TECHNOLOGY

YouTube is going to give Shorts creators 45% of ad sales as a challenge to TikTok.

In the first half this year, YouTube ads sales reached $14.2 billion.

LOS ANGELES YouTube has revealed a new way to make money with short-form videos, as it faces increasing competition from TikTok.

Google’s streaming service (GOOGL.O), announced Tuesday that it will offer advertising on Shorts video features and pay video creators 45% of its revenue. This compares to its standard distribution of 55% on videos other than Shorts and TikTok’s $1 billion fund for creators.

Hairstylist-turned-YouTube-creator Kris Collins, who goes by Kallmekris, lauded YouTube for offering revenue-sharing for Shorts.

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She said that other platforms are focused on gaining people their 15 seconds fame. YouTube has a different approach. YouTube is helping creators create content in multiple formats.

TikTok is the internet’s most popular video site. It was founded in 2012 and hosts lip-sync videos and dance videos. The app has since grown to 1 billion monthly users.

YouTube responded with Shorts in 2020, a series of minute-long videos that attracted more than 1.5 billion viewers monthly.

YouTube launched a $100 million fund in April to encourage creators to create the small-sized videos. This was to retain its talent. First reported by The New York Times, the new revenue sharing plan is meant to be a stronger and more sustainable lure than the existing fund, and something TikTok still has not matched.

Vice President Tara Walpert Levy stated that YouTube shares a smaller percentage of its sales with Shorts creators in order to offset the significant investment it made in developing the feature.

Google generated $14.2 Billion in YouTube advertising sales in the first half of 2018, up 9% over the same period 2021.

Related: YouTube has introduced a separate page for podcasts

The most recent quarterly ad sales showed the slowest growth in three years since data disclosure began. Financial analysts believe TikTok is also a factor, despite global economic factors being at play.

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