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Brands brace for election chaos & TikTok's livestream push
Brands adjust ads as TikTok pushes livestream shopping, but big brands hesitate.
It’s Monday!
Shopify’s stepping on Salesforce’s turf, winning over big brands like Toys R Us with cheaper, streamlined e-commerce tools. It’s a classic showdown: Shopify’s simplicity versus Salesforce’s all-in-one approach.
A MESSAGE FROM TRACKSUIT
Greed, Lust, Sloth, Pride, Envy, Gluttony and Wrath.
In a new report, Tracksuit explores the Seven Deadly Sins of emotionless advertising and presents compelling evidence, using our data alongside additional insights from Google, that emotional storytelling outperforms rational approaches across all platforms, from traditional media to digital channels like YouTube.
Brands brace for post-election chaos in ad strategy
As the U.S. presidential election looms, brands are bracing for a week of potential ad disruption, with some dialing down spending and others ready to pivot at a moment’s notice.
Taking a pause: Many brands are hitting pause on Election Day and beyond, with agencies like Eden Collective advising clients to avoid news programming entirely. "Consumers aren't focused on holiday buys right now," said Eden’s Suzanne Silber.
Shifting focus: For those keeping ads up, it's all about finding quieter channels. Think holiday content on Hallmark and Lifetime, or ramping up Facebook and Instagram ads to sidestep the political noise clogging traditional platforms.
Seizing the moment for key issues: A few brands are making this moment count. Cadence OTC, an emergency contraception startup, is doubling down on social media to reassure people about their rights post-election, while Kindbody, a fertility clinic, has prepped patient messaging to respond to various outcomes.
Bottom line: For many, the game plan is flexibility. Whether pausing, pivoting, or seizing the moment, brands are gearing up to ride out the election week with agility.
Livestreams take over TikTok Shop—why big brands are still wary
What’s going on?
TikTok wants brands to treat its livestreams like a 24/7 shopping channel, pushing small brands like BK Beauty to test long, TV-style broadcasts with production teams, lighting setups, and real-time interaction with their audience. TikTok’s goal? To turn every livestream into an e-commerce event and replicate the massive success of its Chinese counterpart, Douyin.
The appeal for small brands
Big wins, bigger risks
BK Beauty, a small beauty brand, jumped on TikTok Shop’s livestreaming push, clocking in an impressive 10-hour live session that blew past their sales goal. With TikTok footing the bill for professional production, brands like BK Beauty are now treating livestreams as a key sales strategy.
Brands are advised to go all-out, often spending thousands on high-quality cameras and production, in order to grab more visibility in TikTok’s algorithm.
More than just sales pitches
To keep audiences engaged, TikTok recommends that brands adopt “preheating,” where brands tease the live event weeks in advance, using mini-previews to promise exclusive discounts, giveaways, and fun hosts to keep things lively.
Why big brands are holding back
Too risky, too real
Going live with 150 million potential viewers sounds exciting—until someone goes off-script. Agency execs say it’s hard to control brand image when there’s no safety net, and one misstep could be hard to walk back.
With strict approval processes, many big brands are uneasy about the freewheeling nature of live shopping, making them cautious about diving in.
The discount dilemma
To keep audiences watching for hours, TikTok suggests flash deals and special discounts during streams. But for big brands, constant discounts risk straining relationships with retailers like Sephora, where they can’t afford to undercut themselves.
High costs, low guarantees
Producing a livestream isn’t cheap. Many brands are spending up to $10,000 for a studio setup, only to face low engagement if they don’t manage to hook viewers. One marketing exec summed it up: “There’s nothing more demoralizing than setting up a studio set and having only four people tune in.”
Bottom line: TikTok’s bet on livestream shopping has potential, but for now, it’s small brands that are turning it into a win. Big names are still skeptical, waiting to see if the trend sticks. TikTok might be trying to change how we shop online, but whether it can get big brands to buy in remains to be seen.
NOTES 📝
Today’s top marketer & brand reads.
Study: Nielsen rivals are gaining acceptance among advertisers (AdAge)
Read: Amazon's newest branded entertainment show wants to tie its boxes to 'spreading joy' (Business Insider)