YouTube has transformed from being a basic video-sharing site to an online shopping site as well.
YouTube, a subsidiary of Google, was originally designed to be a video-sharing site back in 2005 where users can freely upload, view and share videos using the Adobe Flash and HTML5 technology. Users can either upload video clips, movie clips, TV clips or music videos or video blogs to educate other people.
Google recently announced that users no longer go to YouTube for just for entertainment and education; they are also using it to shop.
According to the United States Commerce Department (USCD), online sales alone generated around $194.3 billion in 2011 which is 16.1 percent higher from 2010. This had driven a significant change on the advertising industry since a new medium emerged- social media.
Amazon.com seems to have a new competition now as YouTube have joined the trend of using videos to sell products. The site is giving the brands a chance to endorse their products to more than 1 billion active monthly users in over 53 countries. Brands can now create short videos to guide users on purchasing the product online.
The first company to partner with Google was Unilever, a multinational consumer goods company that has over 400 brands, promoting their brand TRESemmé. It is a hair care product used by salons from the U.S, Canada and U.K.
The TRESemmé channel now has 4,920 subscribers with almost 3 million views on their 30 uploaded videos combined. Its most popular video- The “TRESemmé How-To Teaser” uploaded 2 years ago have 930, 340 views to date. Annabel Granger, TRESemmé brand manager at Unilever UK, said “we have achieved a growing sales rate of 13.7% year-on- year”.
YouTube users are free to watch how-to videos, check availability, prices and buy the product which is very convenient and gives them a more positive shopping experience. Interested retailers can contact Google and discuss the premium offering to avail this new channel.
