YouTube is stepping up its game in the e-commerce world by adding shopping features to its TikTok-like short-form video product, Shorts. This move comes as the platform looks to broaden its revenue streams and compete with other digital giants like TikTok and Meta.
The new shopping features allow viewers in the United States, India, Brazil, Canada, and Australia to purchase products as they scroll through Shorts. Eligible creators in the United States are currently testing the ability to tag products from their own stores, and YouTube plans to expand this feature to more creators and countries in the future.
In addition to the shopping features, YouTube is also experimenting with an affiliate program in the United States that allows creators to earn commissions through purchases of recommended products in their Shorts and regular videos. The platform plans to gradually expand the experiment to more creators this year.
A spokesperson for YouTube stated, “We firmly believe YouTube is the best place for creators to build a business and shopping is a piece of that.” This announcement comes a few weeks after YouTube revealed that creators will take a 45% share of ad revenue starting this year.
Despite the success of YouTube Shorts, the platform’s quarterly ad revenue declined 1.9% year over year and missed expectations, according to Alphabet’s quarterly earnings report released last month. It is likely that YouTube sees the new shopping features as a way to broaden its revenue streams amid a slumping advertising market.
Over the past few years, YouTube has been working to transform its platform into more of a shopping destination with product launches like shoppable ads and the ability to shop directly from live streams hosted by creators. With these moves, it makes sense for YouTube to bring shopping to Shorts too.
However, YouTube is not the only digital giant betting on the future of shopping. TikTok and Meta have also invested heavily in this space. Last week, TikTok quietly began testing TikTok Shop in the United States, which allows users to buy products directly through the app.
Prior to this expansion, the feature was only available in the United Kingdom and parts of Southeast Asia. Earlier this year, the company also piloted TikTok Shopping in the United States, United Kingdom, and Canada in partnership with Shopify.
Meanwhile, Meta-owned Instagram allows creators to share products in live streams and in its shopping tab, which lets users scroll through recommended products and make purchases. Brands are also able to make their profiles shoppable through product catalogs.
It is clear that these tech giants are seeing the potential in the shopping space and are working to become all-in-one destinations for their users. For YouTube, the addition of shopping features to Shorts could be a game-changer for creators looking to monetize their content on the platform.
The move to add shopping features to YouTube Shorts is also significant because of the platform’s popularity. According to the company, Shorts has topped 1.5 billion monthly users. This is a huge audience that could potentially turn into customers for creators and brands alike.
However, it remains to be seen how successful these shopping features will be. While some users may appreciate the convenience of being able to purchase products while watching Shorts, others may be put off by the integration of shopping into their entertainment. Additionally, there is always the risk that the shopping features could be seen as too intrusive or annoying, leading to a decrease in engagement.
Despite these potential risks, it is clear that the future of online shopping is looking more and more integrated with social media every day. As more and more people turn to digital platforms for their entertainment and shopping needs, it makes sense for companies like YouTube, TikTok, and Meta to invest in the shopping space.
Overall, the addition of shopping features to YouTube Shorts is an interesting move that could have a significant impact on the platform and its creators. It will be fascinating to see how users respond to these new features and whether or not they will embrace shopping as part of their Short-form video experience.