YouTube launched Shorts in 2020 to compete with TikTok.
“This expansion has launched a new trend on the platform: ‘the rise of the multiformat creator,’” YouTube says in a press release.But creators making more short-form videos isn’t a coincidence — YouTube really, really wants them to and has been offering payments to creators to sweeten the deal and lure them away from other platforms. Last year, the company launched athat paid creators up to $10,000 per month when they make popular videos.
When monetizing longer YouTube videos, ads play before or during the video, and creators get a cut of the revenue. But instead of running an ad in front of every short clip, YouTube has had to figure out other ways to help creators monetize their short-form videos. As Shorts become a bigger part of viewership on YouTube, the company will need to make up for the reduced ad revenue.
“We are experiencing a slight headwind to revenue growth as Shorts viewership grows as a percentage of total YouTube time,” Alphabet CFO Ruth Porat said in April. “We are testing monetization on shorts, and early advertiser feedback and results are encouraging.”from February, YouTube said it was exploring additional ways for creators to make money, including branded content and the ability to shop from a Shorts video.
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