There is a saying that goes like this: Where the capital flows, there is a hot land. Because capital has the most sensitive sense of smell, they will definitely go to the emerging industries with the highest rates of return, and they will get together. Like capital, the wind direction of enterprises is the same. Wherever it is, the wind direction of enterprises will change.
Just as everyone was discussing private domain traffic in the first half of the year and recruiting community operations, private domain traffic was a hot spot at that time, and everyone was digging into it. In the second half of the year, a business that had been silent for many years, combined with e-commerce, soared to the sky. This business was live broadcasting. After opening up the e-commerce, a new gameplay appeared: live streaming with goods. It is expected that the live streaming will be the traffic depressions in the second half of 19 and early 20s. By the second half of 20, the dividends will disappear. By then, the depressions will be filled and the bayonet will be in the Red Sea.
This article analyzes the new traffic depressions, the gameplay and routines of live streaming with goods from the following four aspects.
- What is live streaming
- Who are the participants of the live broadcast
- How do e-commerce companies carry out live streaming
- The future of live streaming
1. What is live delivery
Live delivery of goods refers to the mode of selling goods through live broadcast on a live video platform. At present, the delivery platforms are mainly Taobao, Kuaishou, and Douyin. E-commerce platforms such as JD.com, Pinduoduo and Youzan have also begun to test the way of live streaming delivery.
The reason why we say that live streaming is a traffic depression at present is because the current stage of live streaming is very much like the early stage of Douyin and the official account. After careful recall, the 18-year-old Douyin and the 14-year official account, right? Any content that can be used to increase fans can be as difficult as the sky. The current live broadcast room is just in the stage of attracting fans. Focusing on gifts in the live broadcast room and giving vouchers are the current mainstream gameplay.
The age of the crowds is beautiful, indicating that the user’s attribution has not yet settled. Why one sister and one brother can bring tens of millions of goods in a live broadcast, in the final analysis, is determined by the relationship between supply and demand. For example, there are 1 million live broadcast users in the market, and there are only 10 broadcasters, and each person can be allocated 100,000 or higher traffic. If the broadcaster has 1 million, then the fierce competition can be imagined.
As long as supply is less than demand, it is a bonus period and a flow depression. During this period, there will be a large number of players entering, it depends on who starts quickly. When supply and demand balance, it will be too late to re-enter. If you read this article, congratulations, now is the right time to start.
Second, who are the participants of the live broadcast
There is a complete chain of live streaming, and the roles in it are: platform, e-commerce company, live streaming agency, and resource integrator.
Platform: The platform party refers to the live broadcast platform. Live broadcast is not a new thing. There has been live broadcast in 16 years, but the first year of live broadcast with goods started in 19 years. This is easy to understand. The first way to monetize the live broadcast is to reward. Rewarding is like the recharge of a game. It has a life cycle, and it can also be understood as unsustainable. Once the freshness is over, you will no longer spend money on rewards. Then the live broadcast must find a new profit model, otherwise the live broadcast model will hang.
At this time, the emergence of live broadcast e-commerce can be said to have saved live broadcast, and even reshaped it. I speculate that the real live broadcast will start from the popularization of 5G in 20 years, just like the real short video only started from the rise of Douyin, the technology and the market are immature, all the pioneers are cannon fodder, just look at the next big one. The important task falls on Taobao or Kuaishou.
E-commerce companies: E-commerce companies are the core players of live broadcasts, beneficiaries and funders. Taobao is so big that it cannot do without the tens of thousands of sellers across the country. In addition, Taobao traffic prices have soared in recent years, and merchants have become increasingly unbearable, forcing them to look for cheap traffic outside.
In 19 double eleven, the one-hour turnover of Taobao live broadcast surpassed last year’s double eleven, one-day live broadcast sales. Point out a new direction for every business, let’s live broadcast. Live streaming has traffic, conversions, and profits. Whether it’s annual sales of over 100 million yuan, or the mom-and-pop shops that have just launched Taobao, they have started their own live broadcasts, or they are looking for online celebrities. There is only one purpose: to sell more goods.
Live broadcast agencies: Live broadcast agencies refer to institutions that have incubated live broadcast influencers like Li Jiaqi. We may only know Li Jiaqi, but we don’t know the thousands of large and small live broadcast agencies that sprung up like mushrooms in the second half of the year. Some are MCN transformations, and some are directly recruiting Internet celebrities to do live broadcasts. Each has its own gameplay, but they are all cultivated in the direction of bringing goods.
Recently, there have been many live broadcast training courses, which shows how many people want to enter the industry. I don’t understand, what should I do? Go to the class first, and you will be there after the class. It is another fresh leeks to be cut.
Resource integrator: One is a live broadcast network celebrity organization, and the other is an e-commerce seller. The two gears may not fit together. This gave birth to the resource integrator, the intermediary. There are a large number of Internet celebrity resources on the left, and some manufacturers who want to spend money on promotion on the right. Make a difference in the middle, so easy.
Third, how do e-commerce companies carry out live broadcast delivery
Next, let’s talk about the key points. When we study live streaming, we ultimately need to look at it from the perspective of the main player and seller of the game. There are less than ten platforms, and at most thousands of online celebrity organizations, but there are indeed tens of millions of sellers of e-commerce products. Every e-commerce seller needs to sell goods, and there is also a demand for live broadcast. So, how do e-commerce companies carry out live broadcasts?
Gameplay 1: Build your own live broadcast room and train your own anchors with goods
Advantages: low cost, strong controllability, is the mainstream gameplay of e-commerce. Half of the e-commerce companies participating in Double Eleven have set up their own live broadcast rooms. It is ordinary employees who broadcast live in the live broadcast room. There is a snack company that has 2 anchors appearing in each live broadcast, which rotates every 4 hours and broadcasts one live broadcast every day. Assume that a company has 4 staff full-time live broadcast, a monthly basic salary of 5,000 yuan, plus commission. It costs more than 20,000 yuan a month, which is much more cost-effective than advertising once.
Self-built live broadcast rooms, remember to weaken the personal character of the anchor and highlight the brand character. Let users come for the brand, not for the anchor. In this way, even if the anchor resigns, the change will not affect the fans. In a live broadcast of an e-commerce product, users kept asking, when will Miss XX go online to bring the goods? This is a very dangerous signal and should be eliminated immediately.
It may be a bit difficult for traditional companies to make a live broadcast room. After all, some companies have almost no online operation capabilities. But in a different way of thinking, it is enough to move sales from offline to online. The big guys with live broadcasts are not long and good-looking, they are not versatile talents, but people with strong sales ability. May I ask, which company does not have many sales champions? Ask them to bring the goods online and they will sell well.
Disadvantages: low flow and poor delivery effect. Live streaming is a new thing. Everyone has tried it, but few have done well. One is that they are not familiar with the rules of the platform and do not know how to get traffic and attract attention. The second is the lack of sales skills and can’t lead. The coexistence of risks and opportunities depends on the company’s operating level.
How to play 2: Find an Internet celebrity to bring the goods and pay for promotion
Advantages: quick results, sold out in minutes. This is played by e-commerce companies with advertising budgets. Paid promotion is a science. It is not difficult to spend money, but the difficulty is that the money spent can be collected and profitable. We saw live broadcasts, selling tens of thousands of lipsticks in a single session, and transactions for several million. These are all cases and are not indicative. Normally, a 1:1 input-output ratio is already very good. It is normal that the money invested cannot be returned. You know, the delivery of goods by the anchor is not something that any product can drive.
When we are looking for an anchor to bring the goods, we must find out clearly whether the anchor of our type of product has brought it and how effective it is. For example, live streaming of electronic products is basically a loss-making business. The best products for live streaming are skin care products and fast-moving consumer goods. In addition, the target users are not accurate, and even the big-name anchors can’t bring them.
There are two ways to cooperate with Daren: one is to charge only the pit fee, and the other is to add points to the pit fee. Now there is a cooperation model of purely charging points, but the points are not the same as we thought. I talked to an organization that uses commission settlement cooperation, and it has to return almost 50 points, which is completely unsuitable for ordinary products, except for those profitable products with super high profit margins. What kind of Internet celebrities to look for depends on their products to choose.
Disadvantages: The investment is high and the effect cannot be guaranteed. Since it is for promotion, it is certain to spend more money. Especially at the moment when the live streaming market is not very transparent, there are many cases of false high prices and data fraud. Do you still remember the case of a zero transaction of a million fans’ big V? Buying is never selling.
Fourth, the future of live streaming
In my personal opinion, the future of live streaming may be bright, maybe just a small hot spot. If the live-streaming delivery model is rigid demand, just like social networking, taxi rides, and meals, then the live-streaming delivery will become a standard feature for merchants, and it will survive for decades, and the future is bound to be bright. Perhaps it will go offline and broadcast it in real time in the store, playing the role of a physical store salesperson.
If the behavior of live streaming is the same as the initial rewards, it is only fresh. The user hasn’t watched the live broadcast for a long time to place an order, then the live streaming is just a short-lived hot spot. Let’s not be brought to the ditch by the temporary false prosperity, just like the shared bicycles before, how many people think this is the future. However, history has proven that this is just a game of drumming and passing flowers.
The biggest variable for live streaming is 5G. With the arrival of 5G, the clarity of the video will increase a lot. At that time, the experience of live streaming will be completely different. Watching Taobao live broadcast, the clarity of the picture quality of Taobao’s first sister live broadcast room is much higher than that of ordinary enterprise live broadcast rooms, which can be regarded as the Matthew effect. It is difficult to draw conclusions on how the future of live streaming will develop. But since it’s a flow depression right now, it’s better to start first.