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YouTube gives 45% of ad sales to short video creators


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YouTube has launched a new way for creators to make money from short-form videos as it faces intensifying competition from Tiktok.

Google’s streaming service announced on Tuesday that it will introduce advertising into its short videos and give video creators 45% of the revenue. The measure compares to its standard 55% distribution for non-Shorts videos and Tiktok’s $1 billion fund for paying creators.

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Hairstylist-turned-YouTube content creator Kris Collins, known as Kallmekris, praised YouTube for offering revenue sharing for Shorts.

“Other platforms are focused on getting people to their 15 seconds of fame, which is great,” she said. “But YouTube is taking a different approach. They’re helping creators make things in a variety of formats.”

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The internet’s dominant video site is struggling to compete with Tiktok, an app that started hosting lip-sync and dance videos and gained 1 billion monthly users.

YouTube responded in late 2020 with Shorts, one-minute videos that attract more than 1.5 billion monthly viewers.

In April, YouTube created a $100 million fund to entice creators to make the short videos. The new revenue-sharing plan should be a bigger, more sustainable attraction than the fund and something Tiktok doesn’t yet have.

YouTube is sharing a smaller proportion of sales with the creators of Shorts to offset their significant investment in developing the feature, said vice president Tara Walpert Levy.

Google generated $14.2 billion in YouTube ad sales in the first half of this year, up 9% from the same period in 2021.

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