YouTube Ads for Ecommerce

Is YouTube A Profitable Platform For e-Commerce?

If you are managing an eCommerce brand, you should have several strategic digital marketing channels up your sleeves. The fast-paced technological advancements have forced businesses to be agile when it comes to innovation and adapting to trends. More and more companies are forced to pivot in the digital space, even if the transition is quite daunting. Traditional methods have slowly become irrelevant, and nobody wants to be left antiquated. Business owners are making sure that they are not just surviving but thriving in the online setting, scaling up and increasing their revenue. 

YouTube is one of the most profitable platforms when it comes to advertising products and services. Google CEO Sundar Pichai recommended that product unboxing videos on the platform could be the perfect shopping opportunity for viewers. There are also tutorials, short series, and info ads that advertise commercial products. The site has already tested Shopify integrations for eCommerce brands.

I talked to Shash Singh, CEO of Linx Digital Agency, a digital marketing company that helps eCommerce and info product businesses scale to 8 figures with YouTube advertising. He mentioned that the most common misconception is that YouTube advertising is only for coaches and info ads since the platform requires so much creativity for product videos to sell. However this is not the case, some eCommerce businesses have seen excellent results. Shash added that the site could work for direct response e-commerce to strengthen branding, increase sales in profitable acquisition cost, and boost credibility, which helps dominate the industry. 

In this episode, we will talk about:

  • What type of videos does it take to pull off ecommerce advertising on YouTube
  • How to effectively advertise on YouTube
  • How to target the right audience on YouTube

YouTube works

Since the platform is seller-friendly, it works well with high ticket products. Although the clicks are more expensive, the quality is high. That is why YouTube advertising is great for eCommerce companies who want to generate a reasonable conversion rate. The site is perfect for companies selling products that solve a pain point rather than those that are curiosity-based. However, slideshow kinds of ads don’t work well on YouTube because the platform entails a human element and a grasp of how human psychology influences the viewers’ purchase decisions. Shash recommended that eCommerce companies need to create compelling videos that engage their audience to achieve their desired metrics.

How to advertise on YouTube

Shash suggested taking footage of the products and combining them with a voice-over and following a specific structure. In addition, a strong 5-10 sec intro helps catch the audience’s attention. Since credibility is essential in establishing your brand in your industry, it is necessary to highlight products and their benefits. A solid call to action is vital to increase conversion achieved by showcasing client testimonials and creating social proof. Shash recommends that to be successful in YouTube advertising, analyzing eCommerce products that are performing well on the platform is a must. 

How to do smart targeting on YouTube

Shash explains that to have an impressive click-through rate (CTR) and cost per add to cart, strategic audience targeting is vital, this includes creating Custom Audiences. He deep dives into audiences in the episode and is a must hear if you’ve ever been interested in marketing on YouTube. Great insights into audience targeting, remarketing and the best tools to do it with.

Shash stressed that YouTube isn’t beginner-friendly and that using Facebook as a starting point is the best way for eCommerce startups or small businesses to get started in advertising. Success in YouTube advertising is attributed to product evaluation. He said that to increase sales, marketing must first be tested on Facebook and scaled on YouTube.

If you want help to grow your eCommerce business, YellowFin Digital, a Corpus Christi-based marketing company, is committed to assist you in building your brand from the ground up with our integrated results-driven sales and marketing strategies. Contact us for a free quote.


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