What the Worldwide Rollout of YouTube’s Newest Ad Format Means for Marketers

Direct response allows for browsable product images.

The Covid-19 pandemic has resulted in a sharper shift to digital commerce as more and more buyers are choosing to forego a visit to a brick-and-mortar store and ordering online. With large number of retail stores grappling with closures for now almost a record length of time and reopenings happening slowly, this is also the time for brands to revisit their media strategy to zoom in more on digital sales. Google-owned YouTube isn’t off-target to believe that the present times offer a unique opportunity for videos to inspire viewers’ online & offline actions, particularly “where 70 percent of people say they bought a brand as a result of seeing it on our (YouTube) platform.” Which is why YouTube recently launchedOpens a new window a new ad format called ‘Direct Response’ that promises to be a cost-efficient and simple way to drive demand and conversions at the same time.

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The Direct Response ad format serves to make YouTubeOpens a new window ads more shoppable by adding browsable product imagery, which directly link from the video to a brand’s specific product/offering page. This is unlike tool-enabled storefronts on Instagram and FacebookOpens a new window that lets shoppers buy from various brands but within the confines of the InstagramOpens a new window or Facebook app. According to Nicky Rettke, director of product management at YouTube Ads, “That’s why we’ve invested heavily to introduce effective video solutions that drive action…Today, we’re making it even easier for you to inspire people to take action on YouTube with smarter solutions that make video more shoppable, use automation to drive conversions, and help you better understand attribution.” Remarking on how the new ad format complements the ad with browsable product images, she adds, “All you need to do is sync your Google Merchant Center feed to your video ads, and you can visually expand your call-to-action button with the best-sellers you want to feature and drive traffic to the product pages that matter.”

The newly unveiled ad format has already spelled success for tester brands like Jeep and Aerie. “Recently, Aerie needed to simultaneously drive brand love and omnichannel apparel sales for their 2020 spring campaign. They used YouTube as a full funnel solution and connected with audiences with the highest likelihood to purchase. As a result, Aerie saw strong engagement for their brand and achieved a 25 percent higher return on ad spend than the previous year—with nine times more conversions compared to their traditional media mix”, YouTube states.

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To help marketers decode where their conversions are coming from and offer more clarity around buyer’s route to purchase, Google has also added YouTube in their Google Ads attribution reports. This is just a start of an online retail revolution. The video ad industry is experiencing an intense shakeup in the wake of coronavirus crisis and refinement of more innovative ad formats are just round the corner with players like SnapchatOpens a new window , Instagram, Facebook, and YouTube leading the brigade.