How Brands Can Thrive By Going Live, Part 1
This is the first article in our three-part series on ways that brands can leverage the rise of live commerce. In Part One below, we explore why live-streaming matters and how to understand the platform landscape. In Part Two, we share the pros and cons of live-stream platforms across industries. In Part Three we discuss the emerging best practices for live content and where to look for inspiration.
As live content continues its rapid rise, brands are rushing to get their strategy ready for prime time. Live commerce is formidable, having reached $17 billion in the US in 2022 and projected to hit $55 billion by 2026. While the US is still far behind China (which generated $514 billion in live commerce sales in 2022) brands taking a proactive, test-and-learn approach now will be ahead of the game as adoption accelerates.
To develop an effective live strategy, brands need to carefully consider their goals, understand what makes live content so impactful, identify the right platforms and hosts, develop optimized offers, and find ways to extend the value of the experience across social. As Qulture’s founder Quynh Mai recently stated in a broadcast interview for CNBC on live shopping, “People want to buy products with meaning or products that they can’t get anywhere else. And that’s really what’s the underpinning of live shopping in the U.S.”
The Allure of Live Experiences
While it may not be the right fit for every brand, live content engages fans as few formats can. The unpredictable nature of these shared experiences creates a real-time connection between the host and the viewer simply not possible through asynchronous commenting in social feeds. That dopamine hit you get when the host answers your question or acknowledges you live on camera, sparks a positive feedback loop and creates a communal experience.
For users who watch live-stream videos on TikTok, 62% watch them every day, giving brands a consistent new channel to tap into. Done well, these moments can foster intimacy at scale and drive ROI across the funnel from awareness to revenue. Done poorly, they can spark brand blowback. The solution? Start with shorter sessions, plan precipitously, and choose a platform that aligns with your goals and audience.
Live Commerce Platform Use Cases
Increasingly, there are a range of live commerce platforms for brands to consider. These include native social platforms, marketplace platforms, and “live” software providers that enable brands to host live shopping on their own websites.
While social and marketplace platforms are ideal for reaching new audiences, brand website-hosted live sessions can be exclusive experiences for existing customers. The organic beauty brand Pai Skincare (a Qulture client) teamed with Bambuser to launch their own live-streams and saw a 17% conversion rate, a result six times higher than the industry average.
In our next article in this series, we will share the pros and cons of live-stream platforms across industries. To learn more about live shopping from Qulture’s Founder on the subject, watch CNBC’s episode here.