The Overlooked Channel Fueling E-commerce Growth in 2025: YouTube Ads

youtube ads

If you’re running paid media for an e-commerce brand, it’s worth paying close attention to where budgets are quietly shifting. While most marketers are still crowding the usual suspects: Meta, TikTok, Google Search – the savvier brands are moving a step ahead.

They’re leaning into YouTube.

And not in a small way. In the final quarter of 2024, YouTube ad spend rose by 13.8%. That’s not a temporary jump- it’s the start of a meaningful shift in the digital ad landscape. For brands looking to diversify their media mix and unlock more scalable acquisition, YouTube is fast becoming a critical part of the strategy.

Here’s why.

YouTube is built around intent

Let’s start with user behaviour. TikTok and Instagram are excellent for entertainment, but users aren’t there to make decisions, they’re there to scroll.

YouTube is different. It’s a platform people actively use to solve problems, do research or evaluate purchases. They type in specific queries. They watch product comparisons, how-tos and reviews. As an advertiser, that’s an opportunity to place your brand right next to high-intent moments.

You’re not interrupting; you’re showing up exactly where your product naturally fits into the conversation. And when you’re promoting a product that requires a bit of thought before purchase, this makes a huge difference to results.

Time spent on YouTube isn’t just higher-it’s higher quality

Here’s how monthly average watch time stacks up:

  • TikTok: 9.5 hours
  • Instagram: 12 hours
  • YouTube: 23.1 hours

And around 70% of that YouTube viewing is happening on TV screens.

That’s a completely different level of attention. It’s not someone scrolling on their phone between tasks. It’s leaned-back, living room-style viewing-more like traditional TV than mobile social media.

For brands, that means you get a longer window to make your case. It also means more emotional connection, stronger recall and a far better shot at moving someone from awareness to purchase.

YouTube’s audience is older-and they spend more

One of the myths we hear all the time is that YouTube is a Gen Z channel. In reality, the majority of meaningful conversions are coming from older segments.

Here’s what the actual audience split looks like:

  • 25–34: 20%
  • 35–44: 15%
  • 45–54: 11%

These are prime-age buyers with disposable income-ideal for brands selling products in the £50–£100+ range. If you’ve been running campaigns on TikTok or Instagram and struggling with low AOV or inconsistent conversion rates, YouTube could be the answer.

YouTube leverages the power of Google’s data ecosystem

This is where YouTube becomes more than just a video platform-it becomes a strategic growth engine.

Because YouTube ads run through Google Ads, you can use all the first-party search data you’ve already collected. That includes the search queries converting on Google, the shopping campaigns driving revenue, and the audiences showing the strongest intent.

You can:

  • Build YouTube audiences based on proven keyword performance
  • Repurpose winning creative from Meta or TikTok
  • Track performance across the entire funnel with much more visibility

It’s a rare advantage. You’re not starting from scratch-you’re building on a foundation that already works.

A real-world result from our agency

We recently helped a consumer brand test YouTube as a new acquisition channel. They started with a modest £1,000 weekly spend. Within 90 days, we had scaled to £13,000 per week-and their ROAS actually improved during that ramp-up.

We followed a layered structure:

  1. Start with high-performing Google Search and Shopping
  2. Add retargeting to re-engage recent visitors
  3. Introduce Performance Max for broader reach
  4. Scale with YouTube Demand Gen and in-feed video ads

Because we already had the funnel in place, adding YouTube allowed us to amplify what was working-not guess our way through a new channel.

The opportunity is now-but it won’t last forever

Right now, YouTube ads are still underpriced relative to the value they deliver. You’re getting a combination of intent, attention and targeting that few other platforms can offer-and you’re doing it at CPCs that haven’t yet caught up to the demand.

If your brand is looking for the next real growth lever-and you’ve already tapped into Meta or Search-YouTube should be high on your list.

It’s not about abandoning what’s worked. It’s about building on it. And if you get your structure right, YouTube doesn’t just generate views. It drives profitable, scalable revenue.

Need help mapping out a strategy that connects the dots between Search, Meta and YouTube? That’s exactly what we do. Let’s talk.

Paid Ads Specialist Jke Cronin

Jake Cronin

Paid Acquisition 🚀

Christian Horne

Paid Acquisition 🚀

B2B & B2C Paid Acquisition

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