.
Interestingly influencer livestreams also add to impulse consumption. Certain livestreams, that are exclusive, build a fear of missing out, thereby making them feel like they’re getting a limited-time opportunity.
Judging by consumer behavior of this era, it is certain that social media holds the key to reaching and communicating with the target audience.
If you’re an entrepreneur, you should consider employing shoppable livestreaming to escalate engagement and sales.
Have you come across your favorite brands on live media? Share with us your experience!
