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YouTube wants to provide direct monetization for short films, a major shift in the short content wars

Will this deal a fatal blow to TikTok and its short-video leadership?

It might sound like an extreme move, but YouTube is ramping up its efforts to recruit top short-form creatives through YouTube Shorts, and according to the New York Times, YouTube will soon add a new direct monetization option to Shorts that will Provides a clearer path for short-form content creators to earn money purely for their clips.

According to the New York Times:

“YouTube will reportedly bring ads to Shorts Meet two people who are familiar with the situation. The company plans to pay creators 45 percent of advertising fees, according to a person familiar with the matter. Traditionally, YouTube creators get 55% of their revenue from ads that play before and during a video. “

YouTube will also lower the barriers to entry into the YouTube Partner Program, allowing more creators to make money from YouTube ads, according to leaked internal audio.

Currently, you need to reach Have a total of 4,000 hours of public watch time on your channel over the past 12 months to be eligible to advertise on your YouTube content, and you’ll need more than 1,000 subscribers to complete the YPP cut.

These requirements may not be integrated with Shorts, as Shorts’ total watch time is generally much lower, and lower subscriber counts will also open the door for more early creators to build their presence in Shorts.

Combined, this could make YouTube Shorts a more attractive prospect for short-form video creators. If you also consider that Shorts content is now watched by 1.5 billion monthly YouTube users, and has seen strong growth over the past year, the case for building on YouTube and making money from your content is obviously strengthened by the proposed expansion .

Then, YouTube also provides effective progressive monetization. Monetizing short-form content is hard, but YouTube pays creators billions of dollars each year through its partner program for regular uploads of videos, where pre-roll and mid-roll ads can be inserted into longer clips.

This provides a direct link between content and associated ad revenue, and if YouTube can attract more creators with Shorts for their initial revenue share, then more of them will also build their traditional YouTube channels and translate them into Big Earners Their Shorts fame extends YouTube’s reach.

But what will YouTube do? How to attach a specific ad to a specific Shorts clip – Because the clips themselves are usually only a few seconds long, you can’t really ask people to watch a 15-second Shorts clip with a 30-second pre-roll.

correct?

I suspect this has something to do with it:

In recent weeks, a growing number of YouTube users have raised concerns about such ad clusters, where as many as 10 non-skippable ads could be attached to a video.

YouTube has respond Some of these complaints were addressed via Twitter, explaining that these “bumper” ads were only a maximum of 6 seconds long – so while it might seem like a lot of individual ads, it doesn’t really matter how long those ad clusters actually played.

But what if YouTube had been adding more of these ads in preparation for the upcoming Shorts shift? What if people could see more of these “bumper” ad swarms because YouTube has been working so hard to build very short promotional inventory so it can attach a single 5-second ad to specific shorts in its app?

Perhaps, this solves the dilemma of direct monetization, as a super-short ad linked to a specific video or creator can actually see direct revenue being distributed to that individual account as well.

This seems to be where YouTube is headed – it would be a valuable addition to the Shorts ecosystem, offering immediate monetization potential for Shorts users.

But then again, if this is the route YouTube is taking, and it shows any promise, that would also open the door for TikTok and Meta (via Reels) to add the same.

In this case, it may not be a long-term differentiator, but it still shows that creators can make more money on YouTube than in other apps.

As mentioned earlier, YouTube brings Advertising revenue will reach $28.8 billion by 2021, with roughly half of that redistributed to creators through the YPP revenue-sharing program. TikTok, with its Creator Fund and other brand partner options, is nowhere near that potential, and Meta, which offers advanced monetization on Instagram and Facebook through longer videos and other offerings, is nowhere near that potential for creator revenue potential level.

Offering alternative revenue avenues options, such as brand sponsorships through the Creators Marketplace tool, does provide some additional value. But on YouTube, creators can get paid purely for creating content. No separate brand deals or endorsements are required – now, YouTube is clearly the best option for video creators to make money exclusively for their creative talent.

Shorts ads would complement this, while also helping to steer top stars into more lucrative career opportunities.

By itself, this may not be the death of TikTok, but history tells us that eventually people go after money.

Vine stars leave for more lucrative opportunities (many become millionaires via YouTube), while top game streamers often move platforms for exclusive content deals, despite a massive following in either app By.

These transitions are not always successful. For example, popular streamer Ninja moved from Twitch to Microsoft-owned Mixer in 2019 in a deal worth up to $30 million, but in the end, Ninja couldn’t bring his fans to Microsoft’s gaming platform for various reasons.

Examples like this may be the reason why platforms are reluctant to pay too much for exclusive contracts, instead focusing on building self-sustainable monetization ecosystems from the ground up to attract more creators.

But again, every innovation can be replicated, which can be difficult to truly differentiate beyond providing greater monetization potential in other ways.

YouTube is leading the way here, and it will be interesting to see how Shorts’ direct monetization adds to that traction.

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