YouTube Shorts takes on TikTok by offering 45% of ad revenue to creators

YouTube Shorts is about to give creators a major reason to ignore TikTok. According to a recent information published in the newspaper
New York TimesYouTube will soon announce a new advertising revenue distribution model that could revolutionize the short Form Video, which could put other platforms and competitors such as TikTok, Instagram or Facebook in trouble with their so-called “Reels”.

Based on that information, YouTube will pay creators 45% of ad revenue. A figure somewhat lower than 55% of what traditional video content creators generally receive through the platform, but significant if we compare it with the rest of the alternative platforms.

In this sense, TikTok, Instagram or Facebook have a large fund to encourage their content creators, but none share advertising revenue on a continuous basis and above all, they are far from the 30 billion dollars in advertising revenue that YouTube paid creators in the last three years.

A big reason why TikTok and other short-form video apps haven’t yet come up with a similar revenue-sharing program is because it’s more complicated to figure out how to fairly split ad revenue on an algorithmically generated short-video feed. But also, it is unfeasible to embed an advertisement in the middle of a short video. It’s inconceivable to watch a 30-second video interrupted by an eight-second ad.

Earning money on YouTube or TikTok is only part of the equation. Youtube Shorts is a service optimized for uploading vertical videos with a maximum duration of 1 minute. Integrated within YouTube and allowing users to connect with new audiences with just a smartphone and the feature-specific camera in the YouTube app.

In the case of musical artists, this type of content is important and to a certain extent, YouTube Shorts have already become as popular as TikTok. In fact, 75% of YouTube’s 2 billion users are already regulars to their Shorts, and the effect is proven to have an impact. In fact, music artists with longer traditional videos report increased engagement for all of their content on YouTube after adding Shorts.

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