Is more always better? The effect of audience size on sales performance in live streaming commerce: A multimethod study

Live streaming commerce has rapidly grown, becoming a significant driver of online retail and economic development. Audience size is critical in live streaming events, guiding brands in streamer selection and representing a primary objective that streamers aim to maximize. However, how audience size impacts sales performance in live streaming commerce remains an unresolved foundational question. To address this, we undertake a multimethod study that includes an analysis of observational field data drawn from 61,261 live-streaming samples involving 478 streamers on Douyin (TikTok in China), complemented by two experimental studies: laboratory experiments and simulations using large language models (LLMs). The study finds strong evidence of an inverted U-shaped relationship: larger audience sizes increase the potential reach of the live streaming; they also reduce the level of interactivity and the sense of presence, which in turn decreases purchase likelihood. Furthermore, higher viewer engagement duration and product presentation bandwidth, along with lower product assortment diversity and fan density, mitigate the negative impacts of excessive audience size, flattening the inverted U-shaped relationship. By integrating these insights into managerial practice, managers can refine the live streaming strategies, balancing audience size while maintaining high interactivity and presence to maximize the effectiveness of their marketing campaigns.