Early Lessons From Livestream Leaders

Live content provides consumers with a sense of timeliness, community and connection to brands not possible in any other format. While it's still early days here in the US, we're following the trajectory of Asia where live-streaming is commonplace and expected to hit $120 billion this year. One recent shopping festival by Alibaba in China generated $6 billion with 300 million Taobao users tuning in. First movers here in the States have a chance to optimize their approach, get a head start on emerging platforms and generate earned media.

One of the strongest examples of live stream shopping is NTWRK, a video shopping app referred to as the "QVC for Gen Z." The app sees between 11,000 to 20,000 active users during their livestream product drops. A recent shopping festival on the platform, Off Court, consisted of 66 product drops over two days — with the most expensive being an artwork that sold for $4,800. Other products for sale included sunglasses by Oakley, and limited edition hats by streetwear designer Don C and Hummer EV. Though NTWRK is known for sneakers and streetwear, women are one of their fastest-growing segments. A recent drop for a Chipotle-inspired makeup palette by e.l.f. sold out in under 11 minutes. Looking ahead, NTWRK is expanding to reach CPG brands with a food festival in April building on the success of their livestream sneaker collaboration drop with Chips Ahoy.

TikTok Fashion month returned this February with livestreams from luxury leaders like Balmain to influencers like Bryanboy that generated an average engagement rate of 19.7%. Posts featured runway looks, behind-the-scenes content, and commentary. Compare that to the average engagement rate on Instagram that hovers at a paltry 0.98% (or Facebook's average of 0.08%) and it's clear there are better options out there beyond the pay-to-play platforms.

Given consumer's preference for live content over the Feed and Stories, along with its direct line to revenue and deeper engagement, 2021 is the year future-focused brands need to get serious about going live.

This article originally appeared in the March 31st, 2021 issue of Moving Image & Content’s agency newsletter. Subscribe here