The news: Meta announced new live shopping capabilities ahead of the Cannes Lions festival as it looks to capitalize on growing consumer and brand interest in the format.

Live Video Ads: Meta is launching the format on Instagram and expanding it globally on Facebook, enabling businesses to promote live videos, expand their audiences, and drive sales. The company is working with US live commerce companies including CommentSold, Firework, LiveMeUp, Sprii, and TalkShopLive to turn eligible livestreams into ads.

Live Shopping Tools: Advertisers on Facebook can now offer livestream viewers an in-stream shopping experience that lets them browse and discover products and check pricing without leaving the video.

Meta also introduced other features meant to ease the path to purchase, including a forthcoming option for shoppers to use virtual cards—temporary, one-time card numbers generated from users’ Mastercard or Visa accounts—to check out on Facebook and Instagram.

Why it matters: We expect US livestream ecommerce sales to approach $20 billion this year, marking a 35% increase YoY. At the same time, buyer growth is slowing significantly: We forecast a 9.5% rise in livestream ecommerce buyers this year, less than half the growth rate in 2025. Sales growth is also forecast to decelerate over time.

With sales projected to grow faster than buyers, existing shoppers will account for a higher share of revenues. That increases the urgency for Instagram and Facebook to make a play for buyers now or risk ceding the market to established operators like TikTok Shop and Whatnot. Whatnot recently recorded its 1 billionth order after six and half years of operation, while TikTok Shop has turned shoppable livestreams into an important brand-discovery format. By comparison, both Facebook and Instagram are making a second attempt at live shopping after short-lived forays earlier in the decade.