YouTube is adding new shopping features to its short-form video platform, according to a story first reported by the FinancialTimes. Adopting a similar model to social media rivals TikTok and Instagram, Shorts will allow users to shop by scrolling through their feeds.
Scheduled to roll out next year to users in the US, Canada, Australia, Brazil and India, creators will receive a 45% share of ad revenue once the program launches. YouTube has announced plans to expand the program to other countries in the future.
Affiliate marketing program also in the works
In addition to the new shopping features, YouTube plans to introduce an affiliate marketing program to pay select content creators a commission on sales generated from promoting products.
“It’s more of an endorsement model, as opposed to a more traditional ad model or a paid placement model,” said Michael Martin, general manager of YouTube Shopping. FinancialTimes. “Our goal is to focus on the best monetization opportunities for market creators.”
This program is still in pre-testing, but is expected to roll out to more creators in 2023.
Social media platforms looking for new revenue streams
In the wake of the drop in advertising expenditure following the release of iOS 14.5which allowed iPhone users to opt out of tracking, and with fears of an impending economic downturn, many social media sites have been looking for new ways to monetize content, both for themselves and for creators. .
As largely uncharted territory, there have been successes and failures. For example, Facebook has ended its online shopping service earlier this year to put more emphasis on Reels, its short-form video service that directly competes with YouTube Shorts and TikTok. It retained Facebook Live, but eliminated the ability for e-commerce merchants to tag products or create product playlists.
Last week, TikTok rolled out its in-app purchase function in the United States This feature, already available in the United Kingdom and Indonesia, allows users to make purchases without leaving the platform.
TikTok is also build distribution centers in the United States as it strives to capitalize on its more than one billion users worldwide.
Source: The Financial Times
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