Bangkok: IdeasLabs has highlighted the “Jenny Life” phenomenon as evidence that brands are increasingly paying only those who generate real sales.
According to Thai News Agency, the Executive Director and Founder of IdeaLabs Co., Ltd. (IdeasLabs), Thanadol Pitiyanuwat, emphasized that the Jenny Live trend showcases a significant shift in influencer marketing. Live Commerce is evolving beyond product sales through mobile screens into a strategic competition, where conversion rates, return on investment (ROI), and data-driven value become the key metrics for success.
IdeasLabs points out that “Jenny Live” is transforming Live Commerce and Influencer Marketing in Thailand by establishing sales as the primary criterion for measuring value. This shift compels brands to focus on ROI before making payments. The industry is entering a new era where brands compensate only those who drive sales. To adapt, influencers and brands should learn new techniques and strategies to build measurable sales. IdeasLabs recommends three strategies for survival in this era: setting reasonable fees, adopting transparent income models, and understanding rapidly changing platform trends.
The fixed-rate plus commission model is emerging as the standard for Key Opinion Leaders (KOLs), providing fair incentives and allowing brands to see measurable results. Influencers and KOLs now need to transform from mere product recommenders to professional salespeople. They must understand consumer behavior, select suitable SKUs, and tell compelling stories that can turn views into sales. Their role now requires not only effective communication but also the ability to entertain and convert viewers.
From this phenomenon, influencers and KOLs can learn key lessons to thrive in an era where brands prioritize sales performance. They should set a reasonable value per follower and consider cost/return, ensuring long-term collaborations through proven sales. A transparent and diverse revenue model, combining fixed and commission-based incomes, will become crucial. KOLs must also stay informed about fast-changing platform trends, as platforms may reduce support, impacting KOL commissions.
Mr. Thanadol further advised brands to shift their strategies from generating buzz to calculating returns systematically. By employing the “Break-Even Point” concept, brands can effectively plan KOL ROI. Future models will encourage brands to pay based on comprehensive cost calculations, including product price, cost of goods sold, commissions, advertising costs, platform GP, brand profit, and management costs. This approach helps brands set appropriate price levels and identify the Break-Even Point, ensuring worthwhile returns from influencer investments.
For example, if a brand sells a pack of drinks for 100 baht with a total cost of 95.35 baht per unit, it must sell at least 915 orders to ensure a profitable return on influencer investment. Additionally, brands should expect a Reach Guarantee to manage risks effectively.
IdeasLabs views Live Commerce as a strategic tool, not just a viral sales mechanism. It should meet both short-term and long-term brand needs, from creating immediate awareness and clearing inventory to building a brand story and fostering customer retention. Live Commerce should evolve into a strategic entertainment series, continuously engaging viewers rather than being a one-time broadcast.
Ultimately, the ability to decode the Reach-Conversion-Profit equation, driven by Entertaincommerce, will determine leadership in the new Performance Marketing landscape.