The Influencer Marketing Factory just released the results from their Livestream Shopping Survey. Whether you’re beginning to explore the concept or already have a livestream shopping strategy in place, the results of this survey will help sharpen your focus as you head into the new year. Read on to learn more on livestream shopping and the latest statistics.
What Is Livestream Shopping?
Livestream shopping allows customers to buy items in real-time as a host demonstrates a particular product’s features. Livestream shopping occurs through a scheduled live event on a social media platform. These events are structured so viewers can make purchases while the event takes place through the simple click of a button.
Like televised home shopping networks like HSN or QVC, a celebrity or famous personality hosts livestream shopping events. However, it’s common for nano or micro-influencers to hold these events with a more niche audience. Today, livestream shopping events are gaining the most popularity within the US and UK, but the concept is gaining traction in other countries, like China.
Analysts predict revenue from livestream shopping events in the US to reach $20 billion by the end of 2022 and grow to around $60 billion by 2026.
In October, the Influencer Marketing Factory surveyed a total of 2,000 respondents, 1,000 based in the US and 1,000 from the UK. Survey participants were between the ages of 18 and 67. The survey aimed to gain insights into livestream shopping behaviors, specifically their preferences and purchasing patterns. There were also questions about which platforms respondents used the most and how they preferred to support top influencers.
Influencer Marketing Factory looked at a number of data points related to consumer behavior and livestream shopping events. Here are some of the main takeaways:
Livestream Shopping by Age
Out of all survey respondents from the US, 36% said they purchased something during a livestream shopping event. 25% of UK respondents made a purchase. Here’s how many respondents made a purchase by age group:
1. 19-25 (47%)
2. 26-35 (30%)
3. 46-55 (18%)
4. 36-45 (16%)
5. 56-65 (9%)
6. 66 and older (9%)
In the US, the top five preferred livestream shopping platforms were:
1. Facebook (26%)
2. Instagram (19%)
3. TikTok (18%)
4. Amazon (18%)
5. Pinterest (6%)
Respondents from the UK shopped the most from these platforms:
1. TikTok (30%)
2. Amazon (18%)
3. Facebook (17%)
4. Instagram (16%)
5. Pinterest (6%)
The Amazon Live shopping feature experienced significant growth in 2022. The online commerce giant formed partnerships with top influencers and celebrities to host curated livestream events. During Amazon’s signature Prime Days initiative, over 100 million views were captured in the thousands of unique livestreaming events.
Quality Is Key
Survey results revealed that the top two reasons for joining a livestream shopping event were entertainment and the desire to take advantage of a discount. Other reasons included:
- Knowing and liking the show’s host.
- Being part of an exclusive event.
- Purchasing something from a unique or limited collection.
The survey also uncovered some of the top reasons both US and UK respondents made a purchase during a livestream shopping event. The number one reason was the quality of the product sold. In addition to product quality, respondents said free delivery, discounts and coupon codes, and reviews from other customers were also top reasons for engaging in livestream shopping.
Additional reasons participants decided to purchase were the host’s or influencer’s personality, the quality of the livestream itself, and interactions between the hosts and guests.
Stats On Spending
In the US, 27% of livestream shoppers spent between $20 and $50 during an event. 24% paid between $50 and $100, and 16% spent between $100 and $200. In the UK, 31% spent between $10 and $20, 29% of shoppers spent between $20 and $50, and 23% paid anywhere from $50 to $100 per event.
In both the US and UK, the survey found that these product categories were the most popular on livestream shopping events:
1. Apparel and fashion
2. Personal and beauty
3. Consumer electronics
4. Food and beverage
5. Home Furniture
Because of their lower price points, Influencer Marketing Factory believes both the apparel and fashion and personal and beauty categories will continue to perform well.
The survey found that trust was one of the most significant factors in a livestream shopping event’s success. When an event’s host is a big-name celebrity or influencer the audience likes, knows, and trusts, an audience is more likely to make a purchase. If customers relate to the host, they can better picture themselves using the product at home.
Many popular platforms have an interactive chat feature where hosts can answer questions throughout the event. Doing so helps foster a sense of trust amongst the audience and boosts conversion rates. The chat feature is also an excellent tool for brands to monitor feedback trends and take action to remedy any concerns or complaints.
Although artificial intelligence (AI) is gaining momentum, customers still prefer interacting with live humans over robots. This is especially true when it comes to making purchasing decisions. Brands looking to grow and foster trust with their audience and consumer base would be wise to implement a livestream shopping strategy as we head into the new year.
One of the main benefits of hosting livestream shopping events is creating a customer community where you can roll out new products and services. Brands don’t always have to partner with big names to have a successful livestream, as nano and micro-influencers can also provide that trust factor with your audience. Simply having a live person on the other end to field questions and demonstrate products goes a long way.
As social media continues to grow in popularity, expect more users to make purchases directly from their smartphones. Livestream shopping events are an effective way to increase your revenue while making it easy and fun for your customers.