Live stream shopping is a huge industry in many countries. In China, selling through live streaming is a leading sales platform. However, it has yet to take off in Australia and New Zealand. There are currently more than 200 live streaming sites with over 700 million users in 2021, reported Influencer Marketing Hub. Over 400 million of those purchased via a live stream platform.
China’s live streaming market is anticipated to reach US$103.39 billion in 2026, according to Research and Market’s report “China Short Video & Live Streaming Market: Insights & Forecast with Potential Impact of COVID-19 (2022-2026)”. Live stream marketing isn’t for every brand or sector. At this stage for the ANZ market, it works out as a brand awareness or excitement drumming solution.
Live stream shopping in Australia and New Zealand: will they or won’t they?
In Australia, Shopify released an integration with Youtube in 2022. This integration allows creators to now tag products related to their live stream directly from the live control room. For example, confectionery giant Kitkat tapped on the powers of live stream shopping downunder.
The company promoted their new products to their audiences through their live streams. They offered options to buy online and in-store while encouraging in-store visits. This campaign boosted brand awareness amongst 35 – 44 year olds.
Despite the trend, social media platforms like Facebook and TikTok have back-pedalled on their live stream shopping offerings in this region. Prior to the end of Facebook’s live shopping function in Australia, the company even announced a shutdown of their live stream app “Super” for February of 2023.
According to Savvy’s Australian online shopping behaviour report, 30.3% of Aussies bought something via social media. Oliver Tatlow, Reckitt Hygiene’s Managing Director for Australian and New Zealand told AFR that, “Online will be the largest sales channel in Australia and New Zealand within the next five years.”
Although the technology is present in Australia, there is a lack of interest. This can be attributed to mistrust in social media content and big companies or a lack of emotional investment in brands. Online shopping has grown in a post-covid world but ecommerce companies like Amazon have experienced a fluctuation in stocks.
Ultimately, consumer behaviours in Australia are constantly changing and live stream shopping might slowly catch on. When more brands start offering their products through live stream shopping, the Australian market will jump on.
Considerations for stronger customer lifetime value
With so many channels and platforms within a finger tap’s reach of consumers, consumers can easily access the information they need to inform a purchase. Brands need to understand how to communicate that information consistently and efficiently so as not to lose consumer interest.
Placement and seamless embedding of purchasable/discoverable products into a live stream shopping experience is crucial as well as embedding of product information.
Ultimately, live stream shopping is a high-engagement, brand awareness and product education tool. You should also emphasise high discoverability on your social platforms. As with most social functions, you have to know how to make it relevant to your consumers.
A report released by Instagram in 2023 reported that social media users are excited for face-to-face interactions with digital relationships. They also want their favourite influencers to get into new forms of media such as live stream shopping. Picking the right influencer for your live stream marketing campaign may be the answer for your brand.
Three elements of live stream marketing success
1. A trending topic or person
Among the most effective and frequently-used strategies for live streaming marketing, hiring a celebrity for a campaign is the most effective one. However, engaging with a group of social influencers which are relevant to your brand can be effective too. .
Finding trending topics to engage with relevant influencers is also a successful strategy in building a live stream marketing plan. Using media monitoring and social media intelligence can help in finding those topics.
For example, according to Isentia’s social media research into the luxury sector, organic buzz led by influencers and celebrities have increased more than three times since 2015.
2. Content is crucial
While people may be attracted to celebrities, the key to a successful live streaming campaign is to have engaging content. This content must be relevant and informative that keeps people watching until they take action.
Other common formats for live streaming campaigns include fashion shows or product launches. They are used as a tool to amplify the impact of the offline events and attract more audiences.
In China, cosmetics giant L’Oréal invited celebrities Gong Li, Li Bingbing and Li Yuchun to live stream behind-the-scenes segments at the Cannes Film Festival for its official Meipai account. During the live stream, the stars recommended lipsticks they used. After four hours of live streaming, the featured lipsticks were sold out online.
Other creative formats for live streaming campaigns include sharing new technology, teaching audiences about how to use new products, and revealing backstage or production procedures.
3. Creating urgent demand live
In a KPMG report on consumers, price remains the key driver behind online shopping. Consumers are more price-sensitive during online shopping, and discounts are a major driving force.
Live streaming dramatically increases sales conversion because it creates urgency among viewers. They might miss out on a deal if they don’t act quickly. Whether it is a good price or availability of stock, viewers will be pressed to act.Live stream shopping should be a new platform for brands. For brands thinking about tapping into the live streaming market, we suggest starting with research and using tools such as media monitoring and social media analysis to uncover any live streaming case studies within your industry.