For YouTube, the move is a recognition that people are turning
to the Google-owned video service to learn about products they're
considering buying. And they're not just watching makeup tutorials
that YouTube stars like Michelle Phan are posting. YouTube claims
there are more than 1 million channels on the video service focused
on product reviews and that views of product review videos have
increased by 50% year-over-year.
The new TrueView for Shopping ads are also a move to bring more
direct-response dollars to a video service typically viewed by
marketers as a way to raise their brands' profiles but not
necessarily to push product. Last year eMarketer estimated that
59% of the $50 billion U.S. brands funneled into digital
advertising were used for direct-response campaigns that are
designed to get someone to do more than just observe an ad, such as
clicking through to an advertiser's site and buying something. A
Google study from late 2013, "Digital Drives Auto Shopping," found
that
more than half of auto shoppers watch 30 minutes or more of videos
during their shopping journey and one in four watches an hour
or more.
"Having the opportunity to lay additional information on top of
our pre-rolls is huge," said Ben Young, media manager of TV and
online video for home goods retailer Wayfair.
To gauge how huge, Wayfair tested the shoppable TrueView ad
against a standard TrueView ad. Both campaigns targeted the same
audience, but the shoppable one delivered three times more revenue
than the standard spot. "It feels like a huge win," Mr. Young
said.
In addition to YouTube's standard ad-targeting options like
demographics and interests, advertisers will be able to aim their
TrueView for Shopping ads at people who had previously checked out
a product on a brand's site, Mr. Shackleton said. As with any
TrueView card-carrying ad, advertisers will be charged if people
click on any of the product elements or watch the full ad (or at
least 30 seconds of it).
People will still be able to skip an ad after it has played for
five seconds, which is also when a button will appear in the
top-right of the corner of the video player that will display the
card overlays when clicked.
To use TrueView for Shopping ads, brands need to have a Google
Merchant Center account, which has been used by merchants to upload
product information and inventory data to Google's pay-to-play
Shopping service. This is how Google is able to collect and catalog
brands' product listings to populate the TrueView cards. A YouTube
spokeswoman said advertisers who sign up for Merchant Center only
to run TrueView for Shopping ads will not be automatically opted in
to Google Shopping, which requires companies to pay to have their
products listed on the shopping-specific search engine.