Marketers are increasingly focusing on presenting potential buyers with a mix of product video as a model that adopts live commerce goals based on consumer-based and consumer-focused product discovery.
The developing new marketing method shares many names. The foremost usage centers on live commerce and livestream shopping. Whatever you call it, marketing strategy allows sellers to showcase products to a live, online audience who can participate in the experience.
This method of showcasing merchandise is common on social media and is now slowly finding new website outlets. The format is very similar in that it enables buyers to communicate directly with promoters through online video and chat.
Industry analysts project Interactive Live Commerce will generate $25 billion in revenue by 2023. They further predict that live commerce sales could generate 20% of all e-commerce by 2026.
This trend began in 2016 with China’s Alibaba online shopping network and has proven to be very effective in Asia-Pacific markets. The innovative approach established the success potential of blending online livestream broadcasts with an e-commerce store to allow viewers to watch and shop simultaneously.
Buyable videos, on the other hand, have a similar role to customer engagement, but they are more limited than live purchases. Shoppable videos contain retail products available for consumption with a link embedded within the video. Clicking on those links redirects viewers to the purchase window without leaving the video page.
As we recently reported, live shopping probably won’t grow as widely with US customers as it is in the Asia-Pacific market. Nevertheless, merchants should not flag potential live shopping offers for increasing e-commerce sales.
Overarching Customer Engagement Approaches
One of the key features of shoppable videos is the “add to cart” feature offered by Jennifer Silverberg, CEO of SmartCommerce, a consumer packaged goods digital marketing firm. Their company’s advertising content for customers is designed with dynamic features that take into account the user’s context to enhance the experience.
“It helps marketers create interactive advertising experiences that put consumers in the driver’s seat,” Silverberg told the E-commerce Times.
Traditional video advertising strategies rely on third-party cookies for targeting, while interactivity allows brands to not only measure authentic actions, but also use those metrics to optimize campaigns and drive actual purchases . Purchasable ads can unlock views in details relevant to specific groups of consumers without the need to leave the video.
Kerv Interactive is a platform provider of technology aimed at reducing additional costs and production times for creating shoppable ads.
“Whether to purchase with a QR code on CTV [connected TV] The ad or product tile in a digital or social video ad has the ability to drive brand consumers to a destination relevant to the time of day or location, and/or serve creatives that take into account the location, time of day, or weather. can,” Kerv COO Marika Roque told the e-commerce Times.
However, the terms and their strategies are not interchangeable. Shoppable and live commerce video serve the same purpose but have their own approach to consumers.
An essential role of a buyable video is to drive greater customer engagement through the ability to buy immediately. Videos are looped and recorded before they are posted, so that buyers can watch them whenever they want.
Live commerce videos, on the other hand, are real-time events that the host is involved in. This approach promotes entertainment, education and product all at the same time.
Benefits of live commerce
One advantage of livestream shopping is that online customers see the products they are interested in. Silverberg suggested that the content is no longer displayed by third parties that decide what buyers see.
“Now I am being invited through my filter. What I saw contains information that is highly relevant to me because I have been invited,” she said in the pattern of audience response.
Viewing appeal is getting buyers to engage with a topic and a presenter that the audience can relate to. Engagement matches the context of the lifestyle or gives the audience a way to emulate what that presenter represents.
“Now I am being offered a product that I think is getting me closer to that interest. It is completely different,” said Silverberg, speaking as a potential buyer.
Another powerful driver of live commerce is the high conversion rate compared to other online marketing methods that the livestream approach achieves. He said that, to some extent, viewers are already opting to watch live video.
“Conversions always come down to matching strategy to consumer expectation and product category expectation. When you get all of those things right and when the message is relevant, then you get a 70% conversion rate,” Silverberg explained.
“It always matches where the consumer is to their propensity to take action,” she said.
The deciding factor
Shoppable ads are a largely untapped measurement tool that allows brands and content platforms to solve cross-platform measurement. They provide new forms of data at a time when consumers are becoming increasingly careful about sharing their information, Kerv’s Roque said.
According to Silverberg, the difference lies in what’s happening beneath the surface. She thinks consumers have become more vulnerable to spam, and to shoppable ads and live commerce addresses.
According to Silverberg, the cost of producing a live commerce presentation can be an advantage over a buyable video, with the potential for higher conversion rates. Shoppable videos also get more conversions.
Traders are increasingly using live commerce strategies. So are social media influencers, and anyone anywhere can use the marking tool. The cost of making a live commerce show depends on the product category.
“If you are intelligent and create something that is both entertaining and relevant and can be shown to a wide audience, the cost makes perfect sense,” Silverberg replied without offering more specific pricing.
in-house or outsource
Keep in mind that live commerce strategies can drive sales more quickly. The results come from the ability to garner a larger immediate audience than other marketing plans.
Plus, the additional personal engagements associated with live commerce justify the associated production costs. According to market research, video content tends to have more engagement than other types of content.
This encourages buying as well as building brand awareness more effectively. Some industry reports suggest that audiences are more likely to share recorded productions with their friends than they usually do with static ads.
A final consideration is whether to opt for in-house production or contract with a professional marketing service. If you opt to do it in-house, expect to get live video shopping tools, a live chat platform, and shopping cart integration.