YouTube Expanding eCommerce Program That Allows Viewers to Click on Ads

01/22/2009

YouTube is literally pushing its way into eCommerce. Its latest push is its expansion of "click-to-buy" ads. These are ads viewers can click on to buy content when they’re watching a YouTube video, for example.

The initial rollout of this program was last fall in the U.S. and the U.K. Now, it’s expanding to Europe, specifically Germany, Spain and the Netherlands. Via embedded links from popular sites like Amazon and iTunes, users will be able to purchase all kinds of products.

As proof of how well it works, a YouTube exec said that click-to-buy ads had boosted sales of Monty Python DVDs by a whopping 23,000 percent. It reached the number two spot on Amazon's Movies and TV bestsellers list. And, the world-renown comedy troupe only launched a YouTube channel last November.

Talk about climbing the charts!

On its blog, the company went on to point out that this is exactly the kind of success story that illustrates how exceptional content can tremendously boost eCommerce sales. While currently limited to music, DVDs and video games, the forward-thinking company noted it will soon roll the program out to “embrace” other kinds of products. The company has not yet revealed what other products will be included.

YouTube is still experimenting with how links are displayed. Another fly in this ointment may be that it’s still struggling with how to monetize its vast inventory of video.

Experts predict that other social networking sites will follow YouTube’s lead by also expanding their eCommerce initiatives. This is entirely feasible, especially considering the economy and how “recession-resistant” online advertising – in certain mediums – is proving to be.

Certain social networking sites have already started eCommerce programs, i.e., Facebook, with its virtual gift program. The company is already generating revenues upwards of $40 million per year with this program.

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