YouTube creators gather in Playa Vista to mingle with leading brands

Crowds gathered at a historic aircraft hangar in Playa Vista Thursday to browse the latest fashions, from bags to clothing and shoes, in preparation for the holiday shopping season.

These were not shoppers or retailers looking for the latest products. Instead, they were YouTube video creators courted by brands from Lowe's to Shark Beauty to entice online audiences to buy their products.

Aaron Ramirez, a 22-year-old men's fashion and lifestyle influencer, stood in front of carefully curated shelves of backpacks, deciding which products he would endorse for his 234,000 YouTube subscribers.

“I can make a video about anything that improves my quality of life and link to it,” Ramirez said. “I only recommend products that I actually use and really like.”

The San Diego resident was among about 300 creators participating in YouTube's annual creator bonus called “Holiday Home,” which helps internet personalities prepare to sell products during the busy holiday shopping season.

The event, held in a huge converted Google office that once housed Howard Hughes' famous Spruce Goose airplane, underscores YouTube's push to become a bigger player in online shopping by using its relationships with creators to promote products in much the same way as rival TikTok does.

In August, YouTube introduced new tools to help its creators better promote the products they plug into their videos. One feature uses artificial intelligence to determine the optimal location on the screen to place a purchase link when an influencer mentions a product. If a customer clicks on this link and makes a purchase, the creator receives a commission.

Brands that were once skeptical of influencers have embraced them over time as sales tracking tools have improved and video creators' fan base has exploded.

“It's like the people you saw on television, and before that, the people you listened to on the radio, who became trusted figures in your life,” Ernest Petty, head of trend analysis at YouTube, said in an interview. “'Oprah's Favorite Things' became a phenomenon because of how trusted Oprah was, so it's really the same phenomenon that just spread across the entire ecosystem of creators.”

Despite economic uncertainty and tariffs imposed by the Trump administration, U.S. shoppers are expected to spend $253.4 billion online this holiday season, up 5.3% from a year ago, according to Adobe Analytics.

Social media platforms have contributed to this growth to some extent. According to Adobe Analytics, the market share of online revenue from purchases made by affiliates and social media partners, including influencers, is expected to grow 14%.

Frugal consumers are doing more research about how they spend their money, including looking at recommendations from influencers. In fact, according to YouTube, nearly 60% of 14- to 24-year-olds who go online say their personal style is influenced by content they see online.

“It's more about discovery, understanding where the best deals and the best options are,” said Vivek Pandya, director of Adobe Digital Insights. “Many of these users get recommendations from their influencers.”

YouTube is one of the leading streaming platforms, accounting for 13.1% of viewing time on US TVs in August, more than rivals Netflix and Amazon Prime Video, according to Nielsen. And shopping videos are particularly popular with viewers, with more than 35 billion hours of viewing per year, according to YouTube.

With YouTube's shopping feature, viewers can see products, add them to their cart, and make purchases directly from the video they're watching.

Promoting and enabling e-commerce through one-click video has gained enormous importance in China, sparking a wave of live streaming and recorded shopping videos across Asia and the world. Live commerce, also known as online commerce or e-commerce live streaming, is a powerful combination of streaming, chatting, and shopping.

The temptation to shop is heightened by algorithms like TikTok Shop, which encourage people to try more channels and products.

As of July, more than 500,000 video creators have signed up to participate in YouTube Shopping, according to the company.

Authors who promote products can make money through advertising and brand deals, as well as commissions.

YouTube already shares advertising and subscription revenue with its creators and does not currently take a cut from its shopping tools, said Travis Katz, vice president of YouTube Shopping.

“For us, it’s all about connecting the dots,” Katz said. “At YouTube, one of the things we're really focused on is how do we make sure our creators are successful? It gives creators a new way to monetize.”

Companies like Austin-based BK Beauty, founded by YouTube creator Lisa Jay, said YouTube users have helped boost sales of their products.

“They’ve built this long-term audience,” said Sofia Monetti, BK Beauty’s senior manager of social commerce and influencer marketing. “A lot of these creators have created channels. They've been around for ten years and they just have a very active community.”

Of course, YouTube faces a formidable competitor in TikTok, which is a leader in live shopping (its parent company Byte Dance for sale group of American investors so that the hugely popular app can continue to operate in the US).

The social video company launched TikTok Shop two years ago, working with creators and brands to create live shopping shows that encourage viewers to buy products. In 2024, there were 8 million hours of direct shopping on TikTok.

YouTube says its size and technology create advantages, as well as the loyalty its creators gain from fans when it comes to product recommendations.

Bridget Dolan, director of the YouTube Shopping Partnership, said that “shopping has been in YouTube's DNA from day one” and that the company is integrating shopping features into its viewing experience.

Santa Clarita YouTube creator Cheray Lewis said YouTube Shopping has helped her gain traction and trust with her audience through quality recommendations. Lewis, who has 109,000 subscribers on YouTube, makes videos about products such as fragrances and skin care products.

Lewis has been making videos for eight years and has worked with companies such as Rihanna's beauty brand Fenty.

“I try to inspire women and men to feel bold and confident through the scents they wear,” Lewis said at Thursday's event. “I give my audience real conversation, real authenticity.”