Everyone Should Know How to Leverage Video Commerce in Southeast Asia

With the rapid development of digital technology, the rise of Video Commerce in the Southeast Asian market has become an undeniable trend. According to the 2024 Southeast Asia E-commerce Report, Video Commerce accounts for 20% of the region's total GMV (Gross Merchandise Volume), showing significant growth compared to 5% in 2022. More notably, over 40% of Southeast Asian online shoppers rely on video content to make purchasing decisions. This data not only reveals the potential of Video Commerce but also provides brands with a new marketing battlefield. However, to stand out in this blue ocean, brands need to find a video platform that is both trusted by consumers and offers high returns. YouTube, as a highly trusted platform by Southeast Asian consumers, has an advertising return on ad spend (ROAS) that is 2.3 times higher than paid social media, making it an essential choice for brands. This article will delve into how to use Google Ads in conjunction with YouTube's Video Commerce features to maximize brand influence and sales performance in the Southeast Asian market.

I. The Rise of Video Commerce in Southeast Asia

1. Market Status

The rapid growth of Video Commerce in Southeast Asia reflects a shift in consumer behavior. According to the 2024 Southeast Asia E-commerce Report, Video Commerce already accounts for 20% of the region's total GMV and continues to grow. Behind this phenomenon is consumers' high reliance on video content. Over 40% of online shoppers stated that they use video content to Google advertisements evaluate products and make final purchasing decisions. This trend is particularly evident in Thailand and Indonesia. Kantar's survey shows that 85% of Thai audiences believe that YouTube creators' content is trustworthy, a higher percentage than other platforms (such as Instagram and TikTok). In Indonesia, 67% of users stated that they can trust brands recommended by YouTube creators, while the trust levels for Instagram and TikTok are 47% and 50%, respectively. These data indicate that YouTube is not just a video platform but also a powerful tool that can influence consumer purchasing decisions.

2. Opportunities and Challenges

Although Video Commerce provides brands with significant market opportunities, it Google advertisements also comes with challenges. First, brands need to find a trusted and efficient video platform to ensure that their content can reach the target audience and drive actual sales conversions. Second, the success of Video Commerce relies not only on content quality but also on integrating various marketing tools, such as Google Ads and YouTube Shopping, to shorten the consumer journey from discovery to purchase. Additionally, brands need to cope with increasing market competition. As more brands enter the Video Commerce space, creating differentiated content and enhancing brand trust have become critical challenges. This is where YouTube's strengths lie—its high return rates and consumer trust make it a top choice for brands in the Southeast Asian market.

The Rise of Video Commerce in Southeast Asia

II. The Advantages of YouTube Video Commerce

1. High Return Rates and Consumer Trust

YouTube's advertising return on ad spend (ROAS) is 2.3 times higher than paid social media, according to Google Ads Nielsen's global MMM meta-analysis. This means that brands' advertising investments on YouTube can yield higher sales conversions and profits. Moreover, YouTube's consumer trust makes it an ideal platform for brand promotion. For example, 85% of Thai audiences believe that YouTube creators' content is trustworthy, a higher percentage than other platforms. This high trust level not only enhances advertising effectiveness but also builds stronger connections between brands and consumers. Through recommendations by YouTube creators, brands can more effectively reach their target audience and increase brand awareness.

2. The Potential of YouTube Shopping Features

YouTube Shopping is a significant feature recently launched by YouTube, designed to Google Ads shorten the consumer journey from discovery to purchase. Highly visible purchase links can be embedded in YouTube videos, shorts, and live streams, alongside useful product information such as pricing. This feature not only enhances the shopping experience for consumers but also provides brands with more sales opportunities. For example, when a creator showcases a product in a video, viewers can directly click the purchase link in the video to buy. This seamless shopping experience not only increases conversion rates but also provides creators with an additional income source—they can earn commissions by tagging products.

3. The Benefits of Creator Affiliate Marketing

YouTube Shopping's affiliate marketing feature offers a win-win opportunity for brands and creators. Brands can expand their influence through creators' content, while creators can earn commissions by tagging products. This collaboration model not only accelerates sales revenue but also enhances trust between brands and consumers. For example, L'Oréal Thailand successfully increased brand awareness and reduced cost per visit through collaborations with YouTube creators. This success story demonstrates the immense potential of YouTube Shopping in the Southeast Asian market.

The Rise of Video Commerce in Southeast Asia

III. Strategies Combining Google Ads

1. Google Merchant Center Integration

Brands can automatically make their products available for tagging by YouTube creators through Google Merchant Center. This integration not only simplifies the product promotion process but also expands product exposure. For example, by collaborating with e-commerce platforms like Shopee, brands can further enhance their product visibility and sales.

2. The Application of Demand Gen Campaigns

Demand Gen campaigns are an important feature in Google Ads, designed to attract new customers through immersive visual content. Brands can use YouTube's long-form and short-form video formats for Demand Gen campaigns to increase brand awareness and expand influence on new customers.

For example, L'Oréal Thailand successfully provided over 10 times the paid views of creator views and reduced cost per visit by combining Demand Gen campaigns with YouTube Shopping affiliate programs.

3. AI-Driven Advertising Optimization

The application of AI tools in Google Ads provides brands with more efficient advertising optimization solutions. Through AI tools for media budget planning and audience targeting, brands can measure and optimize advertising campaigns in real-time, improving return on investment.

For example, Topkee offers a one-stop online advertising service based on Google advertisements, aimed at helping businesses maximize potential customer conversion rates and sales through precise advertising strategies. Whether you are a small business or a large corporation, we can provide tailored solutions based on your needs. Our services cover the entire process from advertising strategy formulation to execution and optimization, ensuring that every dollar of your advertising budget delivers maximum value. With our professional team and advanced tools, you can easily navigate market competition and stand out in the digital marketing field.

AI-Driven Advertising Optimization

Conclusion:

Video Commerce is shaping the future of shopping in Southeast Asia, and brands can turn viewers into customers through YouTube Shopping. By combining strategies with Google Ads, brands can not only increase brand awareness but also achieve higher sales conversions and profits. If you want to succeed in the Southeast Asian market, consider consulting with experts to develop a Video Commerce strategy tailored to your needs.