YouTube viewers around the world spend a total of 35 billion hours watching shopping-related videos each year. In Korea, the 'YouTube Shopping Affiliate Program' was launched in June last year. Coupang is participating as a partner, and starting this year, it will actively expand partnerships and attract various brands and small businesses.
Travis Katz, institutional sector head and vice president of YouTube Shopping, noted in an interview with ChosunBiz at the Google Korea office in Yeoksam-dong, Seoul, on the 17th, that "Shopping is a core part of the YouTube experience and plays an important role in discovering new products and making purchase decisions."
Katz became the institutional sector head and vice president of YouTube Shopping in August last year. He founded the travel platform 'Trip.com' in 2010 and sold it to CTrip in 2017. In addition, he has served as CEO or vice president at various companies, including the social networking service 'MySpace', the flight search engine 'Skyscanner', and the electric vehicle manufacturer 'BrightDrop' under General Motors.
◇ YouTube Shopping Affiliate Program launched in Korea following the U.S.
Korea is the first country outside of the U.S. to introduce the 'YouTube Shopping Affiliate Program'. YouTube established a shopping partnership with CJ OnStyle starting in 2022 to enter the domestic commerce market. At that time, the collaboration was limited to live streaming, but last June, the introduction of the affiliate program significantly expanded shopping features. Creators that meet the eligibility criteria can introduce various products sold by Coupang, the affiliate partner, by tagging them in their content through a simple registration process. Viewers can click on the tags to purchase products, and creators receive commissions for this.
If creators have their own brands, they can also set up dedicated stores for YouTube Shopping. This was jointly developed with the domestic e-commerce platform Cafe24. In this case, creators can tag their products on their YouTube channels as well as use the 'send a product' feature to tag products in the content of other collaborating creators.
Katz explained, "Korean consumers are accustomed to purchasing items online. E-commerce is a large part of the culture. The same goes for video commerce. It was natural to launch the affiliate program first in Korea." He added, "As of March, there are more than 25,000 creators participating in YouTube Shopping in Korea. The number of videos with tagged products has exceeded 950,000 since the launch of the affiliate program."
Katz emphasized that the reason the affiliate program has achieved more than expected results is that YouTube is a platform based on trust between creators and viewers. According to the market research firm Ipsos, users reportedly trust the recommendations of YouTube creators 98% more than those from creators on other social platforms like Instagram or TikTok. Seventy-three percent of Korean viewers said they receive help in making purchasing decisions through YouTube, with the figure reaching 87% among Generation Z viewers.
Katz stated, "YouTube creators have built trust with their viewers over extended periods, and the creators value this relationship. They carefully consider how to utilize shopping features to avoid making their channels appear overly commercial or like they are promoting products. This is a distinction from other platforms and will become a core strength of YouTube in the long term."
◇ “We will allow all products to be purchased on YouTube.”
When viewers click on tagged products in a creator's video, they will be directed to Coupang or the seller's store, rather than placing an order and payment within YouTube. Katz noted, "We plan to allow viewers to complete purchases on YouTube in a pop-up form for convenience, but there are no plans for YouTube to handle payments directly."
Katz also revealed plans to actively utilize Google's artificial intelligence (AI) technology to enhance the shopping experience. Unlike in entertainment-related searches, it is essential for users to find and compare desired products more easily in the shopping sector.
He mentioned, "Currently, our AI analyzes vast amounts of shopping videos, such as Shorts, and recommends content that fits users' interests. In the future, we plan to develop features that automatically suggest tagging when creators introduce several products or to show products at the right moments during content playback."
The YouTube Shopping Affiliate Program has been introduced in Indonesia, Thailand, Vietnam, India, Singapore, and other countries following its launch in the U.S. and Korea. Katz stated, "We launched the affiliate program first in regions with high interest in online shopping and plan to expand globally, with the goal of allowing viewers to purchase all products through YouTube Shopping. We aim to create a global marketplace where users, creators, and brands can all participate."
Katz stated, "We plan to support more Korean brands and small businesses to participate in YouTube Shopping and meet new customer bases. Particularly for small brands, word-of-mouth and trust are key. YouTube is the optimal platform for brands to connect and grow with consumers through content like 'a friend's recommendation'. We will grow the YouTube Shopping ecosystem in Korea through expanded partnerships and enhanced services."