Video site will be connected to Google Shopping technology.
YouTube is branching out into the ecommerce market as its owners Google look to take on Amazon and eBay.
The video site will now be connected to the technology which powers Google Shopping which will enable advertisers to display links to individual products.
Prices and descriptions will also be displayed from the ad video, this will give them the ability to combine a broad branded message with targeted items to customers.
Neal Mohan, VP, brand advertising, Google, said: "Consumers go to YouTube to be entertained and to find information. There are lots of searches for products and looking for ‘How To’ videos. They are truly engaged which from a marketer perspective is the perfect time to reach the consumer."
This development comes after Google has also been revealed to be looking at developing a "Buy Button" that will allow consumers to buy from a search advert on their phone, without leaving Google.
Andreas Pourous, co-founder of Greenlight, said: "While Google dominates the online search market, Amazon and Ebay have become annoying flies in its ear. Consumers are increasingly going straight to these marketplaces to find the products or services they want to buy and this has raised questions over the search giant’s future in the consumer journey."
"Turning YouTube into a giant storefront is the clearest indication yet that Google isn’t taking this threat lying down. By enabling consumers to buy products from within YouTube videos, Google is marking out a new e-commerce battlefield against retail marketplaces – in the realms of consumer entertainment."
"With demand for YouTube videos growing by 50% YOY, Google has an enormous consumer audience at its finger tips. The pressure is now on for marketplaces like Amazon and Ebay to respond; will they draw swords and invest in bringing shopping and entertainment together, or have they got another weapon in their arsenal?"
YouTube currently has more than 1 million channels which are focused on reviewing products, which has been seen to be a growing market with an increase of 50% year on year.