Connect with us

SOCIAL

Livestream shopping booms as small businesses hit social media

Published

on

Livestream shopping booms as small businesses hit social media

Last year, Anthony Velez, CEO of Bagriculture, a small business selling pre-owned designer handbags, made up to $100,000 a month across his seven brick-and-mortar stores in New York City.

This year, business is much different: Velez has closed all of his physical locations, but he’s generating up to $100,000 a day.

The secret to his success, he told CNBC, has been diving into the world of livestream shopping.

“All the metrics exceed any other form of shopping I’ve seen – period,” Velez said. “We can go live on three to four platforms simultaneously.”

The trend involves a seller broadcasting live video of themselves showing and explaining products while viewers ask questions and make purchases in real time. Livestream shopping started on social media in China, and according to Coresight Research, has grown into a $512 billion market.

That market size might explain why some major platforms are rushing to grab a piece of the action here in the U.S.

“Poshmark, eBay, TikTok. [I’ve gotten] nonstop phone calls,” Velez said. “TikTok flew in from China to meet with us.”

Anthony Velez, CEO of Bagriculture, a small business selling pre-owned designer handbags, live streams a shopping event.

Andrea Day | NBC

In its most recent quarterly report, Coresight Research, which tracks the livestreaming e-commerce industry globally, projected that U.S. livestream sales would reach $32 billion by the end of 2023. However, CEO Deborah Weinswig told CNBC the firm has since revised that projection.

The original estimate was set early this year, she said, and didn’t fully take into account South Korean internet giant Naver’s acquisition of Poshmark. At the time, TikTok Shops, a way for users to buy products within the app without having to go to a separate e-commerce store, was also still getting its footing.

Now, “we believe that livestreaming sales in the U.S. could easily reach $50 billion this year,” Weinswig said. The firm also estimates livestream shopping will account for more than 5% of total e-commerce sales in the U.S. by 2026.

TikTok, Poshmark and eBay all told CNBC they’re currently testing livestream shopping.

“We’re really bullish for the growth of this new way to shop,” said eBay’s chief product officer, Eddie Garcia. “The sky’s the limit … and we’re gonna keep learning. We’re going to keep investing.”

Garcia, who oversees eBay Live, the company’s livestreaming platform, said it is currently focused on fashion and collectibles, with plans to expand from there.

“We have 134 million buyers all around the globe who are chomping at the bit and really thrilled to engage with sellers in this new way,” Garcia said.

Meanwhile Velez said he’s still fine-tuning his deals with the platforms, which involves handing over some of his earnings. Right now, he pays between 13% and 20% of each sale to cover things like payment processing and promotions.

“We give a percentage our sale in exchange for visibility, ease of use,” he said.

Influencer Danielle Santana hosts live shopping shows on Amazon, selling products from other businesses — everything from cheese graters to make-up sponges. She said she gets a cut of every transaction.

Santana, who can sell 500 to 3,000 items in one show, told CNBC she made six figures just on Amazon Live last year.

“[My commission] ranges from 2% to upwards of 20% – and that all depends on the category and the items that you are selling,” she said.

Santana is one of hundreds broadcasting on the platform every day. A spokesperson for Amazon said in an email that “thousands of creators” livestreamed throughout the e-commerce site’s Prime Day event in July of last year.

And while some major platforms are jumping into livestreaming, one social media giant is pulling out.

A spokesperson for Facebook and Instagram parent Meta told CNBC by email the company made the “hard decision” to end support for its Live Shopping feature in March.

Previously, according to Instagram, businesses and creators were able to tag products when they went live on the platform, allowing viewers to buy or save products added to the shopping video.

“Businesses will still be able to use live broadcasting but the ability to tag products will be going away. This allows us to focus on experiences that provide more value for people and businesses like Reels and Ads that help with product discovery,” the company spokesperson said.

According to Coresight’s Weinswig, Meta is “missing out.”

“It could ultimately impact the number of eyeballs, which will impact the advertising dollars. They will also not benefit from the sales being concentrated on their platform,” Weinswig said. “Even the bigger miss for [Meta] will be the community, which will look elsewhere to shop and converse and learn from each other.”

Weinswig estimates that companies working to establish themselves with livestreaming could see upward of 25% top-line growth.

So, who is poised to emerge victorious in the livestreaming battle?

According to Weinswig, it’s TikTok, which has a significant opportunity in the U.S. market given its 150 million monthly active users and popularity with younger consumers.

The platform’s technological advantage over its competitors enables it to target users with products they may be interested in purchasing.

Weinswig also noted that TikTok has streamlined the shopping process for users, keeping livestreams and purchases all in-feed — without leaving the app.



Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address

SOCIAL

3 Things You’ll Regret Not Knowing Before Buying Meta Platforms Stock Right Now

Published

on

3 Things You'll Regret Not Knowing Before Buying Meta Platforms Stock Right Now

It’s been a wonderful time to be a shareholder in Meta Platforms (META -0.43%). After hitting a low around the start of November 2022, the business has seen its shares skyrocket nearly fivefold (as of Feb. 20). Investor enthusiasm is through the roof.

Despite this monster performance, the FAANG stock, which is near its all-time highs, trades at a forward price-to-earnings ratio of just 23.5 right now. This might prompt you to rush to buy shares.

But before you do, here are three things you must know about this dominant tech giant.

Massive, but growing

Meta Platforms owns and operates some of the most popular social media services on the face of the planet.

Between its various platforms — like Facebook, Instagram, WhatsApp, Messenger, and Threads — the business counted a whopping 4 billion monthly active users (MAUs) as of the end of last year. This means that almost half of the world’s 8.1 billion people interact with a Meta digital property once a month. That’s hard to wrap your head around.

While it’s reasonable to assume the company can’t get any larger, it’s worth pointing out that MAUs were up 6% year over year in the fourth quarter. Because the U.S., Canada, and European markets are much more mature, Meta is finding success posting better growth in other geographies, like the Asia-Pacific region.

This massive scale has resulted in powerful network effects. The more users on a particular social media platform, the more valuable it is to users. Anyone can start a new app tomorrow, but it would be almost impossible to expand the way Meta’s services have, which protects its competitive standing.

Digital advertising is key

Providing free services to billions of users means that Meta, unsurprisingly, is a digital advertising powerhouse. Of the $135 billion in revenue it brought in in 2023, 98% came from selling ads. This puts it behind Alphabet in the global rankings when it comes to digital ad revenue.

Because of the valuable data Meta is able to extract from its gigantic user base, it’s no wonder that businesses of all sizes find it extremely effective to target audiences using the company’s platforms. The ongoing integration of artificial intelligence (AI) features will only improve this for marketers.

The downside is that the digital advertising market has shown itself to be somewhat cyclical. When interest rates rise, inflationary pressures persist, consumer spending gets pressured, and everyone is uncertain where the economy is headed, it makes sense that ad spending will be among the first thing that executives cut. Meta reported a 1% decline in revenue in 2022 thanks to these headwinds. However, things picked up in a huge way last year: Sales jumped 16%.

It also helps that digital ad revenue drove a fantastic 54% operating margin for the family of apps segment in Q4. Add this to Meta’s net cash position of $47 billion, and there should be zero concern about the business being able to navigate any unfavorable macro conditions.

Meta’s metaverse ambitions

Love him or hate him, credit goes to Meta’s founder and CEO, Mark Zuckerberg, for building one of the world’s most valuable and dominant enterprises in just two decades. By being a forward-thinking innovator, he’s always trying to position the business for whatever tech shifts that might come.

Zuckerberg thinks that next shift could be the metaverse. As a result, he’s focused heavily on creating new hardware and software products in the hopes of attracting 1 billion users to spend and interact in virtual worlds.

He’s putting his money where his mouth is. Meta’s Reality Labs division posted an operating loss of $16 billion in 2023, and more losses are expected. And it doesn’t make much money, producing $4 billion in revenue combined in the last two years.

But given a proven track record of success, as well as vast financial resources from the company’s thriving social media apps, investors should doubt Zuckerberg at their own risk.

If you’re looking to scoop up shares of Meta, you now know three very important aspects of the business that can lead to a more informed decision.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Meta Platforms. The Motley Fool has a disclosure policy.

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

SOCIAL

X Expands Audio and Video Calls to Non-Paying Users

Published

on

New Report Finds That X May Be Inflating its Ad Performance Results

Look, I don’t know why this would be considered revolutionary or an advance, or even a significant step in any direction really. But for some reason, Elon Musk and his team believe that facilitating audio and video calls in X is a really big deal.

And now, it’s expanding its audio and video calling features to all non-Premium subscribers in the app, so you don’t even have to be a paying user to access the new connection options.

X launched audio and video calls with X Premium subscribers on iOS last October, then brought them to paying users on Android last month. And now, it’s expanding access once again.

But, like, you can already make audio and video calls on your phone, on WhatsApp, in Messenger, etc. Like, nobody is hanging out waiting to be able to make calls on X.

But Elon says that he’s getting rid of his phone number, because X will now replace his telecommunications, and given the reflexive head-nodding among his most dedicated disciples in response to his every utterance, no doubt many of them will also follow suit.

But I’m guessing not many other people will actually care.

But, if you do, soon, you’ll be able to kick off an audio or video call with your X connections, and there could be some value within that for brands that are looking to use the platform for customer service.

I suspect most X users won’t even notice, but for those who are conducting a lot of connection activity in the app, it is worth considering as a strategic expansion.



Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

SOCIAL

Reddit files to go public as ‘RDDT’ on NYSE

Published

on

Online discussion platform Reddit is looking to ramp up revenue from ads, commerce, and allowing access to its data for training of large language models powering artificial intelligence

Online discussion platform Reddit is looking to ramp up revenue from ads, commerce, and allowing access to its data for training of large language models powering artificial intelligence – Copyright AFP/File SAMUEL ALABI

Glenn CHAPMAN

Reddit on Thursday told US stock regulators that it plans to go public on the New York Stock Exchange under the symbol “RDDT.”

Reddit did not provide details regarding the number or price of shares nor when the initial public offering would occur.

Co-founder and chief executive Steve Huffman said in a letter included with the filing that money raised by the share offering would be used to make Reddit a stronger, bigger company.

Founded in 2005, the platform is home to more than 100,000 online communities devoted to a sweeping range of topics and was visited by an average of 76 million people daily in December, according to a filing with the Securities and Exchange Commission.

“They come to Reddit to participate in a vibrant community, a constantly evolving place where anyone, anywhere, can connect with like-minded people and dive into any topic,” Huffman said in the letter.

“The conversation ranges from the sublime to the ridiculous, the trivial to the existential, the comic to the serious.”

Communities on the platform are referred to as “subreddits,” and one devoted to music star Taylor Swift eclipsed a million members last year, according to the filing.

Reddit had a net loss of $90.8 million in 2023 on revenue of $804 million, according to the filing.

Reddit is known for “Ask Me Anything” sessions during which influential people ranging from tech titans and famous athletes to celebrities and politicians field questions from users.

A Wall Street Bets subreddit fueled a GameStop share runup in 2021 in a frenzy that inspired a US congressional inquiry and a film titled “Dumb Money.”

Huffman credited Reddit communities with “campaigning for net neutrality in 2015, starting the March for Science in 2017, or standing up for retail investors, as r/wallstreetbets did in 2021.”

– AI training –

Plans to bring in money include advertising and licensing data for training large language models (LLMs) that power artificial intelligence, according to the filing.

“Reddit’s vast and unmatched archive of real, timely, and relevant human conversation on literally any topic is an invaluable dataset for a variety of purposes, including search, AI training, and research,” Huffman wrote.

“We expect our data advantage and intellectual property to continue to be a key element in the training of future LLMs.”

Last year moderators of communities at Reddit held a major protest over new fees for developer access to the platform.

Huffman had been unwilling to allow companies that build AI chatbots like ChatGPT to have free access to the site to perfect their large-language models.

AI companies had used a free interface to access the massive amounts of data at Reddit to train artificial intelligence models.

“Reddit needs to be a self-sustaining business, and to do that, we can no longer subsidize commercial entities that require large-scale data use,” Huffman wrote in a Reddit post at the time.

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

Trending

Follow by Email
RSS