YouTube to give Shorts creators 45% of ad sales
YouTube has announced a new way for creators to monetize short-form videos as it faces increasing competition from TikTok.
-owned streaming service announced Tuesday that it will add ads to its Shorts video feature and give video creators 45% of the revenue. This compares to the standard 55% allocation for non-Shorts videos and TikTok's $1 billion fund to pay creators.
Hairdresser-turned-YouTube creator Kris Collins, who goes by the name Kallmekris, praised YouTube for offering revenue sharing for Shorts.
"Other platforms are focused on giving people 15 seconds of fame, which is great," he said. "But YouTube is taking a different approach. They're helping creators produce something in multiple formats."
The internet's dominant video site has struggled to compete with TikTok, which started hosting lip-syncing and dance videos and later grew to 1 billion monthly users.
YouTube responded in late 2020 with Shorts, minute-long videos that attracted more than 1.5 billion monthly viewers.
In April, YouTube created a $100 million fund to entice creators to make short videos in an effort to retain talent. The new revenue-sharing plan, first reported by the New York Times, is intended to be a bigger and more sustainable attraction than the fund, and something TikTok has yet to match.
Vice President Tara Walpert Levy said YouTube is sharing a smaller portion of sales with Shorts creators to offset the significant investment it has made to develop the feature.
Google (NASDAQ:GOOGL) generated $14.2 billion in YouTube ad sales in the first half of this year, up 9% from the same period in 2021.
But the most recent quarterly ad sales reflected the slowest growth since that data began being released three years ago. While global economic factors played a role, financial analysts said TikTok was also a factor.
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