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YouTube to give Shorts creators 45 percent of ad sales

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YouTube revealed a new way for its creators to earn money through its short-form video Shorts.
File photo: YouTube Shorts

Addressing competition with TikTok

According to an article by Reuters, the streaming platform announced on September 21 its plan to introduce advertising on its video feature Shorts.

Through this, video creators will be given 45 percent of the revenue.

That compares with its standard distribution of 55 percent for videos outside of Shorts, and TikTok's USD 1 billion funds for paying creators, the report noted.

With TikTok rising to fame, YouTube faced hurdles in the market as its competition gained 1 billion monthly users.

YouTube then came up with its Shorts feature which attracted more than 1.5 billion monthly viewers.

And with the announcement of the new revenue sharing scheme, creators like Kris Collins, known as Kallmekris, really lauded the move.

Other platforms are focused on getting people their 15 seconds of fame, which is great. But YouTube is taking a different approach. They're helping creators make stuff in multiple formats, she said about the revenue-sharing policy.

In April, YouTube also created a USD 100 million fund to encourage its users to produce short clips to keep its creators.

This revenue-sharing program is seen to be a better approach to attracting and retaining talents than the fund, which is also something that TikTok has yet to match.

YouTube Vice President Tara Walpert Levy noted the company is currently sharing a smaller portion of sales with Shorts creators to offset the investment made in developing the feature.

Reuters said that Google generated USD 14.2 billion in YouTube ad sales during the first half of this year, up 9 percent from the same period in 2021.


File photo: YouTube logo

But the most recent quarterly ad sales reflected the slowest growth since disclosure of that data began three years ago, it noted.

Factors that affected this are the global economic factors, and TikTok becoming one of its main competitors.

Revenue for creators through YouTube Shorts. What do you think about this?

Source: Reuters

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