According to reports from The Information, Google is searching for more options to boost its bottom line in e-commerce market.
One of them the search giant is currently focusing is shopping links under YouTube videos. Google is running a test where it displays recommended products along with prices on its video-sharing platform.
Reports suggests that some test ads have popped up under Nike videos and after clicking on them would take the audience to the Google Express marketplace to complete the purchase. Similarly, retailers are joining Express and earlier this year Google started testing shoppable ads in image searches.
The company is using these features to boost its shopping business.
Google’s Parent company Alphabet reported this week that revenue for physical products such as Pixel phones and Home smart speakers year-over-year, emphasising that there’s an opportunity for growth.
On the other side, Amazon’s ad business is growing, which might be prompting Google to concentrate on other revenue streams since ads are a key source of its income.
Google takes a cut from goods sold through Express, however revenue pales next to Amazon’s retail income. Reports also suggest that Express have pulled in a little under $1 billion in 2018. Amazon’s giant retail arm generated around $141 billion in North America last year.
Google may hold an event later this month called Google Marketing Live at which it has revealed ad products in the past, while the I/O developer conference takes place next week, so there might have official word about the YouTube product ads soon.
In the past, YouTube has tried some similar sales initiatives. Last year, it let YouTube creators add links to their merchandise below their videos. One can say that was a precursor to this latest move.
Google is treading the e-commerce front carefully as in 2017, EU antitrust authorities fined it $2.7 billion in 2017 for favouring its products in search results.