NEW YORK: Livestreaming app Periscope has no immediate plans to introduce formal advertising products, its chief executive officer has said, and brands should instead think about creating content for the channel.
Kayvon Beykpour reminded Adweek that the app was not even one year old and that its focus remained on developing a product that people wanted to use.
But, he added, "We've seen plenty of brands put a lot of creative effort and money into producing compelling content in Periscope that for them may serve as advertising". And he pointed to the example of BMW which launched a car via Periscope.
"They had this beautifully well-lit studio where they had this new car that one of the product managers walked around and gave a tour of," he related. "That's work that BMW put into producing that content themselves, and it wasn't sponsored in any way on Periscope."
The automotive category has emerged as one of the most enthusiastic users of Periscope: a recent Intelligence Report from think tank L2, Social Platforms 2015, counted 103 accounts from this vertical, compared to 75 for retail and 61 for sportswear.
That same report suggested, however, that while the auto sector had embraced the platform "aggressively", sportswear brands had been better able to "leverage the platform's inherent resources".
Its research showed that sportswear brands received more than five times as many 'hearts' as the average brand account, largely because live sporting events and product releases are a natural fit for the platform.
And it highlighted what Nike has been doing in this field, with, for example, followers of the @NikeBasketball account being able to watch the exclusive unveiling of Kobe Bryant and LeBron James-sponsored shoes.
"The secret to Nike's popularity is compelling content, rather than direct advertising," it noted.
Data sourced from Adweek, L2; additional content by Warc staff