YouTube will deepen its investment in shopping programs next year as the video platform looks to capture a growing social selling market.
That’s according to Michael Martin, YouTube Shopping’s general manager, who outlined the company’s commerce plans in a Financial Times (FT) interview published Tuesday (Nov. 15).
YouTube is already testing an affiliate marketing scheme — in which it pays creators a commission for selling products — with a few United States creators. That program gives YouTube, the creator and the merchant a piece of the sale, according to the report.
The platform also allows viewers in the U.S., India, Brazil, Canada and Australia to shop via its Shorts feature. Next year, the company will begin paying creators 45% of the revenue generated by showing ads between Shorts, the report stated.
“Our goal is to focus on the best monetization opportunities for creators in the market,” Martin, a former Nike executive, told FT.
As PYMNTS reported last week, YouTube has also launched its “From YouTube to You” project, which includes a series of videos, live streams and Shorts that feature popular creators who curate gift suggestions and exclusive product drops and deals.
It’s part of a wider trend of tech companies — not just Google-owned YouTube but also Amazon and Meta — attempting to marry social media and shopping.
“[A]fter a wild year of declining sales and earnings, hiring freezes and other headwinds, social selling is suddenly the growth standout, and maybe even the cure-all that the industry desperately needs,” PYMNTS reported Friday (Nov. 11).
Amazon has joined forces with Snapchat for a partnership that combines Amazon’s massive catalog of assets with Snap’s augmented reality try-on technology. TikTok, meanwhile, debuted its eCommerce program in the U.S. last week, letting users buy items via a program known as TikTok Shop.
This shift is also happening as people spend more time online. According to “The ConnectedEconomy™ Monthly Report: The Who’s Who of the Digital Social Scene Edition,” nearly 20% of U.S. adults now connect with friends, family and romantic partners online as part of their daily routine, up for 15% in December 2021.
For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More