‘Shoppertainment’ beats advertising when it comes to wooing online consumers, says TikTok

By Brontë H. Lacsamana, Reporter

FILIPINO consumers prefer authentic and entertaining marketing strategies over polished advertisements, giving rise to an approach that puts entertainment first and commerce second, a study showed. 

2022 study on the new opportunities in e-commerce conducted by TikTok and the Boston Consulting Group (BCG) found that exaggerated, picture-perfect advertisements usually fail to connect, with 90% of digital ads being skipped regularly by consumers.  

The “shoppertainment” strategy, which is fun, authentic, and focused on trends, can best be executed on TikTok, a social platform that hosts short-form user videos, the study added. 

Around 73% of the app’s users said they feel deeper connections to brands on TikTok than on other sites, with 87% of them saying video content influenced their recent purchases. 

“TikTok is changing how selling is happening. Our community has made shopping an interactive and entertaining place, so consumers now want an element of fun and entertainment whether they’re actively seeking out a product or casually browsing,” said Paolo David, head of brand partnership at TikTok Philippines, in an Oct. 6 media briefing. 

“Shoppertainment” in the Asia Pacific is projected to grow to a market value of $1 trillion by 2025 from a current value of $500 billion in 2022, with 55% being accounted for by fashion, beauty, food & beverage, and electronics.

The entertainment attributes that consumers now prefer are: storytelling (87%), not forcing decision-making (86%), a focus on trends and recommendations (85%), a video-first strategy (84%), and authenticity (81%). 

Only then should marketers consider the commerce attributes: clear information and the ability to purchase straightaway. 

Mr. David said that following the entertainment-first, commerce-second approach that the study outlines will help marketers benefit from TikTok’s influence on modern retail. 

“Our mission is to empower businesses of all sizes, to reach more customers on TikTok, and to help brands build presence and sell directly on the app,” he added. 

Aside from putting up the TikTok Shop portal and starting trends like #TikTokMadeMeBuyIt or more specifically #Budolfinds in the Philippines, the platform is also looking into educating and training businesses and brands on “shoppertainment.”

TikTok pointed out that, with consumers being bombarded with more choices online, 71% end up making purchases on a different day, with 85% switching apps while going through the consumer journey. This makes an ad’s impact key to their decisions. 

“Commerce has shifted from a functional transaction to a social interaction to an emotional connection,” said Mr. David. “There’s a growing appeal for things that hit you on an emotional level.” 

The study titled Future of Commerce surveyed over 2,000 respondents across APAC.

 

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