'Everyone bargains the same as if there is no new idea.'
Alphabet Inc's YouTube app now brings a shopping function in an effort to diversify streaming revenue following falling advertising spending.
The latest functionality is seen as a TikTok Shop service offered by ByteDance's short video application, a close competitor of YouTube in the video streaming industry.
Commenting on the general manager of YouTube Shopping, Micheal Martin, the main purpose of introducing the latest function is to expand monetization opportunities for users in the market.
He added that the introduction of this function is expected to attract users among Gen Z to buy products marketed by content creators.
For the record, YouTube's ad sales fell to $7.07 billion during the 3rd quarter compared to $7.2 billion in the same period last year as advertising firms pulled back spending due to economic pressures.
It turns out that YouTube now has to comply with the wishes of users who are more interested in the TikTok application when the company introduced Shorts, a short video function that helps creators generate income.
In addition, companies such as Meta Platform are also seen to be reinvigorating their marketplace functions in an effort to compete with the popularity achieved by TikTok since 2020.
As of this writing Alphabet shares are trading up 2.86% at $98.44.
