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Shop More via Ads in YouTube shorts and Expand Affiliate Marketing

Get ready the shopping enthusiasts. There is some good news for you.

According to a story first reported by the Financial Times, YouTube is expanding its short-form video platform with new commerce options. Shorts would let users make purchases as they browse through their feeds, adopting a format akin to that of social media competitors TikTok and Instagram.

With eligible American creators who are now testing the ability to tag items from their businesses. The firm is beginning to roll out shopping options on ads in YouTube Shorts. The initiative is anticipated to start sometime next year for users in the United States, Canada, Australia, Brazil, and India. In the long term, YouTube intends to continue expanding the accessibility of tagging to more creators and countries.

YouTube Revenue:

The announcement was made shortly after YouTube said that starting in 2019, creators will receive a 45% cut of ads in YouTube shorts revenue. If they reach a new Shorts-specific barrier of 1,000 subscribers and 10 million Shorts views over 90 days, creators will be allowed to apply to the YouTube Referral Program in early 2023. After that point, they will get 45% of the Instagram Shopping ads income from their films.

The number of monthly viewers of YouTube’s Shorts has surpassed 1.5 billion. Yet, despite this achievement, YouTube’s quarterly ad income fell short of expectations and fell 1.9% year over year, according to Alphabet’s quarterly earnings report published last month. With the declining advertising business, YouTube undoubtedly sees the new retail options as a means to diversify its revenue sources.

Following the introduction of YouTube shoppable ads in 2020 and the start of live stream shopping in 2021, this is the most recent step taken by the video-sharing network to establish itself as an ecommerce destination.

Affiliate Marketing Program Also in The Works:

In addition to the purchasing options, YouTube is testing an YouTube affiliate program in the US that enables creators to get paid when users buy the things they promote in their regular videos and shorts. The business claims that the project is still in its early stages and hopes to include more creators in the study starting in 2019 gradually.

YouTube aims to create the YouTube affiliate marketing scheme to pay selected content producers a percentage on sales produced by product advertising in addition to the new YouTube shopping ads options.

“It is very much an endorsement model versus a more traditional advertising or paid-placement model,” Michael Martin, YouTube’s Shopping General Manager, told the Financial Times. “Our goal is to focus on the best monetization opportunities for creators in the market.”

Although it is currently in the early testing stages, the initiative is anticipated to expand to more creators in 2023.

Social Media Platforms Seeking New Sources of Revenue:

YouTube is not only the digital giant to bring the shopping features. In this queue, TikTok and Meta are found who have made the investment in such space.

Many social media platforms have been looking for new strategies to commercialize content for themselves and authors in the aftermath of decreasing ad investment with the introduction of iOS 14.5, which let iPhone users opt out of tracking.

There have been successes and failures in this mainly unknown terrain. To focus more on Reels, its short-form video service that directly competes with YouTube Shorts and TikTok, Facebook, for instance, shut down its live shopping service earlier this year. The option for ecommerce sellers to categorize items or make product playlists was removed, but Facebook Live was preserved.


In the US, TikTok secretly started testing TikTok in-Shopping option in last week. Users may purchase goods straight from the TikTok Shop app. The functionality was formerly restricted to the United Kingdom and some regions of Southeast Asia. In collaboration with Shopify, the business also started testing TikTok Shopping earlier this year in the US, UK, and Canada. Users may make purchases without leaving the platform in Malaysia, Singapore, and Indonesia.

To make the most of its more than 1 billion users globally, TikTok is now developing fulfilment centres in the United States.


Instagram, owned by Meta, allows producers to post products during live streams and in the shopping section. Here customers can browse suggested items and make purchases. Additionally, brands can make their profiles accessible through product catalogues.

In the light of this report, YouTube’s new shopping features are a great opportunity for businesses and creators who use the platform. You can boost your sales and earn more commissions by taking advantage of these features. With these new shopping features, it’s easier than ever for increasing viewers to find and purchase products they see in your videos.

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