YouTube has reportedly revealed a new option for creators and influencers to monetize on short-form videos as it faces heavy competition from TikTok, the app that began hosting lip-sync and dance videos and has since grown to 1 billion monthly users.
The streaming juggernaut stated that it would begin broadcasting advertisements on its video feature Shorts and would pay video creators 45% of the proceeds. This contrasts with TikTok's usual creator payment rate of 55% for videos outside of Shorts and its USD 1 billion funds for paying creators.
Hairstylist cum YouTube creator, Kris Collins a.k.a. Kallmekris, praised YouTube for sharing earnings for Shorts. She remarked that other platforms are concentrated on giving people their 15 seconds of fame, which is terrific. YouTube, on the contrary, is taking a different strategy by assisting creators in producing content in a variety of media.
Notably, in late 2020, YouTube responded with Shorts, minute-long videos that have over 1.5 billion monthly visitors. Following that, in April 2022, YouTube created a USD 100 million fund to encourage producers to develop bite-sized videos in an effort to retain talent. However, TikTok has failed to match the new revenue-sharing model, which is supposed to be stronger and indicates more sustainable appeal than the fixed fund approach.
Youtube’s Vice President Tara Walpert Levy stated that the online video sharing giant is paying a reduced percentage of sales with Shorts creators to offset its considerable investment in developing the service. Besides, Google earned USD 14.2 billion in YouTube ad revenue in the first half of this year, a 9% increase over the same period in 2021.
However, since data disclosure commenced three years ago, the most recent quarterly ad revenue saw the least rise. Although global economic dynamics are at work, financial analysts believe TikTok is also a major influence.