YouTube Poised To Battle TikTok, Rolls Out Huge Ad Incentive To Creators
Google-owned video sharing platform, YouTube, on Tuesday revealed that it would introduce advertising on its video feature Shorts and give video creators 45% of the revenue. This is seen by most analysts as a giant effort to tackle a rampaging Tik Tok.
YouTube Chief Product Officer, Neal Mohan, confirmed the new development in a media release.
YouTube Partner Program is an initiative from YouTube that allows Creators monetize videos and unlock features.
YouTube said that Shorts creators will be able to join the Partner Program if they have at least 10 million views on the platform over the last 90 days.
“I’m proud to say this is the first time real revenue sharing is being offered for short-form video on any platform at scale,” said Neal.
In April, YouTube created a $100 million fund to entice creators to make bite-sized videos in its bid to hang onto talent. The new revenue-sharing plan, first reported by the New York Times, is meant to be a bigger and more sustainable lure than the fund and something TikTok has yet to match.
Google generated $14.2 billion in YouTube ad sales during the first half of this year, up 9% from the same period in 2021.
YouTube also shared that this update to the Partner Program will enable the platform to license more music for use in Shorts, which could help encourage creators to use Shorts more often. Creators in the program will be compensated the same, regardless of whether they use licensed music.