YouTube Shorts Creators to Get a Cut of Ad Revenue

September 21, 2022 By Raulf Hernes

(Image Credit Google)

YouTube's chief product officer, Neal Mohan, announced at the annual creator event "Made on YouTube" on Tuesday that from next year, Shorts creators will get a portion of ad revenue, distributed based on the videos that get the most views. According to CNBC, the move reflects the company's efforts to compete with TikTok in the short-video market. Furthermore, Mohan stated, "This is the first time real revenue sharing is being offered for short-term video at scale." However, YouTube did not give in-depth details on the payout. So, the question of how much Shorts creators will profit from the payout remains. YouTube Shorts

How will YouTube distribute ad revenue to Shorts creators?

CNBC reported that the company would first pool ad revenue from Shorts every month. Then, it will allocate an undisclosed percentage to creators from that. And then pay them 45% of that amount.

Shorts creators will be able to apply for YPP from 2023

Popular creators have been making money on YouTube's main site for so long by running ads in their videos and keeping a portion of that revenue. Google even launched the YouTube Partner Program (YPP) in 2007 to aid in that. Therefore, regular YouTube video creators earn 55% of their revenue from ads that play before or during their videos. YouTube Shorts

But, in Shorts, ads are not present in specific videos. Instead, they run in between videos and in Shorts feeds. Thus, for Shorts creators, the only way to make money is through a $100 million Shorts Fund launched in 2021. But Mohan said, "We started with the Shorts Fund as a first step, but creator funds can't keep up with the incredible growth we're seeing in the short-form video." So, from early 2023, Shorts-focused creators on YouTube "can apply to YPP by meeting a threshold of 1,000 subscribers and 10M Shorts views over 90 days."

More Details

The revenue-sharing move is likely because TikTok is gaining market share on YouTube by offering users an outlet to make short viral videos with music. Besides, in Q2, YouTube had the slowest rate of quarterly revenue expansion since Alphabet began breaking out the video unit's sales in Q4 of 2019. YouTube Shorts

On the other hand, CNBC reported that the company claimed to be testing monetization models for Shorts. Consequently, in the new revenue-sharing model on Shorts, creators will get the same amount of money regardless of whether their videos include copyrighted music, which requires YouTube to pay licensing fees.

By Raulf Hernes

If you ask me raulf means ALL ABOUT TECH!!

YouTube Shorts Creators to Get a Cut of Ad Revenue

How will YouTube distribute ad revenue to Shorts creators?

Shorts creators will be able to apply for YPP from 2023

More Details

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