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Google's YouTube to Make its Videos More "Shoppable"

GoogleGOOGL -owned video website YouTube unveiled a new advertising unit named Shopping ads in a bid to make its videos more "shoppable".

YouTube will now show shopping ads during product review videos that take users to the merchant website to complete the sale. The new format will be released for test this fall and will see a wider launch in the coming months.

YouTube already allows advertisers to display links to items within their own video clips. The new offering will let advertisers have a click-to-buy ad within partner videos on YouTube.

It is built up from YouTube's Cards product for advertisers, which includes further information on products mentioned in the videos as well as related products. YouTube added the TrueView concept to this, calling it TrueView for shopping, which means that advertisers don't need to pay for these ads until customers click on them.

The shopping ads will appear as a little "i" icon at the upper right corner of product review videos. A single click on the icon will bring up related Cards allowing viewers to scroll down images and pricing of the products featured in the video. Clicking on any of the cards takes users to the retailer's website.

But this is different from Google's "Buy Button". While the Buy button enables users to buy directly through Google Search results, these ads will only connect the user to the product or brand's website.

As per YouTube, viewership of product review videos has grown 40% over the past year. Therefore, with the launch, it wants to capitalize on the growing popularity of product reviews and tutorials. This ostensibly improves targeting because the ads will be contextually matched with the activity in progress (so there is likely to be greater intention to buy), the habits of the user and the device (mobile or desktop) being used.

Google has a Zacks Rank #2 (Buy). Better-ranked stocks in the technology space include Travelport Worldwide Limited TVPT , Stamps.com Inc. STMP and Majesco Entertainment Co. COOL , all sporting a Zacks Rank #1 (Strong Buy).

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MAJESCO ENTMNT (COOL): Free Stock Analysis Report

STAMPS.COM INC (STMP): Free Stock Analysis Report

GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report

TRAVELPORT WWD (TVPT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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