YouTube to challenge TikTok by sharing ad revenue with Shorts creators

21 Sep 2022

Image: © Koshiro/Stock.adobe.com

Eligible creators will be given a share of 45pc of the ad revenue generated on YouTube Shorts.

In a bid to compete with TikTok, YouTube is planning new ways for short-video creators to make money off its platform.

The video giant announced a series of changes this week to its Partner Programme, which include sharing ad revenue with creators on YouTube Shorts, the TikTok competitor launched in 2020.

The existing YouTube Partner Programme requires creators to have more than 1,000 subscribers and at least 4,000 public watch hours within the past 12 months.

The changes planned for early 2023 will allow Shorts creators to join this programme if they have 1,000 subscribers and 10m views on the platform over a 90-day period.

“These new partners will enjoy all the benefits our programme offers, including the various ways to make money like ads on long-form and Fan Funding,” YouTube said.

From early next year, revenue from the ads that run between videos in the YouTube Shorts feed will be added together and used to both reward Shorts creators and cover the costs of music licensing.

Creators in the programme will receive 45pc of the ad revenue, distributed based on their share of total Shorts views.

“These changes reflect the diversity of our growing creator community,” YouTube said. “Creators can choose the one option that best fits their channel while we maintain the same level of brand safety for advertisers.”

YouTube and TikTok have been creating new ways for creators to make money off their platforms as competition continues in the social video space.

In May, TikTok announced a new advertising programme called TikTok Pulse to allow creators who have at least 100,000 followers to get ad revenue, similar to YouTube’s Partner Programme.

YouTube suffered a hit to its revenue last quarter as many tech companies flagged issues in the global ad market. In Google’s second-quarter earnings, YouTube ad revenue rose by only 4.8pc compared to an 84pc jump in the same period last year. This marked its slowest ad growth in more than two years.

10 things you need to know direct to your inbox every weekday. Sign up for the Daily Brief, Silicon Republic’s digest of essential sci-tech news.

Leigh Mc Gowran is a journalist with Silicon Republic

editorial@siliconrepublic.com