(Image Source: TechCrunch)
YouTube recently revealed its plan for a new interactive feature called brand extension, which makes the platform more shoppable.
With just one click of a button, TV viewers are now able to send website advertising links and other calls-to-action right to the phone, without interrupting the current video. It enables viewers to conveniently browse products, consult promotion programs, read product information, and even complete the purchasing process while watching Youtube, without having to stop the video.
Advertisers can also target consumers more accurately based on the type of video content. For instance, fitness content may display a brand extension ad featuring fitness-related items. The conversion rate of these brand extensions will be shown directly in Google Ads.
Online shoppers, especially Gen-Z, prefer to engage with new products in an interactive way such as through videos and livestreams. This preference has led to the emergence of video shopping services like Popshop Live, NTWRK, ShopShops, TalkShopLive, Bambuser, and others. Social media giants like Facebook also invested in live shopping and video-based shopping across Facebook and Instagram. Meanwhile, TikTok has taken the lead to become the go-to platform for video-based e-commerce, with Walmart hosting many shopping livestreams on TikTok lately.
However, YouTube possesses great potential for video shopping as it represents 40% of watch time of all ad-supported streaming services, according to Comscore data. Of the top 5 streaming services in the U.S. that make up 80% of the connected TV market, only 2 are ad-supported.
Brand extensions, which will be launched globally later this year, are only one of many interactive features that the company has in store to expand into e-commerce. Earlier this year, YouTube also tested another tool that allows its creators to tag and track the products they were featuring.