Impact of viewer engagement on gift-giving in live video streaming

•Viewer engagement is positively associated with gift-giving decisions.•Socialization motive has a high correlation with gift-giving behavior.•The relationship between a giver and a streamer affect the amount of gifts.•Gift purchase behaviors were different depending on user gender and content genres.•Previous experience of purchasing items affect gift purchase behaviors. This study investigates the effect of viewer engagement on gifting items to a streamer in a live video streaming. Data were collected from AfreecaTV, a leading live video streaming platform in South Korea, to examine viewer engagement and gift-giving behavior. After analyzing 2,294,837 viewers over a three-month period, the empirical results provide evidence that viewer engagement is positively associated with gift-giving decisions. However, the impact of viewer engagement on the amount of gifts purchased is different depending on how the engagement is measured (i.e., by stream or by channel). This study empirically proves that the motive for socialization has a high correlation with gift-giving behavior, which is considered as commoditization of a viewer’s social interaction while consuming media. The study concludes with a discussion on practical implications for live video streaming services and suggestions for future research.