The latest study titled “Future of Commerce” by mobile video platform TikTok predicts that “Shoppertainment” (shopping with entertainment) may reach a market value of over $1 trillion by 2025, more than half or 55 percent of which will be contributed by the fashion, beauty, food & beverage, and electronics sectors.
Conducted in partnership with management consultancy services firm Boston Consulting Group, the study also found that shoppers these days are looking for brand connection which may explain why consumers skipped 90% of digital ads regularly.
“Consumers today now consider and seek elements of fun and emotional connection with brands when shopping, regardless of whether they are actively looking for a product or casually browsing,” said Paolo David, head of Brand Partnership, TikTok Philippines.
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Consumers easily lose interest in brands that offer overly exaggerated, picture-perfect, and polished advertisements.
“Content that is authentic, credible, aligns with shoppers’ interests and passions, and does not force decision-making, establishes and reinforces the trust and relationship with consumers,” David said. “When it comes to the commerce side, two deal makers for consumers are having clear information and the ability to purchase straight away.”
According to the study, 73% of TikTok users say they feel deeper connections to brands on TikTok than on other sites and apps they use. Moreover, 87% of users say video content on TikTok influenced their recent purchases.
“Brands can reignite purchasing passions by putting entertainment at the foremost,” David said. “TikTok can support brands and advertisers in their quest to reach and engage consumers as the platform has integrated solutions built for entertainment and authentic interactions, enabling impactful commerce results.”
According to the TikTok study, brands can observe these entertainment attributes if they want to stand out in the Shoppertainment are:
1. Focus on video first. Embrace a video-first approach defined by short content that maintains attention
2. Don’t force decision-making. Ensure content is associated with interests and hobbies that align with your consumer, and don’t seek to force decision-making.
3. Be authentic. Create an authentic brand sentiment, with credible reviews and open and engaging community conversations, and lead with authentic videos that inspire within a community
4. Recommend the trends. Include the voices of credible and trusted community experts, and facilitate extended conversations between friends and users. Build this into a strong and trusted culture and following.
More and more brands are utilizing the platform to connect and grow their communities. Trends like #TikTokMadeMeBuyIt or more specifically #Budolfinds in the Philippines, gave more brands and businesses the opportunity to expand to the digital space, converting more consumers into customers.
“With the continuous development of innovative technologies, the potential for brands to integrate entertainment into their marketing strategies are endless,” said David. “The future of commerce is Shoppertainment, and it is on its way to redefining the formula of brand success.”