Brands Slash Budgets, Boost Live Shopping for ROI in Uncertain Economy

Amid economic uncertainty, brands are slashing marketing budgets but boosting live shopping platforms, driven by demands for measurable influencer performance and data-driven ROI. With influencer spending projected at $266.92 billion in 2025, these platforms excel in metrics like conversions and engagement. This shift prioritizes profitability over virality, redefining retail through authentic, real-time experiences.
Brands Slash Budgets, Boost Live Shopping for ROI in Uncertain Economy
Written by Elizabeth Morrison

As brands tighten their belts on marketing budgets amid economic uncertainty, live shopping platforms are emerging as unlikely winners, fueled by a sharper emphasis on measurable influencer performance. Executives at companies like CommentSold and TalkShopLive report a surge in demand, attributing it to marketers’ growing insistence on data-driven results from influencer partnerships. This shift comes as influencer marketing spending is projected to hit $266.92 billion globally in 2025, according to a report from Influencer Marketing Hub, with live shopping experiences playing a pivotal role in driving conversions.

The mechanics are straightforward yet powerful: influencers host real-time video streams where viewers can purchase products instantly, blending entertainment with e-commerce. But what’s propelling growth isn’t just the format’s novelty—it’s the accountability. “Marketers are no longer throwing money at influencers based on follower counts alone,” notes Jessica Hawthorne-Castro, CEO of Hawthorne Advertising, in discussions with industry peers. Instead, they’re demanding metrics like engagement rates, conversion attribution, and return on ad spend (ROAS), which live shopping tools excel at providing through integrated analytics.

The Metrics-Driven Boom in Live Shopping

This focus on performance is reshaping how brands allocate budgets. A recent Digiday analysis highlights that live shopping firms saw business upticks of 20% to 50% in early 2025, directly tied to these measurement demands. For instance, platforms like Firework are leveraging AI to track viewer interactions in real time, offering brands granular insights that traditional social media ads often lack. Posts on X from influencers and marketers, including sentiments echoed by Gary Vaynerchuk, underscore this trend, with many predicting 2025 as the breakout year for live social shopping on platforms like TikTok Shop and Amazon Live.

Beyond metrics, the human element is key. Consumers, weary of polished ads, crave authenticity—89% trust products demonstrated live by “normal people” over celebrities, per a WARC trend report on Asia’s live commerce boom, which is spilling over globally. In India, the influencer marketing industry is slated to grow 25% this year, powered by 3.5-4.5 million creators, as detailed in the Kofluence Influencer Marketing Report 2025 published by Business Standard.

Influencer Accountability and Platform Evolution

Yet challenges persist. Not all influencers are equipped for live formats, where charisma and quick thinking can make or break sales. Brands are responding by partnering with specialized agencies that vet creators based on past performance data. Statista forecasts the global influencer market at record highs in 2025, but only those delivering verifiable ROI will thrive. In Vietnam, social commerce is booming through influencer partnerships and live streams, with projections to 2030 outlined in a ResearchAndMarkets databook via BusinessWire.

Europe is catching up, with live shopping trends accelerating on platforms like Instagram and emerging local players, as explored in an AWisee blog post. TikTok anticipates a 120% sales increase in live shopping this year, according to ValueYourNetwork reports.

Future Projections and Strategic Shifts

Looking ahead, industry insiders expect consolidation among live shopping providers—currently numbering over 6,900 influencer-focused platforms, up from 1,120 in 2019, per Influencer Marketing Hub. Brands like Walmart and eBay are integrating live features, betting on hybrid models that combine influencer clout with e-commerce infrastructure. X posts from users like Uri Weinberger highlight a “live shopping revolution” driven by AI and authenticity demands, warning that brands ignoring this could fall behind.

For marketers, the lesson is clear: in 2025, success hinges on pairing creative talent with rigorous performance tracking. As one executive told Digiday, “It’s not about going viral anymore—it’s about going profitable.” This evolution promises to redefine retail, turning passive scrolling into active buying, but only for those who measure up.

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