2022 gave rise to shoppable video and it took on different forms, from live events to video reviews. Challenger brands seem to have embraced the concept faster than established brands. I suppose this is because they are working with smaller budgets and need to be more creative (frugal) with their budgets. Some would say that challenger brands are less risk averse but I would say they are just doing whatever they can to survive and win. All brands need to act like challenger brands during a recession.
Now that we are into the 2022 holiday shopping season and thinking ahead to 2023, more and more brands are looking to enter this space. As with everything in MarTech, it can be confusing to enter into this space. There are no shortages of platforms, big and small. From Amazon/Twitch to Walmart to YouTube to Radd, tech companies are trying to carve out their place in this category. I like to refer to this category as micro-home shopping. In the 80’s, The Home Shopping Network and QVC were popular among older demos and people with insomnia. I am pretty sure I bought strips of grass that you just roll out and water during one of my sleepless nights, or maybe it was copper pans… Today’s model is more about peer to peer which can be so much better. It’s really a mashup of UGC, video, reviews, home shopping, and loyalty. So, as we feel a recession looming, could shoppable video take off in 2023?
Here me out: Marketers know that the brands that increase advertising during a recession, see record growth in the decade following that recession. In a recent Adage article, they cited a report that stated 60% of brands that increased media spend in the last recession saw greater ROI, and those that spent more on paid advertising saw a 17% increase in incremental sales. The article also talks about how brands need to focus on loyal customers during a recession.
But still, many brands will slash budgets because they are scared, investors demand they cut costs, or they are managed by executives who don’t understand the human psyche. So to these companies and everyone else, I offer these ideas:
- Leverage your customers to create marketing messages for you:
- Video Reviews right on your website, PDP’s, emails, social media, and ads
- Live Streaming event with your most loyal customers or product experts
- UGC video that can be used on platforms such as TikTok, YouTube, and Meta
- Reward your best customers for their efforts:
Once you have shoppers engaged via your new user generated content, direct them over to a sales expert that they can have a live video chat with to ask questions and complete a purchase. Feel is a leader in this space and will work on commission only (they provide the platform and the sales experts) so it’s another low risk way to engage with customers and increase conversions.
When the recession hits, everyone’s first reaction will be to buckle down and save. As Marketers, it’s our job to show our customers that we understand their concerns and care about them. This will make them loyal in the long run. In the short-term, brands still need to make money to survive so the less they have to spend on marketing to generate growth, the better for the bottom line.