The number of short YouTube users has exceeded 1.5 billion monthly users. But despite that, 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 piloting its affiliate marketing system
YouTube recently launched a pilot program in the US to embed product tags in short videos. It will start allowing users to buy products directly from Shorts, YouTube’s short-form video platform, similar to TikTok. Specifically, this feature allows creators to name products from their own stores.
Thus, users in the US, India, Brazil, Canada and Australia can use Shopping Tags and use them to purchase products directly within the YouTube app according to the Financial Times. But YouTube has already announced plans to expand that to more creators and countries in the future.
” [YouTube’s] It’s currently experimenting with “affiliate marketing” – paying a commission to creators who sell products – with a number of creators based in the US. YouTube, the merchant, and the creator each get an undisclosed share of the sale. ”
With short video, the challenge is that you can’t just insert pre-roll and mid-roll ads like you can with longer content, which makes direct monetization difficult. YouTube has already announced a new ad program that displays ads between short videos, sharing a percentage of all revenue generated with content creators based on how well that content performs.
In addition to the new Buy Pants feature, YouTube is also testing an affiliate program in the US. This allows creators to earn commissions by buying recommended products 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 next year.
In fact, next year YouTube announced its share of new features for content creators. They will be able to apply to its affiliate program if they reach a new short film threshold of 1,000 subscribers and 10 million short video views over a 90-day period. They will be able to earn 45% of the 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 already started testing TikTok Shop in the US last week. This is an in-app e-commerce feature to compete with Amazon and other retail giants during the upcoming holiday season. Users can now make purchases directly through the app.
For its part, Instagram, which is owned by Meta, allows creators to share products in live broadcasts and in the Shopping tab. Users can scroll through recommended products and make purchases. In the meantime, brands can make their profiles shoppable through product catalogs.
Up to 60 seconds of original audio on YouTube Shorts
Since good news never comes alone, YouTube has also announced that content on the shorts can accommodate more than 15 seconds of audio at the request of the creators. So now they can use 30-60s of music for most tracks and up to 60 seconds of original audio from short films and video clips. The Volume Limiter will display how much volume you can use from each music or video track (15 seconds, 30 seconds, or 60 seconds). This update is being rolled out gradually starting November 15, 2022.