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Youtube Introduces a New Shoppable Ad Format

Youtube announced a new direct response ad format that will make Youtube ads more “shoppable”.

The new shoppable format adds a browsable product image underneath the ad to drive traffic directly to brands’ product pages. The introduction of this new format should bring YouTube back into the so-called “social commerce” game.

Advertisers are trying to find new ways to capture consumers’ growth in e-commerce shopping, amid the pandemic that kept people from shopping at brick-and-mortar physical stores for fear of infection.

While social ads remain difficult to achieve, these new browsable and shoppable ads could help YouTube catch up on the likes of Instagram and Pinterest which have become household platforms for e-commerce.

Given that 70% of people claim they have made a purchase after they saw a product in a YouTube video, this new ad product could change the game forever.

To use the new shoppable format, brands will first need to sync their Google  Merchant Center feed with their video ads. They can then visually expand an ad’s “call to action” button with the best-selling products it wants to feature in the ad in order to generate traffic that sends viewers directly to the product listing on the brand’s own website.

Aerie, an intimate apparel and lifestyle retailer owned by American Eagle Outfitters, was among early testers for the new ad format. The brand wanted to boost consumer’s love for its brand and increase its sales for its Spring 2020 collection. Aerie ran targeted ads on YouTube using the new shoppable ad format and saw a 25% higher return on ad spend than the prior year as well as 9 times more conversions than with their traditional ad mix.