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New YouTube tools aim to turn product discovery into purchases

The news: YouTube wants to be the home for both product discovery and ecommerce as it rolls out new shopping features across long-form videos and Shorts, per The Verge.

Incoming additions:

  • Dynamic brand segments. Creators can swap out sponsored slots in long-form videos once deals are complete, removing a single permanent sponsor for the life of a video. Coming in 2026.
  • AI tagging. This will automate identifying and tagging “eligible products” in voiceovers, images, and creator inputs on videos. Rolling out over the next year.
  • Shorts brand links. Creators will be able to link directly to a brand’s site, boosting ROI data to include conversions and direct traffic. Testing now for release in 2026.

Targeting Gen Z: The vast majority (91%) of Gen Z teens ages 13 to 17 watch YouTube, and 66% watch Shorts specifically, per a Precise TV study. YouTube is optimizing videos for shopping as that generation’s buying power increases.

The social streaming platform also has a high recall rate for ads on its videos. Two-thirds (67%) of Gen Z teens said YouTube is where they saw an ad for an item they asked their parents to buy. TikTok, Facebook, and Instagram all hover around 50%.

The challenge: As YouTube continues to dominate connected TV (CTV) time, enabling shopping features on both mobile screens and big screens could prove difficult. The platform has already moved Shorts to the top of its TV app, but the format isn’t ideal for external linking.

Our take: YouTube is announcing new features—like shoppable masthead ads and text-to-video tools—at a breakneck pace, looking to capitalize on its growth across platforms.

Brands should partner with both top creators and smaller influencers to boost discovery and purchases. Dynamic brand segments, in particular, open the door for new brands to appear in older videos that have viral potential.

Dive deeper: Read our YouTube Influencer Marketing 2025 report for further insights.

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