YouTube Shorts surpasses 1.5 billion monthly users. But despite this, YouTube’s quarterly ad revenue fell 1.9% year-over-year, according to Alphabet’s quarterly report released last month. YouTube likely sees the new shopping features as a way to expand its revenue streams in a shrinking ad market…
YouTube is piloting its affiliate marketing system
YouTube recently launched a pilot program in the United States to embed product tags in short videos. It will begin allowing users to purchase products directly from Shorts, YouTube’s short form video platform, similar to TikTok. In particular, this feature allows creators to label products from their own stores.
Thus, users in the United States, India, Brazil, Canada and Australia can use Shopping Tags and use them to buy products directly in the YouTube app according to The Financial Times. But YouTube has already announced plans to expand it to more creators and countries in the future.
The media explained:
” [YouTube’s] It is currently piloting its “affiliate marketing” system – paying commission to creators who sell products – with several US-based creators. YouTube, the merchant, and the creator all take an undisclosed portion of the sale. ”
With short video, the challenge is that you can’t just place pre and mid-roll ads like you would with longer content, which makes direct monetization difficult. YouTube has announced a new ad program that shows ads between short videos, with a percentage of all revenue shared with creators based on how well that content performs.
In addition to the new Buy Shorts feature, YouTube is also experimenting with an affiliate program in the United States. It allows creators to earn commissions by purchasing products recommended in their short videos and regular videos. Testing is still in its early stages, but the company plans to gradually expand the experience to more creators over the next year.
In fact, for next year, YouTube has already announced its share of new features for creators. They will be able to apply for its partnership program if they reach a new short film-specific threshold of 1,000 subscribers and 10 million short video views within 90 days. They will be able to earn 45% of advertising revenue from their videos.
YouTube isn’t the only digital giant betting on the future of shopping. TikTok and Meta have also invested in this medium. TikTok did start testing the TikTok Shop in the United States last week. This is an in-app e-commerce feature to compete with Amazon and other retail giants in the upcoming holiday season. Users can now purchase directly through the application.
For its part, Instagram, owned by Meta, allows creators to share products on live streams and in its shopping tab. Users can scroll through recommended products and make a purchase. Brands, meanwhile, can make their profiles marketable through product catalogs.
Up to 60s of original audio on YouTube Shorts
Because the good news isn’t the only one, YouTube also announced that it can accept content in Shorts of more than 15 seconds of audio at the request of creators. So now they can use 30-60s of music for most tracks and up to 60s of original audio from short films and videos. The audio selector will show the amount of audio you can use from each music or video track (15s, 30s or 60s). This update is rolling out gradually starting November 15, 2022.