YouTube's 'Shopping Partnership Program', introduced last year, is changing the revenue structure for creators. Moving away from reliance on advertisements, sponsorships, and view-based revenue, commission earnings from product purchases linked within content have established themselves as the primary source of revenue. Through this program, YouTube is evolving from a simple video platform to 'content commerce'.
ChosunBiz interviewed the lifestyle tip channel 'Introduction Tip' (Gwon Dong-hyun and Lee Ye-rin) and beauty creator 'Scarlet Unni' at the Dongdaemun Design Plaza (DDP) in Seoul on the 24th of last month. The two channels have approximately 360,000 and 100,000 subscribers, respectively. Despite not being large channels with millions of subscribers, they have established a revenue base that allows them to transition to full-time YouTubers through YouTube Shopping. They noted that their revenue has increased significantly thanks to the YouTube Shopping Partnership Program.
The YouTube Shopping Partnership Program was introduced in June last year. Excluding the United States, Korea is the first to implement it. Creators who meet the eligibility criteria can register easily and tag various products sold by partner companies in their content. The partners have expanded from Coupang to Olive Young and Zigzag this year. Viewers can click on the tags to purchase products, and creators receive commission for this.
As of the 10th, more than 25,000 creators in Korea alone have joined this program, with product tags appearing in over 950,000 videos.
◇ Diversifying creator revenue through partnership program
Introduction Tip started its YouTube activities in June 2023. Initially covering a variety of topics such as food reviews, travel, and lifestyle, it now focuses on 'my own money, my own purchases' product reviews, primarily operating with shorts content. For example, if there is an overheating fire hazard with air conditioners, they create content lasting around 30 seconds that bundles fire prevention stickers and various safety tools.
Gwon, the operator, said, "Since starting the YouTube Shopping Partnership Program, my revenue has increased approximately 20 times compared to before," adding, "I quit my job at this point." His wife, who co-manages the channel, Lee, noted, "Not only the tagged products but also viewers who click on the tagged links go to the partner companies. We receive commission for all products purchased from Coupang, Olive Young, and Zigzag."
Scarlet Unni, a former researcher at a cosmetics company, began creating content in 2021. After initially focusing on short videos, she began creating long-form content in conjunction with her resignation in 2023. Scarlet Unni stated, "Previously, I was highly dependent on brand advertisements, but since introducing shopping revenue, the share of platform revenue has increased dramatically," emphasizing that since the target audience is primarily women in their 20s and 30s, view-based revenue is not very significant.
◇ Creators reinvest increased revenue into content
Scarlet Unni remarked, "With the additional revenue from the Shopping Partnership Program, I have been able to invest more in content." She added, "I have been able to hire staff to run the account more robustly," stating, "I can also prove sales when collaborating with brands."
The Introduction Tip channel does not accept sponsorships at all. Lee stated, "I have tried products from joint purchases or sponsored items, but I couldn't say good things about a bad product," adding, "I plan to continue creating content focused on the tags from the Shopping Partnership Program."
◇ YouTube building a new ecosystem
YouTube is being evaluated not just for including shopping features in content but for creating a new ecosystem that combines video and content planning with commerce strategies. It is said to be changing the ways brands, distribution, and content are planned.
Scarlet Unni affirmed, "Even small channels can succeed. The key is to do shopping well," emphasizing, "Content that alleviates the inconveniences of subscribers is the core of YouTube Shopping." She mentioned, "I create content while considering if it's a product I would actually want to buy and if it truly helps my subscribers," stating, "What creators sell is not a 'product', but 'value'. Only by sharing experiences where inconveniences have been resolved can we share experiences with the audience."
Gwon commented, "I don't do products that others do. There is a difference between following trends and imitation," stating, "Even if I have prepared a video, I won't upload it if it's already posted on another channel first." He advised, "You should prepare for initial trial and error and be ready to endure at least six months to a year without revenue."
Lee noted, "The YouTube Shopping Partnership Program's revenue can continue beyond a day to over a week depending on how well the content was produced and how much it is exposed in the algorithm." She added, "When creating content, I approach it with the intention to introduce products that I genuinely love. Without an advertising label, viewers can consume content naturally, resulting in improved viewing duration and conversion rates."