Video commerce company Firewalk will begin testing an artificial intelligence product for its video commerce platform starting in June.
As more businesses explore live shopping features, Firework’s Generative AI live marketing solution aims to increase consumer engagement and drive conversions – even after the live broadcast is over. For example, if a consumer asks for a recipe from the video, the AI will provide the items and products provided.
Fireworks co-founder and president Jerry Luke said internal tests have provided limited data so far, but the expectation is that consumers will appreciate the presence of an AI-powered conversational feature anytime soon. The hope is that instant, personalized responses will increase customer retention and loyalty, as well as sales conversions.
Even after the live broadcast was over, they “always appreciated the nature of the tool in particular because it allowed them to receive accurate, real-time and contextual responses,” Luke said. “By turning live streaming events and on-demand video into interactive, always-on shopping experiences on brand websites, we’re helping brands connect with customers more often when they have a purchase intent.”
While many agencies and platforms are experimenting with direct marketing, some say it offers an opportunity to increase engagement in this growing field of social and video commerce. Some have been experimenting with AI and ChatGPT tools for internal projects, client work and creative content generation. As Amy Owen, UM Worldwide’s head of U.S. business, previously noted, it’s possible to “finally bring together” retail media and media in one place.
Since buyer interaction ends after a live broadcast, Luke believes this feature creates new potential to convert consumers after they leave. Based on previous data, Luke estimates that using the tool can increase engagement 10 to 50 times compared to standard live broadcasts. The AI engine uses a large language model that is responsive in multiple languages and can be customized to match the brand voice. Several agency experts Digiday spoke to would not comment further on the launch.
But other direct marketing platforms are trying a similar strategy to increase engagement. For Adi Ronen Almagor, CEO of direct marketing platform and marketplace Buywith, there can be up to 70% engagement on the platform – which uses features like polls, stickers, chat and session check.
“While post-event engagement is somewhat challenging — just as engaging with physical consumers after they’ve left the store is challenging — we’ve developed tools and strategies to help brands do just that,” Almagor said.
When going live, Buywith sends SMS text and email notifications to users of featured items and coupon codes when available. “In this way, we keep users engaged from now on. Also, we encourage our creators to post session summaries and recommendations on their social media accounts. We often see conversions from 10% to 40%, with many purchases occurring after live episodes,” Almagor added.
Fireworks will launch AI Chat with existing partner The Fresh Market, a grocery company that is testing the capabilities of AI live marketing on its website and live video business on the retailer’s media network. In February, the two companies launched a partnership to leverage a marketable live commercial retail media network that allows brands to run sponsored video ads on live content. Most retail media networks rely heavily on static and display advertising.
According to Kevin Miller of FreshMarkets, customer lifetime value depends on seamless interactions across any channel. Additionally, any proactive or reactive customer service needs to be “100% on time” through feedback or customer initiation, Miller said, and Fireworks’ custom AI tool helps improve that experience.
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