YouTube Enhances Shoppability with New Advertiser Tools

YouTube recently previewed upcoming features designed to integrate shopping directly into its video platform. A new interactive element, termed brand extensions, is being introduced for advertisers.

This new ad format empowers advertisers to prominently display a website link or a specific call-to-action within their connected TV video advertisements.

Seamless Mobile Integration

Viewers will have the option to select “send to phone,” which transmits the promotion or URL directly to their mobile device. This transfer occurs without disrupting the ongoing video playback.

Upon receiving the link, consumers can then access the advertiser’s website and proceed with purchases – browsing, adding items to their cart, and completing transactions – at their convenience.

Targeted Advertising and Performance Measurement

Advertisers will be equipped with intelligent targeting capabilities, ensuring ads are shown to relevant audiences based on the video content being viewed. For instance, a fitness-related video could showcase an ad for new running shoes.

Furthermore, YouTube confirms that conversion data generated by these brand extensions will be directly measurable within Google Ads.

Expanded E-commerce Capabilities

In addition to brand extensions, advertisers can now incorporate browsable product images into their direct response video ads. This encourages viewers to click through to the advertiser’s website or application.

These developments represent a broader initiative by YouTube to expand its presence within the e-commerce landscape.

The Rise of Video Shopping

Contemporary consumer behavior, particularly among younger demographics like Gen Z, demonstrates a preference for simultaneous video viewing and shopping. This trend has fueled the growth of numerous video shopping platforms, including Popshop Live, NTWRK, ShopShops, TalkShopLive, and Bambuser.

Social media giants like Facebook have also invested heavily in live shopping and video-based commerce across their platforms, Facebook and Instagram.

TikTok's E-commerce Success

TikTok has rapidly emerged as a significant player in video-based e-commerce. Walmart, having previously explored a potential acquisition, has hosted multiple shopping livestreams on the platform.

TikTok’s success is also attributable to the introduction of tools that seamlessly direct viewers to websites via integrated links and integrations with platforms like Shopify.

YouTube's Market Position

Despite the competition, YouTube maintains a substantial potential audience for video shopping. According to Comscore data, YouTube accounts for 40% of watch time across all ad-supported streaming services.

Notably, YouTube is one of only two ad-supported services among the top five streaming platforms in the U.S., which collectively represent 80% of the connected TV market.

Creators as E-commerce Drivers

Beyond advertising, YouTube intends to leverage its creator network to drive e-commerce traffic.

Reports indicated that YouTube was requesting creators to tag and track products featured in their videos. This initiative was further detailed in February, with the announcement of a beta shopping experience allowing viewers to purchase items directly from their favorite creators, planned for wider release in 2021.

Distinction Between Features

It’s important to note that brand extensions are distinct from the creator-focused shopping experience. Brand extensions provide advertisers with a dedicated mechanism to facilitate shopping directly from their video content.

Future Interactive Features

YouTube asserts that the new brand extension ads are merely the first in a series of planned interactive features. A global rollout of this feature is anticipated later in the current year.