It will not be an understatement if we say YouTube can be called a multipurpose platform. There are almost a million things it can be used from. From watching movies to streaming games to listening songs to downloading songs from YouTube to mp3 and even also shopping. Since YouTube has a user base of around almost 2 billion users therefore it can be said there is literally no other larger platform to spread awareness for sellable products. Contrary to popular belief it is not video watching website, it is also used as a search engine. Brands have been advertising on YouTube extensively and some D2C brands even get about 10 percent of their sales on their website from YouTube. So, it only makes sense for YouTube to take on the next big step—foraying further into the world of e-commerce. And as a brand to tap this opportunity to the fullest.
YouTube has been an effective marketing channel for years now through advertisements and affiliate links. However, with this new shopping feature, brands will directly engage with prospective buyers on the site and sell their products. The feature is currently undergoing initial testing with a limited number of video channels, according to information provided by a YouTube spokesperson. Once launched, it could become a tremendous game-changer in e-commerce and open up major avenues for retailers worldwide.
How can this be made to work?
Okay so YouTube has already started spreading commercial advertisement through their normal content. YouTube are asking content creators to use their software to tag and track the products they will be featuring in clips. The data is to be linked to Google’s shopping tools and analytics. Google has also been testing ways to integrate Shopify for selling through YouTube.
Online shopping has significantly boomed in the pandemic period, allowing social platforms such as Facebook and Instagram to reap benefits through their shopping feature wherein users make purchases directly on the site by browsing through catalogs offered by sellers. Through YouTube Shopping, you can create video content that will be used to create catalogs for the viewers to explore and buy directly. It has been unclear so far as to how YouTube will earn revenue through the new shopping feature, but they will presumably make a cut from the sales made on their site by the retailers.
Impact on Retailers
Regardless to what can be expected, retailers will now be able to gain a lot of advantages by the implication of this new feature.
After the introduction of the new shopping feature, the use for intermediary sources and middlemen can be removed and now YouTube can now act as a direct call-to-action for customers to buy their particular products. A video is being played and it is able to make a proper impact on the viewer, instead of having to wait or look for a place to buy and risking losing the excitement, customers can buy the product during the video also and not also needing to leave the site.
Due to the implantation of marketing and economic solutions into video content it allows for a lot of leeway for influencers and sellers to properly tailor their advertisements for their products on sale. For instance, if you have a food and beverage brand, users can buy your products directly while watching a recipe video, if your products are among the ingredients. Instead of affiliate links, a buy button on the same site can be more effective in spurring users on to make an instant purchase.