To diversify revenue creation beyond ads, Google looks to turning YouTube into an ecommerce hub

New Ideas in MarketingEssential news for marketers, summarised by YouGov
October 12, 2020, 2:33 AM UTC

This could benefit YouTube from the new data it collects from the videos.

Google is planning to convert YouTube into a major ecommerce hub. While how YouTube will generate revenue from the sales made is unclear, YouTube is currently testing features and offering subscription services for creators and will take a 30% cut from those payments.

Further, with “social commerce” being “bullish”, as per a recent RBC Capital survey, the article states Google wants to seize the opportunity to sell on social networks. The search engine recently revamped its e-commerce and payments divisions and announced plans to incorporate Shopify with its online storefront.

Merchandising on YouTube is one of the several strategies used by Google to expand creator revenue beyond ads. Google’s CEO Sundar Pichai said “unboxing” videos could be leveraged for sales.

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