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China-Origin ★ Live Streaming's Rapid Growth: Focus on Oreo's E-Commerce Campaign
Live video streaming is rapidly gaining traction in China. According to research firm HuaChuang Securities, the market size, which was $1.8 billion in 2015, is projected to reach $15.9 billion by 2020. Ad Age reports.
R.K. Mani of Kala, a media communications agency under Dentsu Inc. Aegis Network, analyzes that live streaming is at the intersection of several trends: "Young Chinese are inherently avid video viewers. What resonates in China is that it's live, interactive, and above all, authentic."
Platforms like Huajiao and Bilibili are also thriving. The "hosts" who publish videos are primarily ordinary people sharing their stories, daily lives, or performing songs and dances. During streams, comments and emojis posted by viewers scroll across the screen, and hosts respond to them in real time. A uniquely Chinese custom is taking root: viewers send virtual gifts to hosts they like online, which are converted into cash and paid to the hosts. Platform operators earn a margin from this system. Beyond the tangible monetary benefit, live streaming's expansion is also seen as driven by its role as a vital means for connecting with family in China, where many migrant workers come from rural areas.
While still in its infancy as an advertising platform, global companies are increasingly launching promotions incorporating live streaming. Content ranges from straightforward approaches like product demonstrations and store tours to more unconventional, artistic concepts. Among these, Mondelez Oreo's August campaign garnered significant attention.
Promoting a new chocolate-flavored product, popular singers Da Zhangwei and Xue Zhiqian appeared in an online live event. They sang love songs incorporating the flavor into the lyrics and elicited laughter by eating "tofu and wasabi-flavored" Oreos while incorporating viewer voting. Targeting China's world-leading e-commerce market, the event streamed simultaneously across four platforms including Alibaba's Tmall, drawing 4.5 million unique live viewers. Within three weeks of release, 26 million people watched Oreo videos on Tmall. Products could be purchased directly via buttons on the site.
Other notable examples include Adidas live-streaming "graffiti art" to promote a new product, changing designs and patterns based on viewer requests, and U.S. department store Macy's broadcasting a virtual tour of its 34th Street Manhattan location, which generated significant buzz.
Source: Ad Age
How Advertisers Are Tapping Into China's Crazy Live-Streaming Culture
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