More creative campaigns seen to drive shoppertainment sales

BUILDING community viewership through more creative campaigns is seen as a new sales model for shoppertainment businesses, according to industry experts.

Brands must utilize the human-machine curation of consumer data and pattern their community-targeted content from there, said Mohammed Sirajuddeen, managing director at Accenture, at the recent TikTok Shoppertainment Summit 2023.

“All of these collectives are realizing the value of coming together so they are able to get better offers,” he said. “They will be one of the key development drivers of how commerce will transform.”

“Consumers today are more open to participate in and review brands because of the democratization of creativity on online platforms,” said Shant Oknayan, head of global business solutions at TikTok.

“Users are looking for authentic content, inspirational videos, and a seamless shopping experience,” he said on the platform’s top sales drivers.

Shoppertainment is a fast-growing e-commerce opportunity that seeks to entertain and educate consumers to drive sales. It is projected to expand to a market value of over $1 trillion by 2025, according to the Boston Consulting Group.

TikTok has a portfolio of over 15 million businesses and a 325 million monthly user base in Southeast Asia (SEA) as of April. 

“We are committed to helping more than 120,000 small businesses transition online and participate in the digital economy,” Mr. Oknayan said on TikTok investing a $12.2-million grant for SEA small and medium enterprises (SMEs).

The grant includes providing businesses with digital skills training, advertising credits, and cash grants, alongside partnerships with non-government organizations.

In the Philippines, a growing number of businesses are shifting toward digitization and shoppertainment through online platforms.

“In just the past months of 2023, there has been a 117% year-on-year surge in the number of sellers joining our platform,” said TikTok Philippines on its Shop growth in an e-mail interview with BusinessWorld.

“Notably, within the same timeframe, there was a 53% year-on-year increase in sellers who have achieved breakeven status and are poised for more long-term success,” it added.

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The growth of shoppertainment has led 92% of users to take action after watching a TikTok from a brand, according to TikTok SEA.

However, businesses are now faced with the challenge of making creative campaigns that work for their target market.

Dian Fiona, founder of clothing shop Jiniso Jeans, said in the summit that listening and adapting to her customers’ feedback helped her business transition online and even grow to over 2 million followers.

Making organic entertaining videos and livestreams has led my business to receive 50% of its revenue from TikTok alone, also landing a top spot in the fashion category, she said.

“Stay consistent and you will see loyalty and results in one or two years,” she added.

“Genuine storytelling and educational value are powerful tools brands can immediately utilize, especially through a video-first approach that captures and maintains consumers’ attention,” TikTok Philippines said.

“Appealing to consumers’ emotions ignites inspiration that converts customers to new products and brands,” it added.

The hashtag #TikTokBudol has garnered over 3.3 billion global views on the platform. Alongside its curated algorithm, users can discover businesses regardless of active looking or casual browsing.

“Reviews and recommendations create a widening cycle of interaction and customer conversions,” TikTok Philippines said. “While the use of trending hashtags leads to brands and businesses of all sizes being easily discovered.”

“Consumers don’t want to be spoken to. They want to be interacted with,” Mr. Oknayan said. “Brands need to lean into that consumer shift.”

“The brands we see having the most success are those that embrace the creativity and authenticity of the TikTok community,” TikTok Philippines said.

“A few seconds of authentic creativity on TikTok often turn into greater community engagements and trigger trends with broad cultural impact,” it said.

“Moments turn to movements as videos are discovered, shared with new audiences, and continually evolve.” — Miguel Hanz L. Antivola