YouTube is launching its Shopping affiliate program in India through partnerships with e-commerce marketplace Flipkart and fashion retailer Myntra, enabling creators to earn revenue by tagging products in their videos.

The program expands on YouTube’s existing merchandise features and allows eligible creators to generate income when viewers purchase products through affiliate links on partner websites. The move comes as YouTube reported over 30 billion hours of shopping-related video views globally in 2023.

According to YouTube data, more than 110,000 channels in India have surpassed 100,000 subscribers as of December 2023. Research indicates that 65% of consumers in Indian metro cities find YouTube creators more trustworthy than traditional celebrities when it comes to product recommendations.

“The incredible global success of YouTube Shopping, with over 30 billion hours of shopping-related content watched in 2023 alone, demonstrates the power of connecting creators, viewers, and brands in exciting new ways,” said Travis Katz, General Manager and VP of Shopping at YouTube, in a blog post.

The program integrates with YouTube’s existing monetization options, including ad revenue, YouTube Premium, channel memberships, and fan-driven features like Super Chat. 

YouTube’s creator economy has generated Rs 16,000 crore (~$1.9B) of economic activity and created 750,000 jobs in India, YouTube chief executive Neal Mohan told The Economic Times.

Flipkart reports that 98% of its creator base comprises micro and nano-influencers. “To make shopping engaging and personalized and empower customers to make informed purchase decisions, we have pioneered video commerce on our platforms,” said Ravi Iyer, SVP and Head of Corporate Development and Strategic Partnerships at Flipkart Group, in a statement.

The Shopping affiliate program launched as YouTube’s Connected TV viewership in India has quadrupled over the past three years. The platform now ranks as the top streaming service on Connected TVs in the country, offering creators additional opportunities to showcase products across multiple formats, including long-form videos, Shorts, and live streams.

The announcement follows Google’s $350 million investment in Flipkart in May. Both Flipkart and Myntra have previously experimented with video commerce through initiatives such as Myntra Minis, Ultimate Glam Clan, and Flipkart’s Affluencer program.

Creator success stories include BhaDiPa, a Marathi entertainment channel that has leveraged YouTube’s merchandise features to sell products featuring channel-specific content. 

“Our venture into merchandise sales has not only enhanced our community engagement but also generated additional revenue streams,” BhaDiPa CEO Paula McGlynn stated in the blog post.

The program will be available across multiple mobile, web, and Connected TVs. It will allow creators to integrate product recommendations into various content formats, including YouTube Shorts, which has achieved trillions of views since its initial launch in India.

According to a recent Kofluence report, India’s influencer marketing industry will continue to grow. By 2028, over 80% of brands are expected to spend up to 30% of their marketing budgets on influencer collaborations. Total industry spending is projected to reach $2.8-3.5 billion during this period.