YouTube in Challenge to TikTok to Give Shorts Creators 45% of Ad Sales

By Dawn Chmielewski and Paresh Dave

YOUTUBE UNVEILED a new way for creators to make money on short-form video, as it faces intensifying competition from TikTok.

The Google-owned (GOOGL.O) streaming service announced recently that it would

introduce advertising on its video feature Shorts and give video creators 45% of the

revenue. That compares with its standard distribution of 55% for videos outside of Shorts, and TikTok's $1 billion fund for paying creators.

Hairst ylist-turned -You Tu be creator Kris Collins, who goes by Kallmekris, lauded YouTube for off ering revenue-sharing for Shorts. "Other platforms are focused on getting people their 15 seconds of fame, which is great," she said. "But YouTube is taking a diff erent approach. They're helping creators make stuff in multiple formats."

The internet's dominant video site has struggled to compete with TikTok, the app that got its start hosting lip-sync and dance videos and has subsequently burgeoned to 1 billion monthly users.

YouTube responded in late 2020 with Shorts, minute-long

videos that attract more than

1.5 billion monthly viewers.

In April, YouTube created a $100 million fund to entice creators to make the bite-sized videos in its bid to hang onto talent. The new revenue-sharing plan, fi rst 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.

YouTube is sharing a smaller proportion of sales with Shorts creators to off set its signifi cant investment in developing the feature, Vice President Tara Walpert Levy said.

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

But the most recent quarterly ad sales refl ected the slowest growth since disclosure of that data began three years ago. Though global economic factors are at play, fi nancial analysts have said TikTok also is a factor..

https://www.reuters.com/ technology/youtube-challengetiktok-give-shorts-creators-45ad-sales-2022-09-20/ Image credit: marinelifeofmumbai.in