YouTube is working on a new feature for creators to tag products displayed in their videos. The move might lead to more direct shopping on the platform.
“[YouTube] recently started asking creators to use YouTube software to tag and track products featured in their clips. […] The goal is to convert YouTube’s bounty of videos into a vast catalog of items that viewers can peruse, click on and buy directly, according to people familiar with the situation. The company is also testing a new integration with Shopify Inc. for selling items through YouTube,” reported Bloomberg.
YouTube has ventured into ecommerce before. The service added in 2018 a shelf for product links so creators could display their branded products under their videos.
It also added alerts for livestreams this year to help creators boost awareness of their products. And it also added AR try-on clips for makeup tutorials and other ecommerce tools. It opened another opportunity for creators to generate revenue from their content.
Product tagging within videos is another level. YouTube will select specific items in a video frame. And users can tap on as the clip plays to get more information about that product.
Every platform is leaning towards it. For instance, TikTok wants to establish its revenue generation to ensure creators are paid. It started testing product links on its videos last year.
— Fabian (Bern) Ouwehand 法比安 (@iamfabianbern) November 14, 2019
TikTok’s Chinese version Douyin has seen significant monetization success via ecommerce additions in the app.
Douyin last year made over $122 million in revenue. Most of it came from ecommerce, and it was twice what TikTok made in 2019.
With Walmart part of the consortium seeking to buy into the platform, TikTok has its eye to expand its ecommerce goals. It seems obvious that the next step to broaden video monetization will focus on in-stream buying. It will provide a means for viewers to shop for the items displayed in these videos.
Instagram also intends to add shopping options in Reels videos soon.
All things considered, it’s unsurprising why YouTube wants to move forward in this respect. But YouTube’s venture will be more than simply adding a shopping button overlaid onto the video.Bottom of Form
YouTube will “tag and track” products within videos. It may lead to a new habit where users will accustom to tap on any product they see in a clip for more details.
How YouTube will make this work is unclear. It seems like the online streaming service is taking a more advanced approach to video ecommerce. It aims to add more revenue generation options for creators, as they add more items in their clips. And it will add advertising opportunities for brands, tapping onto YouTubers with huge followings to showcase their products.