Study: How to make shoppertainment work best for your brand
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An extremely digitally connected region, APAC’s digitally engaged consumers spend an increasingly large amount of their time online, but are easily distracted by the diverse range of digital channels and clamour of brand messages. On average, APAC consumers spend 6.7 hours online daily across various digital devices, more than consumers in North America and Europe, according to a study done by TikTok and Boston Consulting Group. However, online experiences have now arguably reached a saturation point for advertising, creating challenges for marketers seeking to encourage greater engagement in the face of changing consumer appetites.
According to the study, consumers are now ready and able to steer their own journeys to achieve their eCommerce needs, through expanding technology capabilities and growing online confidence. These tech savvy consumers have greater choice and control, shifting away from transactional to experiential engagement and connections with brands.
Consumers are suffering from decision inertia with multiple consideration pathways confusing their journey to purchase, and growing skepticism of branded content. Around 26% of consumers require more time to consider purchases, 46% complete a purchase on a different day, 85% switch apps when progressing through a purchasing journey, and 34% are now skeptical about branded content. This transition of consumer behaviour is shifting marketing dynamics, as unmet consumer expectations are creating a disconnect, causing brands to lose out on consumers.
What can brands do to retain consumers?
According to the study, shoppertainment is one way to open up new revenue streams for brands in APAC through content-driven commerce. Shoppertainment is content-driven commerce which seeks to entertain and educate consumers first, while integrating content and community, to create highly immersive shopping experiences. With a projected market value of US$1 trillion by 2025 in APAC, brands have the chance to engage and attract digitally exhausted customers across the region. The market value of shoppertainment is currently standing at US$500 billion today.
Shoppertainment appeals to consumers who desire authentic and emotional brand content driven by experiential engagement. This is about entertainment-first engagement, backed by a clear and informed consumer journey, and inspired by key enablers such as influencers, consumers, and brand efforts. This content can be delivered through a variety of content platforms, utilising trending social media and eCommerce platforms to rapidly amplify authentic brand messages. These outreach efforts can be launched through a variety of content types including video, livestream broadcast, shoppable TV, and shoppable live events, and catalysed by shared passion, expert advice, and trends .
Unsurprisingly, fashion and accessories make up the biggest portion of shoppertainment, followed by beauty and personal care, and F&B close behind.
APAC’s Shoppertainment growth markets
The study added that in APAC, key high-growth markets are Australia, Indonesia, Japan, South Korea, Thailand, and Vietnam. These markets will drive significant value opportunities with total e-commerce GMV rising from US$500 billion to US$700 billion from 2022 to 2025. Shoppertainment GMV is rising from US$24 billion to US$100 billion 2022 to 2025.
Brands should seek to engage Shoppertainment and market growth through five emotional touchpoints, adapted to meet the needs and desires of a given market:
• Tell stories and educate
• Focus on video-first
• Don’t force decision-making
• Be authentic
• Recommend the trends
These concerns will be complemented by fundamental needs within the functional demand spaces to provide clear information and ensure a clear path to purchase. Brands can inspire Shoppertainment growth through a four C’s strategy for success.
•Campaign strategy with clear planning that smooths pain points while focusing on entertainment
• Customer segmentation that identifies the right customers at the right time to inspire switching
• Channel management with dedicated resources to unlock opportunities
• Content playbook that operates a video-first approach to inspire and inform consumers
Shoppertainment offers the potential for brands to engage consumers within emotional demand spaces by delivering content that ignites excitement, trust, knowledge, and passion. In doing so, brands have a chance to inspire key switching behaviour that engages customers at the “moment of truth”.
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