Beginner's guide: how to use YouTube for dropshipping

Dropshippers can reap amazing benefits when advertising on YouTube.

The second most-visited website in the world, according to SimilarWeb, January 2023, YouTube is an influential platform.

The potential reach of ads on YouTube is 2.48 billion people, says DataReportal. That's 31% of the global population (almost 50% of all internet users).

With such a large audience, it's safe to say that YouTube advertising is a worthy investment for your dropshipping business.

These are short video adverts that appear before, during, or at the end of a YouTube video. Skippable ads can be skipped after 5 seconds and non-skippable videos must be watched before the video can resume. Bumper ads are the additional large graphic banner advert that may accompany the video ad.

How do YouTube ads work?

Google bought YouTube in 2006, so setting up your ads is through the Google Ads platform. Here are the steps for creating your YouTube ad:

• Make a Google Ads account or sign in
• Set up a new ad campaign for YouTube
• Create your video advert (recommended to be 6-30 seconds)
• Launch the ad and check the analytics
• Perform testing

Designing your video ad

Most people aren't professional video creators, so making a YouTube ad can sound daunting. Having said that, some successful ecommerce startups have made video ads simply using an iPhone. If time and energy are not on your side, , hire a freelancer to take care of the video creation for you.

Influencers on YouTube create user-generated content that people love. DataReportal found that globally, internet users watch on average 23 hours of YouTube per month.

Popular influencers such as vloggers and streamers can earn millions of subscribers and views per video, however, even micro-influencers (10-50k subscribers) can greatly increase the likelihood of viewers making a purchase based on their product recommendations.

How much is the influencer market worth?

In 2021, the influencer market was valued at USD 10.39 billion worldwide as per Grand View Research. The estimated compound annual growth rate is set to be an astounding 33.4% for 2022-2030.

Influencers are trusted by their subscribers

Social media influencers are a cost-efficient marketing tool for brands according to many studies such as one published by Guoquan Ye in the Journal of Advertising, 2021. Consumers perceive the marketing as less invasive and appreciate the friendly and non-sales form of product reviews.

How to work with influencers

• First, research which influencers best suit your niche. Who are your customers likely to watch on YouTube? Will it matter which country they are based in?
• Reach out to influencers and ask about the rates they charge for product promotion. Depending on their size, it may be their management team you need to contact.
• Negotiate a price and if it suits your budget, agree on the terms of the advertising.
• Watch your ecommerce sales increase.

Besides reaching a huge number of viewers online, creating YouTube content makes you more searchable on Google. YouTube videos feature high on Google search results, giving you a big advantage over competitors that don't have a YouTube presence.

What content should I create on YouTube for my brand?

Create unique content that is useful and relevant to your target audience. Avoid the old-hat sales talk and think of more creative ways to promote your products in YouTube videos.

Types of content:

• Entertaining - fun, comedic, light-hearted
• Educational - how-to videos, testing and comparing products
• Emotional - move and inspire your audience

Remember that having high-quality production for your content is extremely important. Viewers have high expectations of YouTube videos and are used to high definition filming, seamless editing, microphones if talking is involved, and good lighting.

Examples of companies using YouTube

LEGO(over 14 million YouTube subscribers). The much-loved toy brand posts how-to videos such as how to build a LEGO racing car, rocket or tree. They collaborate with celebrities who feature in their videos making LEGO creations.

Small Business Toolbox(over 23k YouTube subscribers). This channel is run by Andy Mac, a businessman that advises being self-employed in the UK. He posts informative videos such as how to complete tax returns and tools for small businesses.

Blendtec (over 856k YouTube subscribers). Blendtec sells blenders and had the genius idea of promoting their product by testing if different items will blend. The brand catches interest by shocking audiences, "Will it blend?" Expensive items used to show the power of the blender include iPhones and the Apple Watch.