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Dec 25, 2025

YouTube Shorts Holiday Ads: 3 Game-Changers for 2026

Powerful advertising updates transforming holiday campaigns

Alex Ashcroft

Founder

I've been watching YouTube Shorts evolve from a TikTok copycat into something genuinely powerful for brands. And just in time for the festive shopping rush, YouTube has rolled out three major advertising updates that could be game-changers for holiday campaigns. If you're still finalising your marketing plans, you'll want to take note of these.

From Upstart to Advertising Powerhouse

It's quite remarkable how far Shorts has come since 2021. What started as YouTube's hasty response to TikTok has transformed into an absolute behemoth – we're talking about 200 billion daily views globally in 2025. That's nearly triple last year's figure!

What's particularly impressive is how YouTube now captures 12.5% of all US telly viewing. For advertisers like us, this means unprecedented access to engaged audiences. The numbers that really caught my eye were the engagement metrics:

  • 5.91% average engagement (beating both TikTok and Instagram Reels)

  • 73% average retention rate

  • 14-minute average viewing sessions

These aren't just vanity metrics; they show that viewers are genuinely absorbing Shorts content – making them perfectly primed for advertising messages.

The Three Holiday Game-Changers

So what's new? YouTube's December announcement introduces three key updates that could transform your holiday campaigns:

1. Comments on Ads – Finally!

This one's been on my wish list for ages. Brands can now activate comments directly on their Shorts ads. It's a small change that makes a massive difference – transforming passive advertising into active conversations.

Imagine being able to answer product questions right there in the comments or address concerns before they impact purchase decisions. It's brilliant for building genuine community around your promotional content.

There's a catch, though – you'll need your YouTube channel linked to either a Google Ads account or a 360 Space account. This ensures only proper brand representatives are managing these conversations.

2. Creator Links That Actually Work

If you've worked with creators before, you'll know the frustration of the "link in bio" workaround. YouTube has finally solved this with clickable links within branded content.

This means viewers can jump straight from watching a creator recommend your product to your website in a single tap. During the frantic holiday shopping period, removing this friction could significantly boost conversions.

What I particularly like about this update is the transparency it brings. Both brands and creators get clear metrics on partnership effectiveness, creating more accountability in influencer marketing.

3. Shorts Everywhere

Previously, Shorts ads were confined to the YouTube app. Now they're available across:

  • Mobile web

  • Desktop browsers

  • Connected TVs

This omnichannel approach means your campaign can reach consumers regardless of how they're accessing YouTube – crucial during the holidays when viewing habits become even more fragmented.

The Numbers Don't Lie

I'm always sceptical about platform-sponsored research, but the Kantar study commissioned by Google presents some compelling evidence:

  • 8.8% increase in purchase intent from Creator Ads on Shorts

  • 2.9x more consumer intent to spend compared to rival platforms

  • 20% higher conversion rates when incorporating creator content and natural audio

  • 22% more engagement with clear calls-to-action

These aren't marginal improvements – they're significant enough to warrant shifting budget allocation, especially during the high-stakes holiday period.

Why This Matters for Holiday 2025

Understanding why these updates matter requires looking at the broader consumer landscape. This Christmas shopping season is happening against a backdrop of economic uncertainty – 57% of consumers expect economic weakening, making them more deliberate about purchases.

Several factors make Shorts particularly effective right now:

  1. We're all goldfish now – With attention spans hovering around eight seconds, Shorts' brief format matches perfectly with how consumers process information.

  2. Authenticity sells – There's been a massive shift away from polished ads toward relatable content from real people. Shorts creator partnerships tap directly into this.

  3. Social validation matters – Holiday shoppers increasingly seek community validation before splashing out, and comment sections provide this crucial social proof.

Making It Work: Practical Tips

If you're keen to implement these new features, here's what I've found works best:

  • Get the format right – Vertical video (9:16) dramatically outperforms horizontal or square content

  • Keep it tight – Videos under 60 seconds achieve completion rates around 76%

  • Front-load your message – The first three seconds determine whether viewers stick around

  • Don't forget sound – Ads with natural audio convert 20% better than silent ones

  • Be crystal clear – Strong calls-to-action increase engagement by 22%

The most successful campaigns I've seen combine Shorts with long-form content. Use Shorts for broad reach and initial engagement, then drive to longer videos for deeper message development.

The Creator Factor

With these new features, creator partnerships become even more valuable. What's interesting is that micro-influencers (10,000-100,000 followers) consistently deliver 60% higher engagement than macro-influencers. It's worth spreading your budget across multiple smaller creators rather than blowing it all on one big name.

How Does It Stack Up?

Compared to competitors, YouTube Shorts offers some distinct advantages:

Platform

Engagement Rate

CPM

Key Advantage

YouTube Shorts

5.91%

£4.00

Search discovery, older audience

TikTok

5.75%

£4.38

Algorithm strength, youth audience

Instagram Reels

5.53%

£1.67

Lower cost, Meta integration

What sets Shorts apart is that content can be discovered through search, not just algorithmic recommendations. This is brilliant for intent-based holiday shopping campaigns.

Looking Ahead

Beyond this Christmas, I'm watching several trends that will shape Shorts advertising:

  • AI tools for creating multiple content variations efficiently

  • Expanded shopping features that are showing 40% more product clicks

  • YouTube's algorithm increasingly favouring fresh content

What You Should Do Now

Based on all this, here's my advice for holiday marketing success:

  1. Make YouTube Shorts a central part of your holiday strategy

  2. Develop campaigns that link Shorts and long-form content

  3. Partner with creators rather than just making branded content

  4. Design specifically for the vertical format

  5. Implement direct links and clear conversion paths

  6. Test continuously throughout the campaign period

The holiday season is the most competitive time for retailers. With these new YouTube Shorts features, you've got powerful tools to cut through the noise and drive real results when it matters most.

Time to get those campaigns updated!

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