Google sees potential to earn big bucks by making a change to YouTube
Google plans to turn YouTube into a shopping mall.
Google has confirmed that it is testing this new shopping with a limited number of videos. Content creators are able to decide which products are listed for sale in their videos. While Google prefers to sell ads over products, others have successfully increased their revenue by becoming e-commerce leaders. Andy Ellwood, president of eCommerce Startup Basket, says: “YouTube is one of the least used assets. “If they decide to invest in it, it’s a great opportunity for them.” It is not clear how Google plans to take advantage of this opportunity. Designers no longer rely on ads to put them on the bread table. In fact, Google is helping YouTube creators sell subscriptions to their content, and is cutting back on Google by 30%.
According to Bloomberg Intelligence, the retail e-commerce market, not including China, could reach $ 2.8 trillion by 2025. Jitendra Varal, an analyst at Bloomberg Intelligence, points out that “Facebook is at the forefront of this game, but because of the size of the e-commerce market and its future growth, it is too large to keep up.” And YouTube is poised to play an important role in the company’s strategy.
In a recent earnings call, CEO Sunder Pichai said that boxing videos on YouTube could be turned into a shopping opportunity. In China, the country version of Tiktok, also known as Doin, was successful in using videos as a shopping directory. Millions of users bought smartphones, lipsticks and many other products with videos promoting these items.
Last year, Google launched the aforementioned Shopify integration, allowing YouTube creators to list up to 12 items for sale in a carousel below their videos. In addition to helping designers diversify beyond advertising, Google may use data collected from merchandise to enhance its advertising campaign.