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Video Commerce Leader Firework Releases Key Predictions for 2023
Saturday, December 17, 2022
Will livestream shopping pick up steam in the US? Will social media remain paramount for brands? And who will be the next class of digital creators? Firework shares what lies ahead for ecommerce.
NEW YORK, Dec. 9, 2022 /PRNewswire/ -- Video commerce leader Firework today released its top predictions for 2023 to help brands, retailers, and publishers navigate the rapidly changing world of digital engagement and ecommerce.
Coming off a year of exceptional momentum and growth including a $150 million Series B financing round, a number of innovative product solution launches, and new partnerships with leading retailers such as Walmart Connect and The Fresh Market, the Firework team has drawn upon its deep knowledge of the industry to deliver pivotal insights for the year ahead.
Firework's predictions for 2023 include:
1. Store associates will be the new Creator class. Many brands may not
realize it, but they already have their biggest and best influencers
in-house. By putting power into the hands of on-the-ground store
associates to livestream and create content, retailers will not only
foster a new sense of authenticity, they'll also be able to further blur
the line between IRL in-store events and digital ones. Store associates
are the ones who often know the product best, and by bringing real-life
experiences and connections to online and livestream shopping, retailers
will be able to easily enhance shopping experiences. Meanwhile, retail
associates can share their brands and passions with viewers, build
community, and bring a sense of urgency to outreach through in-the-moment
offers.- Jerry Luk, Co-Founder and President
2. Power will return to brands, allowing them to reshape their relationship
with their customers. The deprecation of the third-party cookie might
seem daunting but we believe it will shift the balance of power back into
the hands of brands. In 2023, we'll see that successful brands will be
those that establish deeper relationships with their customers in their
own channels - doubling down on user experience, customer engagement and
community building. A bonus being first-party data collection and a much
more efficient customer acquisition cost. In 2023 brands will create
community-based experiences on their own digital channels, like exclusive
livestream drops and members-only shopping events. The death of the
third-party cookie has cut off one of marketers' most important sources
of customer data and insights. However, with new possibilities emerging
for the creation of dynamic experiences anywhere on the open web,
collecting first-party data -- and enhancing customer loyalty -- have
become easier propositions than they were even just a few years ago.-
Drew Cashmore, Head of Global Marketing
3. More Americans will make their first livestream shopping purchase. While
still dwarfed by the mammoth $497 billion Chinese livestream shopping
market, the US' livestream shopping trajectory is notching ever upwards.
Coresight Research expects the livestream shopping market to triple in
the next few years, jumping from $20 billion now to $57 billion by 2025.
Additionally, just as we saw online shopping expand dramatically at the
outset of the pandemic, we expect to see the shopper demographic for
livestream shopping begin to widen as well, propelled by Gen Z and
Millennial shoppers. This shift is driven by a growing realization that
by simply having video on site - be it live or short - brands get an
incredible uplift in engagement, conversion and repeat visits.- Jeff
Lucas, Chief Revenue Officer
4. Social networks no longer represent safe havens, and brands will cut
spending. Brands are beginning to seriously question their association
with large social sites for multiple reasons and we're already seeing
major advertisers reduce their spends. What's abundantly clear is that
the cost of building your audience outside of your owned environments is
becoming too much for most companies. Facing uncertain economic futures,
brands are evaluating their spend on nearly all fronts, and will be more
inclined to invest and innovate on their owned channels--where they
control the message and the data.- Vincent Yang, Co-Founder and CEO
5. Retailers, brands, and publishers will drive the most significant network
effect in engaging shoppers. Connected networks are the future of shopper
entertainment, engagement, and conversion. As businesses seek to regain
control of their communication with customers, they'll effectively take
back ownership of customer connectivity from walled garden social apps
and historically bifurcated ecosystems will unite together. There is
inherent risk in driving content for consumers and shoppers into a portal
you don't own: unpredictable algorithm shifts, taxes on conversion,
potential government or legislative intervention, and ownership of 1P
data. This is where a single video commerce solution comes into play.
With the ability to create immersive experiences for shoppers via any
outlet, we will see omni-channel, cross-platform integration at a scale
yet to be seen.- Jason Holland, Chief Business Officer
6. Across the board, programmatic and automated transactions will tap video
commerce in support of retail media networks. The pivot to retail media
networks (RMNs) is already well underway and will continue to rapidly
accelerate in 2023. In 2022, nearly three-quarters of brands had a budget
dedicated to RMNs, according to AdWeek, and spending in the space is
expected to exceed $52 billion this year. Entrants will continue to
expand, with more and more agencies joining the ranks of strategic RMN
buys supported by onsite or in-app video where conversion can be
measured. Likewise, RMN offerings will continue to evolve offsite and
will not be limited to the retailer's digital domain, with more dynamic
ad types such as vertical and shoppable video as well as search
capabilities taking a firm hold. This is all possible because RMNs append
their rich data sets to media buys across premium publishers on the open
web, social media, and email.- Billy Cladek, Senior Vice President,
Global Retail and Publishing
7. Innovation budgets will die and performance will be prioritized. Amid
slashed budgets, a rise in customer acquisition costs, and a potentially
rocky few quarters, marketers will be laser-focused on getting the most
out of their spend. The marketers that emerge best-suited for ongoing
success will look closely at ROI, as well as trends that appeal
specifically to Gen Z and Millennial consumers. Brands will look to
optimize on their own channels, recognizing the diminishing returns and
volatility of social media, and will increasingly turn to short-form
video as a reliably high-performing medium.- Suzanne Strasser Grant,
Senior Vice President, Global Head of Agency and Strategic Partnerships
8. Livestream shopping will spur a new wave of co-creation between brands
and their customers. Creativity is no longer exclusively a brand-led
pursuit or a one-way street. As social sites like TikTok have broken down
the barriers between influencers/celebrities and their fans, it's spurred
new, collaborative forms of creativity. Users take an idea created by
another user, put their own spin on it, and put it back into the social
ecosystem where it can continue to be riffed on. We expect brands to tap
into the goldmine of creativity that can flow from their own customers
through interactions and ideas shared in livestream shopping experiences,
where brands invite their customers to weigh in on favorite products and
even suggest future iterations and exclusive drops.- Nikki Leonard, Vice
President, Head of US Enterprise
Firework enters 2023 poised to bolster its position as the world's leading video commerce solution through continued innovation and growth. For more information on Firework, visit https://firework.com/.
Firework is the world's leading video commerce solution built for brands. Leveraging shoppable and livestream video and powerful monetization capabilities, Firework empowers the world's most dynamic and exciting retailers, consumer brands, and publishers to build engaging video experiences on their owned and operated digital properties and across channels at a global scale. Firework enables organizations to bring new levels of authenticity and connection to online video experiences, speaking to digital natives in the language they understand fully--and taking control of their own customer data. The company has raised over $235 million in capital to date. To learn more, please visit firework.com.
Media Contact:
Caroline Statile
Scratch Marketing + Media for Firework
caroline@scratchmm.com
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SOURCE Firework
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