What is the outlook for Video Commerce in 2024 and 2025? We decided to do an outlook for 2 years, as we feel that Video commerce is at an inflection point. Video commerce is firmly on the agenda for many retailers and eCommerce operators alike. We have seen success and growth in the last 3 years and in that time the various players, including Confer With have been innovating – finding that right fit for consumers and brands. That innovation is operationalising – exciting times. We thought we would use that as a basis for our outlook for the next 2 years as it starts to take hold.
The Consumer in 2024 and 2025
People have been bombarded with so many messages over the last few decades and the snow blindness experienced by consumers is well documented. The bombardment is only going to get faster with the onset of cost-of-living pressures (supressing demand) and AI (increasing supply of marketing messaging). Marketers have now well and truly found an efficient way to turn up the volume with AI, but the consumer have become numb to being sold to and have less money to spend. Something’s got to give. Increasing volume of messaging regardless of the quality is not going to cut it. The consumer is changing.
Consumers want a meaningful experience when making a purchase decision. They will have specific questions, will want to validate that decision. Customer experience is key – and the depth of that customer experience will matter when a customer decides where to spend their hard-earned disposable income. Personalisation and human connection become the primary to gain attention. A human experience where 2 people connect and discuss their chosen topic, with body language, voice tonality, common experiences will become more primary.
Once a customer makes that connection, it will last – almost as a defence against the expected increased bombardment of messages out there.
So, brand will need to get that experience right.
Video commerce has a lot of that richness to get it right and Video commerce and specifically live commerce should be on every brand and retailers’ agenda in 2024 and 2025.
Here are the 10 predictions for video commerce in 2024 through 2025
1. Social Media Platforms as Primary Channels
Social media platforms will increasingly become primary channels for live commerce. With their massive user bases and integrated payment systems, platforms like Instagram, Facebook, and TikTok are ideal for hosting live shopping events. They will likely introduce more features specifically tailored to live commerce, such as enhanced live stream capabilities and integrated CRM systems. Onsite one to many live commerce will be there, but the inevitable shift back to social media platforms (where the audiences are) will be the trend.
2. A Pivot Away from Live In One To Many Video Commerce
Interestingly, Meta made this change last year, signalling a change of direction from the Chinese model of always live in video commerce. While consumers in the US and Europe haven’t taken to the live model as enthusiastically as China, this also plays into the scaling sensibilities of the Silicon Valley set. The one to many video platforms have followed suit. The Shoppable videos built by Lisa are a perfect example of this. These will sit on social media and will be consumed on social media. We expect this to take hold over the next 2 years.
3. The “Exclusive and Premium” Service Offering In 1:1 Becomes Mainstream
1:1 live commerce is likely to evolve as a more personal shopping experience. Brands might offer personalised sessions to high-value customers, loyalty program members, or on a subscription basis. Soon, brands will realise that this can be scaled in such a way that brands and retailers that can “major on service” as a differentiator. Majoring on service can make customers feel valued and special, which is a key differentiator in an environment where brands need to cut through.
4. AI-Driven Personalization Will Enter the Toolset and Give Superpowers To Hosts.
Artificial Intelligence will play a pivotal role in personalizing live shopping experiences. AI can analyse customer data to predict preferences and suggest products during a live session, making the shopping experience more tailored to individual customers – but it will be moderated by a human. So, AI assisted for the next 2 years.
5. One to many Video Commerce will become a media tool, taking a share of creative budgets.
The proliferation of offline shoppable videos and the integration into the social media platforms will turn shoppable video into a creative execution – and become a format unto itself. This will be more efficient than the traditional creative development formats, but also more powerful than the AI generated toolsets out there. Human intervention at scale will win and that will emerge to become the dominant ad format.
6. A Greater Emphasis on Community Building in Live Commerce
Live commerce and video commerce will focus more on community engagement and building. Brands will use live commerce not just to sell products but to create a community around their brand. This includes interactive sessions with influencers, Q&A segments, and incorporating user-generated content. This approach will foster brand loyalty and create a more engaging and interactive shopping experience.
7. 1:1 Video Commerce will Integrate with Advanced Customer Relationship Management (CRM) Tools and will have a Tangible Impact on Customer Retention and Lifetime Value
To effectively deliver 1:1 live commerce experiences, businesses will integrate advanced CRM tools into live commerce. These tools can provide live personal shoppers with real-time access to customer data, purchase history, and preferences, enabling them to offer highly customized recommendations and support for customers who demand it. 1:1 live video will therefore become a capture channel and a loyalty enabler
The personalized nature of 1:1 live commerce is expected to have a significant impact on customer retention and lifetime value. By creating memorable and tailored shopping experiences, businesses can foster a deeper emotional connection with their customers, encouraging repeat purchases and long-term loyalty. Over the next 2 years this will be measured and become a key indicator for live commerce.
8. Use in Omnichannel Strategies Will Continue to Proliferate Via 1:1 Live Shopping
1:1 live commerce has always been seen as a key Omnichannel execution. This will deepen to become an integral part of omnichannel retail strategies. It can bridge the gap between online and offline experiences, offering a service similar to a personal shopping assistant in a physical store but in a digital environment. As more brands come online with 1:1 live video shopping – this will add volume and become a prominent number in every weekly trading report.
9. An Evolution the Role of the Store Associate
Given 1:1 live commerce can be executed anywhere (and not just in a retail environment), the store associate will be offered more flexibility in their workplace. Calls can be taken from home. They can be taken from visual studios (and yes, still in a store – see below). This will have an impact on how store associates are employed:
- Store associates will have the opportunity to work from home some days (just like the office manager)
- An ambitious store associate can gain extra hours by working from home
- There will be store associates that are majority work from home
As the growth of 1:1 live commerce, retailers and brands can respond to the current demands of store associates and give them flexibility and opportunity for growth in their employ – this will be a differentiator for employers.
10. There will be a fundamental change in the way space is used in retail
As 1:1 live shopping grows, there will be increasing space demands on retailers to have the optimum environment for live shopping. Space is getting freed up in stores – and high value formats will be given priority for that space. Visual studios inside stores, showcasing a shop from home service in a retail like environment will become a common brand execution. In the process, store formats will evolve to account for this.
So, there you have it – these are our predictions for not only 2024, but also 2025 – we have some super tends in there and it’s going to be an interesting ride in the next 2 years for live commerce. How do you act? – first thing is to get it on your agenda if its not already there. If you are in live commerce already, capitalise on these trends.
Get in touch if you’d like to discuss how live shopping can help your business!
