Episode 597: YouTube Just Declared WAR on TikTok Shop – Here’s What Sellers Need to Know With Brett Curry
Host: Steve Chou
Guest: Brett Curry, Founder of OMG Commerce
Release Date: July 8, 2025
Introduction
In Episode 597 of The My Wife Quit Her Job Podcast, host Steve Chou welcomes back Brett Curry, the founder of OMG Commerce, to discuss YouTube's latest initiative to compete with TikTok Shop. The episode delves into YouTube's expansion into shoppable video content, exploring its implications for e-commerce businesses and how creators and brands can leverage this new platform to enhance their sales strategies.
YouTube's Shoppable Ads vs. TikTok Shop
Brett Curry introduces the concept of shoppable YouTube ads, positioning them as Google's strategic response to TikTok Shop. He explains the different formats of these ads, including pre-roll ads that appear before YouTube videos and interactive tags within creators' content.
"Shoppable YouTube ads, those can just be like the pre-roll ads... they have your products listed right beside that video on YouTube. So I can click and buy there." [05:00]
Brett highlights the versatility of YouTube as a platform, noting its significant presence on connected TVs, which surpasses other streaming services like Netflix and Hulu. This broad reach distinguishes YouTube from TikTok, offering unique opportunities for brands to engage with a diverse audience.
Incrementality and IROAS
A significant portion of the discussion focuses on the concept of incrementality in advertising, specifically YouTube's Incremental Return on Ad Spend (IROAS). Brett references a study by House Analytics that demonstrated YouTube's ads are "wildly more incremental, wildly more impactful" than what is typically reported within the platform itself.
"If the YouTube dashboard for your ads says a 1x return on ad spend, it's really equivalent to three and a half or something crazy like that." [08:06]
Steve emphasizes the importance of shifting focus from traditional Return on Ad Spend (ROAS) to IROAS to better understand the true impact of YouTube advertising campaigns.
Strategies for Small Businesses Using YouTube Ads
Brett outlines strategies for smaller businesses hesitant to invest heavily in YouTube ads due to the perceived difficulty in measuring their effectiveness. He suggests starting with view-based campaigns to build brand awareness and track metrics like view rates and branded search lift.
"Set a budget where it's like I could spend this for three months and if nothing happens, I won't be excited but it won't kill me." [18:58]
He advises businesses to monitor engagement metrics initially, such as view rates (aiming for over 20%) and subsequent searches for their brand, which can indicate a positive impact from the ads.
YouTube Affiliate Program: Features and Usage
The conversation shifts to YouTube's affiliate program, a key component of its strategy to rival TikTok Shop. Brett explains how brands can connect with creators through the Google Merchant Center, allowing creators to tag products in their videos and earn commissions on sales.
"Creators can Tag your products in their organic videos, they earn a commission. You get the exposure from those organic videos." [25:34]
He details the process, including setting up through platforms like Shopify's YouTube app or affiliate networks such as CJ and Impact. While the system is still manual, Brett sees significant potential, citing a client who generated $6,000 in commissions from 20 million organic views over six months.
Comparison with TikTok Shop
Brett compares YouTube's nascent shoppable features with TikTok Shop's more mature platform, acknowledging that YouTube is still in the early stages of developing a comprehensive solution.
"It's in its infancy. So this is more like, hey, do you want to be an early adopter?" [34:44]
He remains optimistic about YouTube's ability to refine its offerings, given its vast user base and robust creator ecosystem. However, he notes that TikTok currently offers a more streamlined experience for brands looking to scale rapidly.
Negotiation and Commission Strategies with Creators
The discussion turns to best practices for negotiating with creators within YouTube's affiliate framework. Brett emphasizes the importance of offering competitive commissions to incentivize creators effectively.
"I would just challenge that thinking of, hey, what is my acceptable cost per acquisition? And I'll pay close to that to, to an affiliate, to a creator." [38:49]
He advises brands to consider their customer acquisition costs (CAC) when setting commission rates, ensuring that the incentives align with their overall marketing budgets and goals.
Ideal Customer Profiles for YouTube Ads
Brett identifies the types of brands that stand to benefit most from YouTube's shoppable ads and affiliate program. He recommends targeting businesses with high Lifetime Value (LTV), higher Average Order Value (AOV), and products that lend themselves well to visual storytelling.
"I want something that's high ltv... or I know I've got it dialed in how much I'm gonna earn from a customer." [39:06]
He suggests that brands with subscription-based models or those offering higher-ticket items are better suited to leverage YouTube's advertising capabilities effectively.
Conclusions and Recommendations
As the episode wraps up, Steve and Brett summarize actionable steps for listeners interested in exploring YouTube's shoppable ads:
- Set Up a Merchant Center Account: Ensure your products are listed to access YouTube's affiliate features.
- Engage in Influencer Marketing: Inform current influencers about the ability to tag products directly in their videos, simplifying the affiliate process.
- Start with Brand Awareness Campaigns: Utilize view-based ads to gauge engagement and identify effective creatives before scaling to conversion-focused campaigns.
- Monitor Incrementality Metrics: Use tools like branded search uplift and IROAS to assess the true impact of your YouTube advertising efforts.
Brett encourages brands to experiment with YouTube's offerings early to gain a competitive edge, despite the platform's current limitations compared to TikTok Shop.
"You get to be an early adopter may cause you to be ahead of your competitors." [35:05]
Final Thoughts
The episode underscores the evolving landscape of social shopping and the critical role YouTube is playing in shaping the future of e-commerce advertising. Brett Curry's insights provide valuable guidance for brands looking to diversify their marketing strategies and harness the power of video content to drive sales.
Notable Quotes:
- "YouTube is like TV on steroids. Old school TV, but vastly more interactive and measurable." [45:13]
- "Creators are willing to tag products now, making the affiliate process much simpler than before." [31:16]
- "Understanding your LTV and AOV is crucial before diving deep into YouTube advertising." [39:06]
Connect with Brett Curry
For those interested in leveraging YouTube's shoppable features or seeking expert advice on e-commerce strategies, Brett Curry can be reached through his LinkedIn profile or by visiting OMGCommerce.com.
Resources Mentioned:
- House Analytics Study: Detailed in Brett’s talk, highlighting YouTube's high IROAS.
- Google Merchant Center: Platform for managing product feeds and affiliate programs.
- Affiliate Networks: CJ, Impact, and others integrated with YouTube for tracking commissions.
Next Steps:
If you're ready to explore YouTube's shoppable ads for your e-commerce business, consider starting small with brand awareness campaigns and gradually scaling based on your performance metrics. Engage with creators through YouTube's affiliate program to maximize your product visibility and drive incremental sales.