Creators expect increase in income after YouTube allows them to place third-party product links in their videos

Earlier, YouTubers could use only affiliate links for their own merchandise or business in the video as a part of the YouTube Shopping programme. The YouTube Shopping affiliate was rolled out in India on Friday. This programme has been launched in the US, South Korea, Indonesia, Thailand and Vietnam.

“The incredible global success of YouTube Shopping, with over 30 billion hours of shopping-related content watched in 2023 alone, demonstrates the power of connecting creators, viewers, and brands in exciting new ways. We’re now bringing this same momentum to India," Travis Katz, general manager and vice president of shopping at YouTube, said in a press statement.

Individual creators with over 10,000 subscribers who have not turned on the made-for-kids setting are eligible for this programme. As of now, only links of e-commerce platform Flipkart and its fashion subsidiary Myntra can be integrated.

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Initially, the creators will earn the entire commission and won't have to share it with the platform until such a model is worked out and announced.

"This would reduce the extra steps our viewers had to go through to buy recommended products from links in our bio. I can see a wave of brand deals coming our way," said Vendy Yaduvanshi, a creator with 14.3 million subscribers on YouTube.

A matter of trust

He added that there is massive potential to scale this up in the beauty and fashion category and in low and mid-range products.

"Products ranging between ₹500 and ₹700, like perfumes, shampoos and moisturizers, would drive the most sales," he said, explaining that this price range did well with viewers who purchased products from his affiliated store Vendy Ventures, which sells handcrafted footwear.

Over 110,000 channels in India had more than 100,000 subscribers as of December 2023, exemplifying the trust and authenticity fostered by YouTube’s diverse creator ecosystem, according to a report.

Over 65% of the consumers in India trust YouTube creators more than traditional celebrities, driving purchase decisions through authentic connection, Google, Temasek and Bain & Company said in the report titled India e-Conomy Report 2023.

“As a homegrown brand, with more than 500 million registered customers, Flipkart and Myntra understand the evolving and nuanced shopping needs of a diverse customer base," Ravi Iyer, senior vice president and head-corporate development and strategic partnerships, Flipkart Group, said in a press release, commenting on its efforts to enhance social and video commerce.

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“To make shopping engaging and personalized and empower customers to make informed purchase decisions, we have pioneered video commerce on our platforms, covering a variety of categories, including fashion, beauty, personal care, home furnishing and more, with strong engagement with customers across tier-2 and -3 cities," he added.

There is also optimism in the sector about the growth of an entire category of influencers based on product discovery-related content.

Potential for creators

“This is a great earning opportunity for creators, and I am excited to see how this plays out. This can provide an opportunity for the rise of influencers creating product discovery-related content like Flipkart finds and Myntra finds," said Shubham Singhal, founder of Dot Media, a content-first talent marketing agency working with 200 influencers.

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Consumers generally welcomed the move but were wary of an overload of endorsements that could come their way.

“It’s not a bad idea, but it can be overwhelming if the creator promotes a lot of products at the same time," said Pooja Bhagwat, a Mumbai-based professional.

Katz told reporters it is up to the creators to balance content creation with brand collaborations so that they don’t come out as very commercially driven.