The news: Twitch introduced livestream shopping ads powered by Amazon’s advertising platform.

• E.l.f. Cosmetics will be the first brand to test the native, in-stream format on its official Twitch channel.
• Users will be able to purchase e.l.f. products without interrupting their Twitch viewing experience.

Why it matters: The ad launch speaks to the burgeoning popularity of livestream commerce, which despite being slow to take off in the US is now finally gaining traction thanks to TikTok, a booming collectibles market, and the rise of “shoppertainment.”

• Brands and creators hosted over 8 million hours of livestream shopping sessions in the US in 2024, according to TikTok.
• Companies like Crocs and goPure have earned over $1 million from TikTok Lives, while QVC gained over 100,000 customers in Q2 after it began hosting livestreams on the platform.
• Both Walmart and eBay are leaning on livestreams to capitalize on explosive demand for collectibles.

Our take: Amazon is betting that an easier path to purchase will encourage more viewers to pull the trigger on products they discover via livestreams. That may well occur, especially when popular brands like e.l.f. are involved.

However, a successful live shopping strategy requires thinking about the channel less as an avenue for direct conversions and more as an opportunity to engage potential customers and build lasting relationships.

Live shopping events on their own influence the purchase decisions of just 1 in 5 US digital buyers, according to a DHL survey, but they can create a wealth of shoppable and informative content that brands can use to sway shoppers at other points in their journey.