2021 Douyin live broadcast new trend: Enterprise self-broadcasting anti-scam guide

Douyin’s e-commerce trend has made Luo Yonghao, Brother Yi, and Boss Yue famous. There were also many alternative topics in the media, including complaints and gossip about the various failures of product promotion by influencers and celebrities. Recently there is another article with over 100,000 views——

►100,000+ hot comments

Judging from the comments section, in the eyes of many people, Douyin live streaming = influencers selling products.

► Tik Tok live streaming? Isn’t it just an expert promoting the product?

Will Douyin live streaming be the same as Taobao live streaming, where the eldest (Viya and Li Jiaqi) eats meat, the second one drinks soup, and the third one will starve to death in the future? Let’s first take a look at the market data, the situation of Douyin live broadcast room with goods in November 2020——

►Data source: Based on the sales data of Chan Mama’s Douyin live broadcast

Judging from the data, it doesn't seem to be. On April 1, 2020, Luo Yonghao sounded the clarion call for live streaming sales on Douyin, catalyzing the mature development of the live streaming sales industry on Douyin. It is precisely because of these leading players that the Douyin live streaming e-commerce has expanded the industry pie, allowing a large number of mid-level participants to share the pie, making Douyin live streaming e-commerce the hottest new trend in 2020.

And what will be the trend of Douyin live streaming next year - in 2021? It is the enterprise (brand)’s own broadcast!

But what exactly is enterprise (brand) self-broadcasting?

Why are business forums talking about Tik Tok self-broadcasting recently?

As a brand supplier, how can we correctly enter the 2021 track?

With the speed of Tik Tok’s evolution and its traffic baton effect, if you don’t understand and don’t learn, you will miss the opportunity next year.

Fortunately, we have this anti-scam guide summarized after one year of doing Douyin corporate live streaming.

01. Why is Douyin’s self-broadcasting by enterprises the trend in 2021?

Live Broadcast Business Opportunities

"We are a professional store broadcasting agency, and the brands we cooperate with have reached..." If you are a very diligent practitioner, you will find that since the second half of 2020, at least 50 agencies have made opening remarks in this way. Suddenly, all kinds of agencies have sprung up like mushrooms after rain. At least 30 of them will tell you that they are Luo Yonghao's agency, and 40 agencies will tell you that they have signed all the brands in a certain segment of Tmall...

So, what exactly is enterprise self-broadcasting? Why are people who work in short video content, internet celebrity economy, celebrity management companies and even advertising agencies all talking about self-broadcasting by companies? After hearing a lot of brand friends complain about being exploited by MCNs and deciding to do self-broadcasting on Douyin, I wrote down my understanding of this new trend.

What is Enterprise Broadcasting? Enterprise self-broadcasting is a new term. It is a new sales model that emerged after the domestic live broadcast sales ecosystem matured. It is a form based on the fact that enterprises only sell their own products. Enterprise sales and PGC content are combined. With the strong support of the company, the continuous and long-term output of manpower in the live broadcast room is guaranteed, thereby ultimately realizing the transformation from "offline physical store" to "online live broadcast room".

What is the current situation of corporate self-broadcasting? The overall market situation is as follows:

In November 2020, there were 3,264 live streaming rooms with sales exceeding 1 million, and 1,799 companies were certified, accounting for 55%.

►The number of Douyin live streaming rooms with more than 1 million sales in November 2020

These live broadcast rooms with more than 1 million users had a cumulative sales of 16.4 billion yuan in November, of which 7.17 billion were corporate accounts, accounting for 43%.

►Douyin live streaming sales exceeded 1 million

The proportion of corporate self-broadcasting accounts is growing steadily, and there is no doubt that it will exceed 60% in the future.

► The proportion of corporate live broadcasts in the million live broadcast rooms

02. Why are corporate broadcasts more popular than KOLs?

Business Live Broadcast Strength

The anchors rely on their unique tone to attract fans. Most anchors are only good at content output, or even just the show-like type with good looks. Many anchors become popular for unknown reasons, so they often have many shortcomings.

1. They know little about complex product knowledge and are unwilling to spend time to understand the product

Second, they only cater to fans and pursue low prices, but do not know how to strike a balance between making money from selling goods and controlling prices.

3. The proportion of impulse purchases by fans is high, resulting in a high return rate and high operating costs for enterprises

4. In order to cater to fans, the anchor makes too many promises about the product and raises expectations, which creates a huge contrast after the fans receive the product. It is easy to receive bad reviews, resulting in a large amount of DSR maintenance costs for merchants

5. Not communicating with business partners

6. The interests of anchors and merchants are different, and the communication methods are completely different

7. Every anchor is a new connection for the company. In many cases, the sales volume is less than the cost.

8. Fans belong to the anchor, not the brand.

9. The central control ability of the Douyin platform over Douyin traffic has caused the high instability of anchor traffic

If there is a slot fee, the company needs to burn incense and pray every time they broadcast live to earn back the slot fee.

Every live broadcast is a new bet, and companies are always nervous. In the corporate self-broadcasting model, the anchor understands the product, there is no bargaining price, the after-sales rate is low, the profit margin is high, and the fans also belong to the company's Douyin account. The contrast in risk efficiency is like the difference between a Ferrari and a bicycle. Apart from manual labor, the almost risk-free and more controllable corporate Douyin self-broadcasting model eventually became the model favored by companies and became a hot commodity at the end of 2020.

Three important observations:

1. Livestreaming e-commerce with influencers is an interactive upgraded version of traditional TV shopping.

2. The benchmark for the company’s own broadcast is the traditional offline store. An online store can accommodate more people.

3. With strong official support, influencers will direct traffic to merchants’ Douyin stores after distribution.

►You can bind your TikTok and live streaming accounts in the background

► The front end also provides guidance for users to follow the account after placing an order.

►After users comment on an order, they will be guided to add fans

It can be seen that Douyin officially supports self-broadcasting. When the bonus comes, are you there? Do you understand how excellent corporate self-broadcasting works?

On Douyin, most companies with more than 5 million self-broadcasts per month operate like this:

1. Just like a talent scout looking for a star, look for influencers (KOLs) all over the world to distribute and promote the product;

2. Enter the Douyin platform to promote products, including but not limited to: KOC short video promotion, Douyin challenge, and information flow delivery;

3. Track short video seeding data to achieve product and sales integration, including but not limited to: tone output, brand positioning, topic dissemination breaking circle, and actual sales growth;

4. Select KOLs with top potential, spend extra money to purchase copyrights, and purchase information flow traffic to attract Tmall or Douyin stores;

5. Start the closed loop of Douyin store’s own live broadcast, including but not limited to: live broadcast by your own employees, finding a third party to broadcast on your behalf, multi-matrix live broadcast by agents and dealers, 24-hour live broadcast by a single account, and multi-matrix accounts. (Each store can be associated with 10 self-broadcasting rooms)

Going through these five stages can be imagined to test the patience of enterprises, and it is not an exaggeration to say that only one in a million can persevere.

03. Analysis of the formula for Douyin companies to achieve monthly sales of one million yuan through self-broadcasting

Business Live Broadcast Formula

Which corporate self-broadcasting model will win in the long-term melee? The core of corporate self-broadcasting is to sell goods rather than to gain fans. Here we must clearly define a formula:

►TikTok live streaming sales formula

GMV = conversion power of live broadcast room × traffic power × live broadcast duration

These are the three factors that most affect the GMV of the live broadcast room.

The simplest way is to increase sales by extending the time. Therefore, the first rule for companies to broadcast their own content is that the live broadcast time must be long. However, the hosts are also human beings, so the company needs a large number of hosts. Therefore, improving the time dimension is relatively easy to achieve.

Next is the improvement of traffic power and conversion power of live broadcast rooms.

► Difficulty level of Tik Tok live streaming

Why is the difficulty coefficient of traffic power only 4 stars for enterprises, while the difficulty coefficient of live broadcast room conversion power is 8 stars? I have met many friends whose first words are basically “There is no one in my live broadcast room”. They think that the difficulties encountered in self-broadcasting are all traffic issues. In the last two training courses, the number of people who signed up for the information flow delivery course was 50% more than those who signed up for self-broadcasting.

► Number of people who signed up for Qun Xiang's private lessons

The essence of this cognitive gap is the high uncertainty of the traffic distribution mechanism in the Douyin ecosystem, which makes most people feel insecure about traffic. From another perspective, no one will feel that the traffic is too much. No matter how many people are online in your live broadcast room, you will always feel that there are few people in your live broadcast room in the end. Even if there are 10,000 people online, which would satisfy most people, Luo Yonghao would still feel that the number is too small. Therefore, more or less traffic is relative.

However, in fact, as long as there are 10,000 fans and 40 people online, you can achieve a monthly sales of one million live broadcast room

Please look at the self-broadcasting data of this company——

►44 people online, 14 hours of live streaming per day, sales of 78,000

44 people were online, live streaming for 14 hours a day, with sales of 78,000. Of course, there is a prerequisite, which is 10,000 accurate live broadcast fans, not short video fans. What is the easiest way to get these 10,000 precise fans? Information flow delivery! Use a massive engine, and follow Luban! As long as you have money, you can continue to buy traffic from ByteDance!

Many people think that ByteDance is the largest content company. This is an illusion. ByteDance is the largest traffic dealer in the universe. Compared with other traffic platforms, it sells traffic more efficiently and accurately. This is their business model! One carrot, one hole, it's calculated very carefully!

Therefore, in essence, if you have "money", you can continue to buy traffic and solve the traffic dilemma. Many people would jump up immediately after hearing this, "You are talking nonsense! My budget is sufficient, but there is no one in the live broadcast room!"

Don’t be impatient. Let’s start from the dimension of “ByteDance is the largest traffic dealer in the universe” and combine it with the reasoning of “there is no one in the live broadcast room” to think about the essence of this problem. Why do you encounter the dilemma of no one in the live broadcast room?

Let’s assume another situation, in the first week——

If A spent 10,000 yuan on advertising and sold 50,000 goods in the live broadcast room, A would definitely say, "Invest as much as you can!"

If B spends 10,000 yuan on advertising and the live broadcast room only sells goods worth 10,000 yuan, B will start to think: Should I continue to advertise?

If C spent 10,000 yuan on advertising, but only sold goods worth 10 yuan in the live broadcast room, C would have to be a madman to continue investing!

A is feeling extremely happy, B is feeling extremely conflicted, and C is feeling extremely miserable. So, by the second week, let us guess how popular ABC's live broadcast room will be?

A's live broadcast room is very popular.

There are not many people in B's live broadcast room because he is very stingy in buying traffic.

There must be no one watching C’s live broadcast (the conversion rate is low, he has lost everything, and he definitely doesn’t want to lose money buying traffic).

So, do you understand? Don't always think that others are taking advantage of you, don't shift the blame to the pitcher, accusing him of low ROI, and don't blame TikTok for not giving you traffic. There is no one in the live broadcast room, which essentially means that the conversion power of the live broadcast room is not enough! The cost you spend on traffic purchases is lower than your return, you cannot get positive feedback, and you feel that you should not invest anymore, so this prevents you from continuing to get more traffic in your live broadcast room.

If you encounter similar problems in the future, please forward the following golden sentences:

1. What efforts have you made to improve the conversion rate of the live broadcast room?

2. Is the atmosphere group for the live broadcast room in place?

3. Has the anchor’s speech been polished?

4. Have you ever thought about the product selection?

5. Have you ever practiced the rhythm of live streaming?

6. Did you put a lot of thought into decorating the live broadcast room?

7. Have you ever promoted KOC content?

8. Have you ever done expert distribution?

9. Have you ever conducted a survey on the industry’s overall market and industry benchmark data?

Regarding the traffic problem of Douyin live broadcast room, I would like to add two points.

Content is the cheapest way to purchase traffic (those with limited budgets, please keep this in mind)

Information flow is the most large-scale way to purchase traffic (special for local tyrants)

Therefore, at this point, we can know that the core that an enterprise’s self-broadcasting organization should build is the “live broadcast room conversion power”.

Usually, this conversion power is composed of the product combination and the host's words, which influence each other. How to judge the conversion rate of a live broadcast room? Look at the UV value.

►Conversion index of live broadcast room

Only when the UV value is greater than 2 and the conversion rate of goods is greater than 2% can it be proved that your company’s self-broadcasting has reached the passing line.

► Average live streaming room with monthly sales of 1 million

Let me show you the market average of UV value. The top celebrities like Li Jiaqi/Viya have 5-6, the mid-level celebrities have 2.94, and the corporate self-broadcast has 1.94 . After looking at the data, you will understand where you are.

The mad pursuit of traffic and the determination of performance based on whether TikTok can become popular today, or whether a pitcher can throw a 1 to 10 target, this kind of upside-down behavior only proves that this company has not thought clearly. A more scientific approach is to continuously improve the conversion power of your live broadcast room, and then provide pitchers with more tolerant (lower ROI indicators) delivery conditions. Then you can get a steady stream of new traffic from TikTok, form a relative traffic monopoly, and force your peers to say only one sentence: "Huh! Brand X, what else can it do besides having money to buy traffic?!"

Wow, that's the highest compliment. This is not a joke, these are the exact words of our customers.

►Data of a certain enterprise Chan Mama

This company's original monthly sales revenue was 5 million. After entering Douyin, it began large-scale KOL distribution, KOC short video promotion, information flow delivery, self-broadcasting and third-party broadcasting. In one year, it achieved a monthly sales revenue of 100 million. Douyin's self-broadcasting monthly sales reached 5.5 million, without breaking the price, and its performance was stable. Isn’t this the marketing status that most companies dream of?

►The sales volume of a company

From the graph we can see that in the sales structure of this company, distribution by experts only accounts for 26%, and 74% is the performance achieved by self-broadcasting. Five matrix live broadcast rooms have been established , with the largest main live broadcast room accounting for 36%, the second live broadcast room accounting for 19%, and the third live broadcast room accounting for 11%. Everyone please pay attention to the details. We are not asking you to start broadcasting with the entire matrix right away. Instead, we will add a new live broadcast room every month, step by step. Douyin officially supports multi-blue V matrix live broadcast, as evidenced by the screenshots:

► Tik Tok Blue V Matrix Live

In summary

In the past, when we invested in information flow, we took over the product details page.

Today, we invest in information flow, and undertake short videos + attract traffic to Tmall stores

In the future, the information flow will be taken over by Douyin live broadcast room

04. The key to success of enterprise self-broadcasting: replicable training

Keyword: Replicable Training

Looking through the phenomenon to the essence, what value does corporate self-broadcasting provide?

Up to now, agency operating companies, training institutions, MCN institutions, and even MCN influencers have announced that they are entering the corporate self-broadcasting business. So what is the core competitiveness of Douyin live-streaming e-commerce companies, and what kind of barriers can they build to have the last laugh?

► Broadcasting on social media

It is not difficult to sort out this mess. To judge the pros and cons of companies that provide self-broadcasting services for enterprises, we need to see the essence through the phenomenon and grasp one core point: what kind of value does self-broadcasting for enterprises provide?

I believe that the core value of corporate self-broadcasting can be demonstrated in only two aspects: improving the comprehensive training efficiency of anchors through industrialized processes and a set of replicable industrialized training processes.

There is always a natural asymmetry in information learning efficiency between anchors, platforms, C-end, and brand advertisers. Assuming that each of us has the same information, then the decisions we make will tend to be similar. But in reality, no two people have exactly the same cognitive information in their minds, so everyone will respond differently to different things.

Some people can impress the minds of C-end users with just a few words, which requires emotional thinking. Some people are born with a very keen sense of the logic and rhythm of e-commerce operations, which tests rational thinking. If you possess both of these abilities at the same time, you will basically become a leader.

Many practitioners believe that the enterprise-run broadcasting industry is an industry that does not pursue production efficiency, has no economies of scale, and cannot be industrialized. Actually, it is not. In addition to the mass production of short video content, the core value of corporate self-broadcasting is more importantly reflected in the comprehensive industrial training efficiency of anchors, including anchor speech, model polishing of the live broadcast room, traffic amplification, customer private domain operations, etc.

1. Anchor’s speech

What is more important in creating the anchor's speech is the combination of the atmosphere of the live broadcast room and the selling points of the product speech. A big pitfall here is that the speech system is different from that of influencers. Influencers will act as brands, interact, and perform bargaining techniques. There is no other way, just to improve the atmosphere of the live broadcast room, quarreling and acting, this is the simplest way and the easiest way to achieve the core point.

However, in today’s self-broadcasting era, the content output of a broadcaster’s rhetoric is like Wang Po selling melons and boasting about them. The basic methodology is similar to that of e-commerce product details pages. It requires a deep understanding of conversion rate and human nature, and the three purchasing factors of users when placing orders.

The buying stage and the corresponding three sales tactics.

2. Polishing of the live studio model

After entering a mature and stable period, each live broadcast room will form a model, such as how many fans enter and how much goods can be sold, thereby estimating the revenue.

In this link, there are three growth cards: product selection, conversion promotion and professionalism.

First, product selection.

The misunderstanding here is that many companies have a wide range of SKUs, as many as thousands. So which one should you go to first in the Douyin live broadcast room? Based on my one year of experience, only about 10% of companies choose the right products in the first batch, and most of them need a month or even longer to find out which products sell well in the live broadcast room.

In fact, anchors who have entered the mature stage will also begin to establish their own product selection thinking based on the feeling of the live broadcast room. An anchor who has no product selection thinking should be given up and is not worth training.

So what the corporate broadcasting agencies need to solve is to quickly provide correct information to help anchors choose the right categories.

For example, have you kept a record of the delivery addresses of your core fans, and then update them based on changes in climate and temperature in their area? For example, it’s winter now, what new products should people with dry or oily skin use? In which places in the summer when the temperature is 30 degrees, do you need to use sunscreen? And discuss with the pitchers what the specific combination of sun protection products should be like, including parasol + sunscreen + sunscreen spray, which ones are used for drainage, which ones are used for activities, and the after-sun repair series for sunburn, etc.

Second, promote conversion.

For excellent live broadcast companies to broadcast themselves, preparing live broadcast scripts, organizing product features and selling points (advantages and features), and pre-setting marketing phrases to break the ice and make conversions (sales talk and prices, etc.) are all basic skills.

Don’t think this is easy because the principles are easy to understand, but how about putting them into practice?

It should be noted that some "industry experts" can talk about these methodologies very well, but they have never set up stalls to sell goods themselves, so they are most likely theoretical people. Why? Because I can’t grasp the core.

Let me give you the simplest example. If you are selling cosmetics, what is the most cost-effective way to promote conversions?

The answer is: decoration of the live broadcast room. Here is an example for you.

Usually, the anchors of enterprises explain the products to users like this:

►Usually corporate live broadcast room

Your competitors explain their products to users like this:

► Competitors’ live streaming rooms

I don’t need to say much about who has a higher conversion rate or a lower one.

Third, professional

Improve the professional knowledge of the anchor. In essence, the company's own anchor is largely positioned close to offline shopping guides. Therefore, improving professional knowledge can enhance the level of personal image and increase the trust of fans, which can lead to a higher conversion rate.

There is a lot of content on how to improve the professional knowledge of anchors, but I will only share the point that I feel most deeply - professional knowledge is a long-term accumulation process, and it is by no means something that can be trained overnight by a company's own broadcasting organization. It even depends more on the anchor's self-study.

The running-in of the live broadcast room model requires us to work on the details point by point. It is a systematic project, including but not limited to the following parts:

1. How to schedule multiple anchors (female anchors will take leave because of their periods)

2. How to synchronize live broadcast data and operations

3. Composition of product selection

4. Order of products on and off shelves

5. Live broadcast room activities

6. Live studio background

7. Live broadcast room atmosphere group

8. KOC content seeding

9. Correlation between short video content and live broadcast room

10. Expert Distribution

3. Amplify the traffic of live broadcast room

If live streaming of highly entertaining content is naturally efficient in gaining fans, then for companies to broadcast their own content, it is only natural to spend money to buy traffic over the long term.

Once the anchor has run through the traffic purchasing monetization channel, he can accelerate the amplification process by investing in marketing expenses. It must be emphasized that investing in marketing expenses is only for amplification, not to make an anchor go from not making money to making money.

Unfortunately, I have seen 90% of the companies only want to increase traffic instead of solving the conversion problem first. After polishing the live broadcast room model, it is easy for self-broadcasters to calculate the ROI of the investment, including how much money was spent this month, how many fans gained, and how many goods were sold. At this time, the company can make a quick decision whether to invest a large amount of marketing expenses to quickly increase GMV.

The information I have is that many marketing leaders of emerging consumer products have already figured it out, and next year we will see a large number of corporate live streaming rooms reaching tens of millions in monthly revenue.

Think about a live broadcast room with low UV, which has not been verified yet and requires a budget of 2 million. Would you hesitate? Is it just a pie in the sky for the team?

4. Customer private domain operation

What are the private domain operations in your mind? Create a WeChat group with your fans and send advertisements every day? Today, Douyin’s own live broadcasting is not yet ready, so it seems a bit early to talk about private domain operations. But, I just want to tell you with the case of my service to clients: Today everyone emphasizes private domain traffic and interaction, but it is obvious that an anchor who can add fans as friends and like fans’ posts on WeChat Moments, her fans’ ability to spend money will amaze you.

So, as a live broadcast company’s own broadcasting organization, how many customers can you help the anchors to deeply operate as WeChat friends? Think further, if this customer wants to place an order, do you need to guide the order in the private domain, or guide him back to Douyin to place the order? What kind of interest relationship is formed between the employees who operate private domain operations and the anchors? As you can imagine, this whole model is extremely complex, and if it is not handled properly it can easily lead to internal friction.

An excellent corporate self-broadcast operator has very high comprehensive ability requirements. He must understand content, be able to talk about business, not be fooled by the supply chain, be extremely sensitive to traffic, be good at team management, be able to develop anchors, and preferably be able to socialize well with girls. I know that most straight men have never thought about whether a group of women (female anchors) is easy to manage? Wow, a decathlon.

Do you think that's enough? No, this can only solve the problem of one live broadcast room.

In order to have multiple live broadcast rooms to form a matrix, an excellent corporate self-broadcasting system must create a set of replicable industrialized training processes. Because the cost of trial and error is too high and companies that lack an overall strategic perspective often find it difficult to see the future direction of the market and where their stop-loss points are, resulting in the success of one anchor leading to the failure of a system.

The key point is that the most valuable enterprise self-broadcasting system should have the following characteristics:

1. Have a trader with very strong comprehensive ability

2. A set of anchor industrial training mechanism, standardized mass production of anchors

3. Possessing strong traffic coordination capabilities, it can regulate both the purchase of live broadcast room traffic and the conversion of live broadcast room to form a profit model

4. Being good at emotional comfort and building a systematic service system can enable anchors to focus on improving their performances without being tempted by the outside world.

Please follow the above order and improve your abilities.

Having said so much, I think the future structure of the Douyin live streaming e-commerce industry will be: a few expert MCNs will monopolize the top live streaming, and cooperate with a few corporate self-broadcasting (including agency operations) companies to monopolize the middle of the vertical industry and earn the attention and profits of the entire industry.

Where will you appear in this magnificent network of value?

Author: Guanjianming Zhang Yang

Source: Shusong College Content Team