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| YouTube begins testing purchases in shorts |
YouTube has begun adding buying capabilities to its short-form video service to offset slowing digital ad revenue growth.
The new Shopping feature allows users to purchase products while scrolling through the shorts. The company has begun offering the Shorts Store feature to qualified American designers who are currently experimenting with selling the products in their own stores.
Viewers in the US, India, Brazil, Canada and Australia can view price tags and shop through the short video service.
YouTube plans to continue allowing more creators and countries to feature their wares on the platform.
YouTube operates an affiliate commercial program in the United States that allows creators to earn commissions by purchasing products featured in their short videos.
The company says testing is still in its early stages and plans to gradually expand the experience to more developers over the next year.
"We truly believe that YouTube is the best place for developers to grow their businesses, and Shop is one of them," a YouTube spokesperson told TechCrunch in a post.
YouTube is trying to compensate for advertising losses with shorts
A few weeks ago, YouTube announced that content creators will receive 45% more ad revenue from next year.
When the developers reach the new short video limit of 1,000 subscribers and 10 million views in 90 days in early 2023, they can apply to join the company's affiliate program, after which they will receive 45% of the advertising revenue. of their videos. .
Despite that success, YouTube's quarterly ad revenue fell 1.9% year over year, missing expectations, according to Alphabet's quarterly earnings report last month.
YouTube may see the new Shopping feature as a way to expand its revenue stream in a declining ad market.
In recent years, YouTube has been working to transform its platform into a shopping destination, launching products such as buyable ads and the ability to shop directly through creator-hosted livestreams. Given these moves, it also makes sense that YouTube would offer short buys.
It's worth noting that YouTube isn't the only digital giant betting on the future of shopping, as Tik Tok and Meta are also investing in the space.
Last week, TikTok quietly began testing the TikTok Shop feature in the US. This feature allows users to purchase products directly from the app. Prior to this expansion, the feature was only available in the United Kingdom and parts of Southeast Asia.
Earlier this year, the company also partnered with Shopify to launch the TikTok shopping experience in the US, UK and Canada.
Instagram's owned Meta service allows creators to share products directly and in a "shop" tab that allows users to scroll through recommended products and make purchases. Brands can also make profiles a place to purchase product catalogs.