Online videos have become a go-to source for entertainment and also self-learning. It is no wonder advertisers are flooding online video platforms such as YouTube for a piece of the potential target audience in this era of digitization. With five billion videos viewed every day on YouTube, the video platform is starting to shape consumer’s behavior in making online purchases.
YouTube’s algorithm that is working in the background has the ability to collect substantial information about their user’s interest. According to research by Tubular Insights, 26% of consumers turn to YouTube for shopping inspiration. A data released by YouTube found that people in the United States are spending nearly twice as much time watching fashion and apparel videos this year as compared to the previous year.
As we become more connected and trade between e-commerce becomes more intense, 64% of consumers use YouTube as a source to review electronic products before purchasing. Factors such as customer testimonials or reviews help consumers to be more confident with their purchases as compared to the traditional point of sale.
Additionally, YouTube ads drive increases in a consumer’s journey with 35% of advertising campaigns reporting a lift in purchase intentions. This behavior usually takes place after consumers spent hours watching multiple videos and would have received a substantial amount of information about the product. These numbers further assure the effectiveness of YouTube to provide beyond entertainment, but also as a platform for advertisers to influence consumer’s purchasing behavior.