diberry - 5:37 pm on Sep 7, 2013 (gmt 0)
I don't think it means your site is necessarily demoted*. I think it just means YouTube has so much more authority than your site right now that it's going to rank higher. So, your site would need more authority in order to outrank the videos. And while no one's sure precisely what comprises "authority", it's probably natural inbounds, good coding, good content that's readable to bots, and it's looking more and more like Google is tracing some forms of user metrics.
If you can find a way to get some Pinterest traffic - and if you're selling decorative widgets, that sounds very photogenic - Google can follow those links and will definitely reward any pages that get repinned a lot.
*I know you said you've been losing rankings, and that COULD mean demotion, but it could also just mean Google thinks your competitors are doing something better.