‘A hybrid of entertainment and commerce’: How NTWRK made over $100,000 from selling goods via Snapchat

By Seb Joseph

Who says social networks can’t be profitable for media owners. NTWRK just made over $100,000 from selling over 400 products on Snapchat in 24 hours.

The product in question was a $250 platinum money counter from celebrity jeweler Bob Baller.

Normally, these products are par for the course on NTWRK’s app where people tune in to watch live shows where guests talk about products that become available to buy as the show airs. People flock to NTWRK for scarce, coveted gear usually backed by a celebrity. But the app is just the start. Moving forward, NTWRK wants to make those products available on social networks too, starting with Snapchat.

Here’s the rundown: NTWRK is airing 10 five minute Snap Originals called ‘The Art of the Drop.’ Each week an artist or creator like Baller is interviewed about the item that’s about to be made available to buy from the show. NTWRK keeps the money made from the sales, while Snapchat keeps the ad revenue. In fact, Snapchat brokered a deal with Hewlett-Packard for ads that run up to 10 seconds to appear at various breaks in the show. Snapchat wouldn’t share details of the deal’s dollar amount.

“Live-streaming commerce is massive in China, but no one has been able to nail it in North America,” said NTWRK president Poksha Fitzgibbons.

Hours after the first episode aired, NTWRK had sold out of the counters it had allocated for the Snapchat order. Neither NTWRK or Snapchat promoted the show so all the demand for the product came from the scarcity frenzy around it. Indeed, NTWRK hyped the limited release of the counter across its own social network, which includes celebrities, fashion-forward influencers and creators, who created their own hype bubble. People wanted the product even before they had seen it.

“We’re seeing social media move from just the sound or the meme going viral to physical products as these platforms, whether it’s TikTok or Snapchat, become a source of culture,” said Jide Maduako, CEO of the influencer platform Yoke Network. “Between influencers endorsing products and the business of scarcity, we’re seeing companies like NTWRK put a fresh spin on the QVC model by merging content and commerce.”

Whenever media owners and tech platforms like Snapchat work together, there’s usually some tension between who gets the better end of the deal. Normally, it’s the publisher that comes off worse. This isn’t one of those instances — at least not yet.

“We had more than 4,300 subscribers [to the show] in the first 24 hours after the Baller episode aired,” said Fitzgibbons. “It’s not earth shattering but its pretty good. If we can continue with that momentum over the next 10 episodes then it gives a chance to develop a consistent stream of content that people on Snapchat want to see. We want to build out a hybrid of entertainment and commerce on Snapchat,” she said.

In many ways, the shoppable series is a proof of concept for NTWRK.

“We want to showcase that we can perform not …read more

Source:: Digiday