YouTube is making moves to compete with TikTok’s growing e-commerce presence by expanding its partnership with Shopify. The announcement on Tuesday revealed that YouTube is onboarding more brands for its YouTube Shopping affiliate program, allowing creators access to thousands of new brands to tag in their shopping videos. This is a significant increase from the few hundred brands they currently have access to.
The expanded partnership enables all eligible Shopify Plus and Advanced merchants in the U.S. to sign up for the Shopping affiliate program. This move not only benefits creators by providing them with a way to earn money through their videos but also helps brands reach customers and increase sales.
The timing of this expansion is crucial as TikTok is reportedly aiming to grow its TikTok Shop U.S. business tenfold to $17.5 billion this year. While TikTok may be newer to the U.S. e-commerce space compared to YouTube, it has been rapidly onboarding merchants. In fact, TikTok reported having 500,000 merchants in the U.S. on TikTok Shop by the end of 2023.
To further support creators in the affiliate program, YouTube is launching a new Chrome extension. This extension allows U.S. creators to save products while browsing a brand or retailer’s site, making it easier for them to find and tag the products in their videos when they’re ready.
YouTube’s focus on e-commerce is a strategic move to generate additional revenue amid a slowdown in digital advertising. The platform’s efforts have proven successful, with over 30 billion hours of shopping-related videos watched on YouTube in 2023. Additionally, videos that assist viewers in shopping experienced a 25% increase in watch time.
The expansion of the YouTube Shopping affiliate program not only benefits the platform and brands but also creators who are looking to earn more money through their content. YouTube’s recent launch of new Shopping features aims to help creators market products effectively and grow their earnings.
In conclusion, YouTube’s expanded partnership with Shopify demonstrates its commitment to e-commerce and its desire to compete with TikTok’s growing presence in the space. By offering creators access to a wider range of brands and providing tools to simplify the process, YouTube aims to attract more creators to its platform and increase revenue through affiliate marketing.
