Commentary

YouTube: What Gets Consumers To Purchase?

YouTube videos have made it easy for consumers to quickly move from browsing to purchasing. The transition is being supported not only by videos, but also ads.

Forty-six percent of consumers said they have purchased a product discovered on YouTube, and most did so within two weeks, according to a report from Channel Factory, a technology company that ensures ads are placed next to contextual relevant content.

Ads drive the biggest uplift in market engagement. Nearly 46% of consumers buy products they discover on YouTube, spending $258 on average.

One in three shoppers purchase after seeing a YouTube ad, with the average spend at $141.00 vs. one in five after seeing creator content spending $117.00 on average.

YouTube Shorts at 23% is the most persuasive format, followed by long videos at 12%, pre- and mid-roll ads at 12%, and livestreams at 7%, according to the report.

advertisement

advertisement

Channel Factory’s global study of more than 13,000 consumers across nine retail markets reveals how YouTube shapes the shopping journey, from Thanksgiving and Black Friday to Christmas, New Year, and Diwali.                    

YouTube has become a full-funnel platform where inspiration sparks intent, and intent rapidly turns into action, Rodrigo Paolucci, Global Head of Marketing at Channel Factory, told MediaPost.

For fashion and other apparel, YouTube is a primary source of inspiration and price comparison. Nearly one in five consumers said they use YouTube to compare prices. Another 17% said they use it for inspiration and styling tips.

But data shows YouTube is particularly effective for fashion, homeware, consumer electronics, food and drink, and travel because these sectors benefit from visual storytelling. 

Purchases can occur after seeing a video at any point from immediately after to several weeks. About 5% of consumers surveyed said they purchase immediately, while 11% purchase within 14 days regardless of the category, and 17% purchase within two to six weeks.

Only 1% said they wait longer than a month. That short window highlights how vital timing, relevancy, and contextual alignment are in driving fast sales.

AI is shaping what consumers see on YouTube, but people still strongly prefer human-created content when making purchase decisions. About 43% of consumers favor ads or videos made by humans, compared with just 7% who prefer AI-generated content. Twenty-three percent said they don’t mind either way -- AI-generated or human-generated -- and 17% like a mix of both.

Regardless of whether it’s human-created or AI-generated, the aim for any content is to engage its user. The preference for human-created content over AI-generated content is also consistent across all age groups and genders, highlighting that authenticity and consistent quality remain key to building trust and loyalty.

Next story loading loading..