Rafael Cappelli, founder and partner of On The Nose, talks about the creation of the format and the results
Year after year, so-called live commerce is entering the Brazilian market, especially on dates that are driven by shopping, such as Black Friday, which this year had a performance below expectations for retailers.
The concept of the practice, in general, is to place guests and presenters to present a program that will be focused on the contracting company’s products with one objective: to sell. The data shows that the format should continue to grow, since analysis by Google and Ipsos has already shown that around 5 million Brazilians started to buy online between 2021 and 2022, and by 2025 e-commerce should grow by 42%.
Despite being a trend, this year, On The Nose invested in another format, called podcommerce, uniting Podpah and Magazine Luiza in a five-hour program, involving all of the content hub’s programs and guests such as Sabrina Sato and Da Lucia.
To the propmark, Rafael Cappelli, founder and partner of the agency alongside Andr Barros, tells how the format came about and what the results were obtained. Read the full interview:
Sub-commerce
The process of acculturation of Brazilians with podcasts has been going on for at least 10 years in our country. a format where people are willing to spend more time than usual. They spend 2, 3, 4, 5 hours watching or listening to this format. At a time where brands, advertisers and even creators are vying for attention, this fact in itself was a great insight.
At the same time, lives commerce is gaining a lot of scale and importance and Brazilians are also increasingly accustomed to this format. We have the example of creators selling millions and millions in a given window of time and brands adhering to the format in Brazil and around the world. Out of curiosity, the global live streaming and e-commerce market, including live shopping, jumped from US$6BI in 2020 to more than US$25BI in 2023 (source: coresight research). Combining these 2 formats seemed very promising at the time of planning. It was through this provocation that we decided to invest in the creation of this new format: podcommerce.
Feasibility
Structuring a project like this is a huge responsibility and demands quality time that we often don’t have. This is one of the main dates in retail and a failure, poor planning or execution can compromise the result of an entire year. Therefore, we designed 4 basic premises to mitigate the risks that guided us at all times: i) alignment of expectations and objectives; ii) a very fluid process; iii) involvement and commitment of everyone involved – client, agency, platform, creator, and iv) respect between everyone.
I respect the basic premise, but sometimes, throughout a turbulent process where changes and errors are known to happen, stress ends up speaking louder and where people get lost. With respect and clear alignments, everyone rowed together towards the same direction and when something went wrong, and yes, many things went wrong, one would support the other. It was beautiful!!!
In addition to designing the project, the agency played a very important role, especially in the midfield, to find a balance between editorial and product sales.
Expectations and results
The expectation was always to have the first and biggest podcommerce on Black Friday. All aligned KPIs were met, whether looking at social numbers or looking at the client’s business. There were 2.9 million unique users, a peak of 97 thousand simultaneous people, 110 thousand interactions, 6 million accesses to the Magalu APP, the most searched brand on Google (Black Friday), 30 million people impacted by Masthead.
Balance
Finding this balance between editorial and sales was one of the biggest challenges. On the one hand, we know that content\entertainment\charisma are the drivers of Podpah’s success and that, therefore, we could not give up and run the risk of dispersing the audience (which is just subscribers to the channel, we are talking about 7MM), which would certainly compromise the results. At the same time, we are talking about Black Friday, the time of year when people are more willing to consume, take advantage of opportunities and are more permissive with the intervention of offers. With this in mind, we divided the podcommerce structure into 4 major territories: women & life style, technology & games; sports; gastronomy & cooking. Based on this division, we sought to integrate the offers as much as possible within the content, thus avoiding large gaps or breaks and inserting the advertisements within the context of the conversation that was taking place.
Team
Considering On The Nose team, Magalu team, Youtube team and Podpah team around 40+ people.
Trend
It has been said for some time that open TV is dying, just as I have heard a lot of talk that podcasts are also a saturated format. In my view, even in supposedly saturated media or formats, there is always an opportunity for evolution, just as we did with podcommerce. It was a very interesting mash-up that gave a lot of results, buying its value. I do believe it can be explored for a good while longer. That’s the beauty of the business.
Differential
In conventional lives you end up having to create the new context, the show, the experience and the creator/influencer becomes a mere presenter. At the end of the day, in a conventional live we end up taking the influencer out of his natural habitat, where he already performs and has mastered shortcuts and the audience. are there, the audience is already used to the creator’s veneer. The trend is a more fluid experience with less of a mega show feel.
Beneficios
The definition of participants was also one of the most important pillars of the project. The curation of names was enormous and each of them went through a thorough validation process. That said, for participants to have their name endorsed by Magalu/Youtube/Black Friday is a large window of visibility and construction of relevance and differentiation. For Magalu, the project helped to position the brand as the most searched for on Google during the Black Friday period, which if we think about business, is an exceptional result as it is where people search for information before taking any action. All of this further enhanced business results to be the most profitable Black Friday for the brand.