Shorts creators should receive 45 percent of the advertising revenue
YouTube has introduced a new advertising revenue sharing model. In the future, the video platform wants to transfer 45 percent of its income from YouTube Shorts to the creators. The announcement is seen as a groundbreaking move in terms of monetization to outperform competitor TikTok.
Since TikTok has been gaining more and more market share, YouTube has faced a strong opponent. In order to be able to keep up with the competition, the video platform has therefore introduced a new model for sharing advertising revenue.
The company shared that in one official blog post With. Accordingly, the authors of short videos, the so-called YouTube shorts, will receive up to 45 percent of the corresponding advertising revenue in the future. The company hopes to outperform TikTok in the short video market.
Contents
YouTube Shorts: 45 percent of ad revenue for creators
YouTube’s growth rate in the second quarter of 2022 was the slowest since parent company Alphabet began disaggregating revenue in 2019. This is probably mainly due to the increasing competition around TikTok.
In order to be able to keep up and be attractive to creators, the company therefore wants to pass on a large part of its advertising revenue to the creators of short videos via YouTube Shorts. This was announced by Neal Mohan, YouTube’s Chief Product Officer, at the annual event “Made on YouTube” on.
From next year, the company wants to share Creator with up to 45 percent of the advertising revenue. The basis for the payments is, among other things, the number of views of the short videos. “This is the first time that true revenue sharing for short videos has been offered at scale,” said Mohan.
Exact earnings still unclear
However, it’s still unclear how lucrative the new revenue-sharing model for YouTube Shorts will actually be. Because YouTube has only disclosed limited information so far.
The company wants to summarize the advertising revenue from the short videos on a monthly basis, but it is not yet clear how high the amount is, of which the authors should receive 45 percent. The company launched the YouTube Partner Program (YPP) back in 2007, which allows creators to earn money from their videos by advertising.
YouTube Shorts: Creators can apply for YPP
To date, however, YouTube Short has only been able to generate income from a USD 100 million short fund. However, that is about to change. The video platform explained:
From early 2023, short film makers can apply for the YPP if they reach a threshold of 1,000 subscribers and 10 million short film views within 90 days.
The revenue should remain the same regardless of whether the short videos contain copyrighted music. For comparison: With “normal” YouTube videos, users earn 55 percent through advertisements that run before or during the videos. For shorts, ads should appear between videos and in the feed.
Also interesting:
