About the author : Alex Pana

Alex Pana is the Marketing Manager at Oveit, the US-based tech company that developed Streams.live. Prior to joining Oveit, he worked with 2 of the world's leading financial services companies. Over the last 4 years, Alex attended more than 100 live and virtual events, understanding how entertainment and digital payments work together. He is people-oriented and although his role is to share the word about Oveit's solutions, he loves to learn about people's experiences. Be they good or bad. He has a degree in Public Administration. This is where he first learned that small changes can result in big improvements. Having this in mind it was only normal for him to join Oveit.

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What is a shoppable video?

Shoppable video is video content that allows viewers to purchase products and services straight from that particular stream. When clicking a button within the video (or a specific part of the screen), a product is added to the shopping cart. 

To put it otherwise, it’s a video that actually does the sale. Let’s see why and how.

Context

2020 was overall a strange year. But it also showed us that we can adapt faster and better than ever before. And, amongst others, 2020 was the year of live streaming. Peoples’ attention was captured by streaming services at a rate never seen before, but anticipated by some. The speed with which video is taking over is indeed astonishing: Cisco predicts that by 2022 more than 80% of the total internet traffic will represent video consumption. A 1500% increase as compared to 2017.

Quality content became almost a commodity, as the majority of companies understood that video entertainment is the fastest way to connect with potential buyers.

But while the online is filled with video content, a primary need remains partly unsatisfied: the one meaningful experience. As “social animals”, we have a natural need for experiences that bring the “wow” factor.

Experiential marketing and sales

In the last 15 or so years, as e-commerce continued to grow, brick and mortar businesses had to find new ways to attract customers. A new concept emerged: “experiential marketing”. It focuses on creating a new experience for the customers, by allowing them to interact with brands and products in a new, memorable way. It grew, especially as the new generations value the purchasing experience as much as the products themselves.

As part of a company specialized in creating local payment environments for festivals and venues, I had the chance to directly observe how experiences impact the sales process. If you want to take a closer look you can read one of my past articles here

But as social distancing became the new normality, companies are forced to shift their focus almost entirely to the digital experiences. More and more players are now part of the e-commerce “battle”, forcing everybody to find new ways of capturing the consumers’ limited attention. 

Almost half of the 4.5 billion internet users made at least one online purchase. But 52% percent of them are constantly looking for new and interactive experiences while shopping online.

The rise of shoppable video

So, having video entertainment and online purchasing as rising stars, what happens when you combine them? The result is “shoppertainment” – I don’t know who used this term first, but it really gets to the core of shoppable video. The difference to classical videos is that “shoppertainment” is actually a shoppable video. It allows us to buy the product straight from this live experience. 

This inspired brands that were traditionally focusing on in-store purchases to take a dive into this new experiential trend. Brands that are consumer-centric, that transform the actual purchase into a breathtaking experience, are finding “shoppertainment” as a solid virtual alternative to the in-store visit. More and more companies that operate in the high-ticket product industries, like luxury and automotive, are adopting the shoppable video trend. As it is the best way to digitally recreate the shopping “adventure”.

Unlike other online purchasing experiences, the live stream shopping (another term used) experience allows consumers to buy the desired product without actually leaving the experience they are part of. It’s a see-now, buy-now experience. It started in China, where In 2019, live streaming commerce surpassed 433 billion yuan ($61 billion). And it’s changing global commerce. 

Live shopping as social commece

Social commerce happens through live shopping

Shoppertainment also focuses on creating the right environment for the customers to buy without pressing them to take action. It has a relaxed approach, where products are presented in a way that’s closer to entertainment than it is to classical shopping. While products are presented, viewers have the option to engage with the host, ask questions, and receive answers live. Considering that over 85% of online shoppers have at least one question they need to find an answer to before purchasing a product, the live interaction option is a real game-changer. 

Shoppable video as part of the sales funnel

Video is used as part of the selling process for more than half a century, as the first video ad has aired in 1941.

 

Used initially for the upper parts of the sales funnel, modern-day technologies allow digital marketers to move video experiences closer and closer to the last step of the process. Indeed, not all live stream shopping experiences end with a sale, but the experience itself is important for awareness and brand positioning as well. 

Throughout the sales funnel, video content follows the customer journey through different stages. Commercial videos, ads, webinars, how-to’s, and testimonials, all interact with your customers throughout the process. Shoppable video is special because it meets your clients in the “Action” stage. It brings you “face to face” right when they are ready to buy. And it allows you to showcase the product live, creating a branded experience. 

sales funnel with the shop now button added over it

Shoppable video is live. Considering that 82% of internet users prefer live video to any other form of content, it’s safe to say that brands can use the power of live stream shopping sessions in their favor. People prefer live video not only because it empowers communication, but also because it brings a note of authenticity to the experience. And when asked about it, 90% of surveyed customers said that authenticity is important when deciding which brand they support and buy from.

Go where your customers already are. Go live

Video is, by far, the most consumed content format. In 2019 alone, we’ve watched over 1.1 billion hours of video content. It’s hard for someone to say that potential customers are not already online, interacting with it. And as more and more brands focus on selling online, we need to find new ways to capture their attention. But more than that, we need to find the perfect way that allows them to have a frictionless, yet entertaining, shopping experience. 

And the shoppable video does it best!

About the author : Alex Pana

Alex Pana is the Marketing Manager at Oveit, the US-based tech company that developed Streams.live. Prior to joining Oveit, he worked with 2 of the world's leading financial services companies. Over the last 4 years, Alex attended more than 100 live and virtual events, understanding how entertainment and digital payments work together. He is people-oriented and although his role is to share the word about Oveit's solutions, he loves to learn about people's experiences. Be they good or bad. He has a degree in Public Administration. This is where he first learned that small changes can result in big improvements. Having this in mind it was only normal for him to join Oveit.

Live Stream Shopping fills the gap between in-store and online purchasing. Marketers and commerce specialists use it to create memorable shopping experiences.

Learn how it can help your business

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