Quadrant Global 360° | Whats new in Live-Streaming & Influencer Advertisement? | by Quadrant Lab | Oct, 2023

| Moritz Strittmatter
Quadrant Global Strategy Consultant

Next to video on demand and classic picture based content, live streaming has taken off as popular content, seeing its largest rise during global lockdown during Covid19. This newer form of entertainment offers companies new avenues for direct advertisement, especially from consumer electronics, digital services and apps and digital entertainment.

Streaming has its origin and still largest popularity in the streaming of video game content to largely male audiences. As such the largest live streaming website in the west www.twitch.tv features a category system by which viewers can filter for video game content of their preferred game. Further popular categories are the catch all ‚just chatting‘ for variety content and even several categories for adult content.

A newly emerging trend in the streaming sphere are so called V-Tubers, referring to streamers that use motion-capture technology to animate avatars (usually in the style of Japanese anime) instead of apperaring directly on camera. V-Tubers usually attempt to keep their real life identity private, both for the sake of privacy and to keep up the viewers illusion and thus engagement of the characters portrayed.

The revenue model of streaming is dependent on a mixture of direct collection, advertisement revenue, as well as sponsorships and monetization platforms such as patreon. The monetization platforms collect voluntary donations for the creators on a usually recurring basis. As for advertisement content on the platform the revenue is shared between platform and creator. Sponsorships of products directly to the creator have no revenue sharing with any of the platforms. Direct collection methods include so called „super-chats“ that highlight a typed message for a respective monetary value, to be then enganged with by the repective streamer. Further gamified methods to engange with the streamer through spending money also play a large part in monetization.

For companies trying to advertise with streamers, the sponsorships seem like the best option from both sides, as the company has direct influence to direct the streamer in the presentation of the product, it allows for the personality or content of the streamer to be made relevant to the product or service and also the highest reward for the streamer due to the reduction of middle-men involved. As the relationship between streamers and their audience is often described as ‚para-social‘ some care should be taken to select streamers with a high level of trust with their auience and ideally a believable reason to be using the advertised product. As such the largest success of streamer sponsorship advetiesement is for products or services that are fast to understand and relatively low commitment in terms of price or implementation.

Further incentives that could be used in such a form of advertisement are sponsored links that give direct monetary incentive for successful ads.

Moritz Strittmatter
Quadrant Global Strategy Consultant

Quadrant Lab is a forward-thinking media think tank devoted to offering insights into the international expansion of tech/manufacturing enterprises. We are dedicated to assisting businesses in shaping global brand strategies, expanding their brand influence, and jointly exploring the global path of smart manufacturing.

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