The growth of video commerce in Southeast Asia

Video Marketing has become an indispensable tool in Performance Marketing. Platforms like YouTube offer unparalleled reach and engagement, making Video Commerce a driving force in E-Commerce, especially in Southeast Asia. The trend of integrating shopping options directly into video content is fueling explosive growth. This feature allows businesses to showcase their products more effectively and increase their sales. In this post, we take a look at the latest developments and success factors of Video Commerce in Southeast Asia.

In recent years, Video Commerce has evolved significantly. In 2024, Video Commerce already accounts for 20% of the total E-Commerce business volume in Southeast Asia. This is a remarkable increase compared to just 5% in 2022. This development is largely due to the increased trust consumers have in video content. Consumers are increasingly relying on videos to research products and verify the quality and benefits of a product.

In Southeast Asia, YouTube and TikTok dominate the video commerce landscape. With 224 million monthly active users, YouTube leads the platforms. TikTok follows with 173 million users. Short videos, such as YouTube Shorts and TikTok clips, are a key driver for customer acquisition. According to a survey, 93% of marketers report a significant increase in customer acquisition through Social Media Video Ads.

One of the most innovative developments in Video Commerce is the ability to purchase products directly from the video. Platforms like YouTube Shopping have integrated shopping features. These allow users to purchase products through embedded links in videos, Shorts, and livestreams. This significantly shortens the buying process and leads to higher conversion rates. An example of the success of this feature is the L’Oréal Thailand campaign. The integration of shopping functions into their video content led to a tenfold increase in paid views.

The integration of videos into the shopping process leads to significantly higher conversion rates. Studies show that video-based shopping experiences achieve up to 3.6 times higher conversions. Additionally, they reach 5 times higher add-to-cart rates compared to traditional static product pages. Especially personalized formats like live video shops and 1:1 video chats further boost engagement. They create a deeper connection with the customer.

A standout example of the success of Video Commerce in Southeast Asia is the fashion industry. Brands in the fashion industry are seeing an increase of up to 170% in repeat purchases. This is achieved through the use of interactive video content. The electronics industry also benefits greatly from the integration of Video Commerce. Here, repeat purchases increase by up to 275%.

Video Commerce is the way of the future. The fusion of entertainment and shopping options creates a seamless experience for the consumer. This leads to a higher willingness to buy. Companies in Southeast Asia that embrace this development early can increase their sales. Additionally, they build a closer connection with their customers.

Do you want to successfully position your business in Video Commerce? Let us help develop customized online marketing strategies. We will increase your reach and improve your conversion rates. Contact Media Beats GmbH to learn more about our performance marketing services. Together, we will develop an innovative Video-Commerce Strategy.