“Lots of potential”: Is live shopping the next frontier for YouTube?
Staking its claim in the burgeoning social commerce space, Google-owned YouTube has launched its first dedicated ‘shopping channel’ in South Korea.
The channel, which launched on June 30, will be live for 90 days, during which time YouTube will test a shoppable livestream environment for local businesses.
“YouTube is committed to building an engaging, informative and entertaining shopping experience for all users, including in Korea,” a YouTube spokesperson told Yonhap.
“To do this, we may experiment with a variety of YouTube Shopping features from time to time as we continue to work hard to optimise and deliver the best experience for our users.”
Social commerce is already popular in South Korea, with the country’s live commerce market projected to grow to 10 trillion won (AU$11.4 billion) this year, from 2.8 trillion won in 2021.
Live shopping is also much more developed in parts of Asia compared to other parts of the world, with China’s live shopping market predicted to be worth $1.07 billion (US$720 billion) in 2023, according to business software consultancy Capterra.
The US market, by comparison, is expected to reach $85 billion (US$57 billion) by 2025, and Australia is even earlier in its journey.
YouTube isn’t the only social media stepping up its shopping capabilities. Short-form video platform TikTok is reportedly launching a dedicated e-commerce function through its US site, which will see TikTok itself source and sell products, rather than providing a platform for brands to utilise, according to Semafor.
TikTok has previously launched live shopping capabilities across a number of its markets, though the format has struggled in Western countries.
Aaron Whitlock, co-founder of online only mens wellness brand Cassius, told Inside Retail that the concept is enticing for brands, as YouTube already has over two billion active users each month.
“It’s exciting for all e-commerce businesses,” Whitlock said.
“The huge user base of YouTube and the platform’s highly engaging content offer a compelling backdrop. Live shopping, while highly popular in places like China, isn’t yet a significant trend in Australia, so it will be interesting to see how YouTube develops this market and we can capitalise on it.”
Find the format
Creating engaging live shopping content is also a different beast compared to traditional marketing, with brands able to communicate directly and in real time with an audience through this channel. .
According to Whitlock, there are two ways to present a brands’ products in such a format: How-to content, and an ‘infomercial’.
Brands could host a ‘morning show’ style livestream, where its hosts showcase different products, talk through their features, and engage with customers via a live chat function. This infomercial-style approach has been tried and tested on TV for years, and would be easy to translate to live platforms.
Alternatively, how-to content would allow brands to engage more specifically with how its product is used. According to Whitlock, this could involve showing recipes, workout routines, or wellness and weight loss tips, depending on the brand involved.
“This kind of content could be shot anywhere, from a studio or an iPhone, which offers both flexibility and authenticity,” Whitlock said.
“Involving influencers in these videos could further boost engagement and credibility.”
What’s next?
Following the 90 day trial period, it’s still unclear what YouTube’s next move would be. However, during parent company Alphabet’s fourth quarter earnings call, chief business officer Philipp Schindler said the business is focusing on becoming more ‘shoppable’ moving forward.
“It’s still nascent, but we see lots of potential [in] making it easier for people to shop from the creators, brands and content they love,” Schindler said.
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