YouTube Is Monetizing Shorts With 45% Revenue Split

YouTube in competition with TikTok unveiled a new way for creators to make money on short-form videos, giving creators 45% of the ad sales.

For more than a decade, YouTube has held a prominent position as a video streaming platform. On Tuesday, it revealed plans to incorporate advertising into its short-video format known as “shorts” and will allocate 45% of the ad revenue to video creators.

TikTok’s $1 Billion Fund

Compared to the standard distribution of 55% for the long-form videos, and TikTok’s $1 billion fund for the creators.

YouTube creator Kris Collins, whose channel name is “Kallmekris”, appreciated the efforts of YouTube for giving the ad revenue generated by Shorts.

The internet’s most dominant video-streaming site has struggled to compete with the tech giant, TikTok, the app that got fame from hosting the short-form lip-sync and dance videos has now risen its monthly users to a whopping 1 billion.

YouTube took the charge in late 2020 introducing the “Shorts”, the 1 minute videos that attract more than 1.5 billion monthly viewers.

YouTube’s $100 Million Fund

In April, YouTube released a $100 million fund to attract and engage creators to make short-form videos in an attempt to hang onto talent. The all-new ad-revenue-sharing plan is intended to be a greater and more sustainable interest than the fund and it is something that TikTok has yet to match.

YouTube is sharing a significant portion of its ad sales with Shorts creators to offset its significant investment in developing the feature, Vice President of YouTube, Tara Walpert Levy said.

Google generated more than $14 billion in YouTube ad sales during the first half of this year. It increased up to 9% from the same period in 2021.

But recently the quarterly ad sales were the slowest since the disclosure of that data began. Global economic factors played a huge role, and financial analysts have said TikTok also is a major factor.

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