YouTube in challenge to TikTok to give Shorts creators 45% of ad sales
- 2 years ago
As TikTok's market share grows, YouTube introduced a new way for creators to monetize short-form video.
Shorts, The streaming service, which is owned by Google, revealed on Tuesday that it would start running ads on its video feature Shorts and give video creators 45% of the revenue. That compares with its standard distribution of 55% for videos outside of Shorts, and TikTok's $1 billion fund for paying creators.
Hairstylist-turned-YouTube-creator Kris Collins, who goes by Kallmekris, lauded YouTube for offering revenue-sharing for Shorts.
"Other platforms are focused on getting people their 15 seconds of fame, which is great," she said. "But YouTube is taking a different approach. They're helping creators make stuff in multiple formats."
The internet's dominant video site has struggled to compete with TikTok, the app that got its start hosting lip-sync and dance videos and has subsequently burgeoned to 1 billion monthly users.
YouTube responded in late 2020 with Shorts, minute-long videos that attract more than 1.5 billion monthly viewers.
In April, YouTube created a $100 million fund to entice creators to make the bite-sized videos in its bid to hang onto talent. The New York Times broke the news of the new revenue-sharing plan, which is intended to be a bigger and more sustainable lure than the fund and something TikTok hasn't yet been able to match.
According to Vice President Tara Walpert Levy, YouTube is distributing a smaller percentage of profits to Shorts creators in order to balance out the significant investment it made in creating the service.
Google generated $14.2 billion in YouTube ad sales during 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 disclosure of that data began three years ago. Though global economic factors are at play, financial analysts have said TikTok also is a factor.
Source:
https://www.reuters.com/technology/youtube-challenge-tiktok-give-shorts-creators-45-ad-sales-2022-09-20/
Shorts, The streaming service, which is owned by Google, revealed on Tuesday that it would start running ads on its video feature Shorts and give video creators 45% of the revenue. That compares with its standard distribution of 55% for videos outside of Shorts, and TikTok's $1 billion fund for paying creators.
Hairstylist-turned-YouTube-creator Kris Collins, who goes by Kallmekris, lauded YouTube for offering revenue-sharing for Shorts.
"Other platforms are focused on getting people their 15 seconds of fame, which is great," she said. "But YouTube is taking a different approach. They're helping creators make stuff in multiple formats."
The internet's dominant video site has struggled to compete with TikTok, the app that got its start hosting lip-sync and dance videos and has subsequently burgeoned to 1 billion monthly users.
YouTube responded in late 2020 with Shorts, minute-long videos that attract more than 1.5 billion monthly viewers.
In April, YouTube created a $100 million fund to entice creators to make the bite-sized videos in its bid to hang onto talent. The New York Times broke the news of the new revenue-sharing plan, which is intended to be a bigger and more sustainable lure than the fund and something TikTok hasn't yet been able to match.
According to Vice President Tara Walpert Levy, YouTube is distributing a smaller percentage of profits to Shorts creators in order to balance out the significant investment it made in creating the service.
Google generated $14.2 billion in YouTube ad sales during 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 disclosure of that data began three years ago. Though global economic factors are at play, financial analysts have said TikTok also is a factor.
Source:
https://www.reuters.com/technology/youtube-challenge-tiktok-give-shorts-creators-45-ad-sales-2022-09-20/