YouTube versus TikTok : Shorts Creators To Get 45% of Ad Sale

YouTube Versus TikTok: The move is ostensibly spurred by the stiff competition it faces from TikTok Faced with competition from TikTok, YouTube will be disbursing 45% of its ad sales to Shorts video creators apart from a cut down other benefits.From early 2023, creators can apply to the YPP (YouTube Partnership program)if they have 1,000 subscribers and 10 million views in 90 days. The creators can benefit from the programme offers, including various ways to make money through ads on long-form and Fan Funding.Ads will be run between videos in the Shorts Feed. So every month, revenue from these ads will be given as a to reward Shorts creators, helping them cover costs of music licensing.From the overall amount allocated to creators, they will keep 45% of the earnings, distributed based on their share of total Shorts views. The earning share remains the same, no matter if they use music or not.

 

Other platforms like TikTok are focused on getting people their 15 seconds of fame, which is great. But YouTube is taking a different point of view. They're helping creators make videos 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 expanded to 1 billion monthly users.

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

 YouTube created a $100 million fund to entice creators to make the bite-sized videos in its offer to hang onto talent. The new earning-sharing plan, first reported by the New York Times, is meant to be a large 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.

But the most recent quarterly ad sales absorb the slowest growth since disclosure of that data began three years ago. Though the world's economic factors are at play, financial analysts have said TikTok also is a factor.

As YouTube tries to drive out TikTok in the short-video market, the Google owned company says it will start to give a bigger slice of advertising revenue to popular creators.

 At the annual creator event “Made on YouTube,”chief product officer for YouTube, said that at the starting of next year, the company will pay a portion of revenue from Shorts, and it will be distributed on the basis of videos that get the most views.

This is the first time real time revenue sharing is being offered for short-term video at scale.

It is not yet clear how much profitable the this will be for Shorts creators because YouTube is providing only basic information on the payouts. YouTube said that every month it will combine ad revenue from Shorts. Of that sum, a confidential percentage is allocated to creators, and YouTube will pay them 45% of that amount.

Popular creators have long been able to make money on YouTube’s main site by running ads in their videos and keeping a part of the revenue. Google launched the YouTube Partner Program (YPP) in 2007 to make the content creator enable for better engagement and subscribers.

YouTube is feeling the pressure from TikTok, which has been obtaining market share by providing a way out for people to make short viral videos with music. In the second quarter, YouTube saw its slowest rate of quarterly revenue growth since Alphabet starts breaking out the video unit’s sales in the fourth quarter of 2019. The company said it was trying out monetization models for Shorts, CFO Ruth Porat said previously that YouTube was being challenged by changes in consumer behavior that favored short videos.

In the new revenue-sharing model on Shorts, creators will receive the same amount of money anyway whether their videos include copyrighted music, which requires YouTube to pay licensing fees.

Regular YouTube video creators can earn 55% of revenue from ads that play before or during their videos. In YouTube Shorts, ads aren’t attached to specific videos but run in between video and in Shorts feeds.

Shorts has 30 billion daily views and 1.5 billion logged-in viewers watching a month, which is constant from the numbers the company shared in April.

There is no surprise YouTube is the number one video-sharing platform in the world. Boasting its 2.2 billion Monthly, it’s the one stop platform for all things entertaining. But since the launch of the fun mobile apps like TikTok, YouTube might have a competitor on its hands. In just 3 years, TikTok's annual users expanded from 133 million to 1 billion.

 

 Conclusion

As you can see, there’s no doubt YouTube and TikTok can help you direct your business to the next level. However, the most appropriate platform for you depends on your target audience, your marketing goals, and the type of videos you want to make.  If you’re looking to target young or Gen Z audiences, then TikTok is a perfect fit. But if you’re targeting a larger portion of the public made up of both the young and old, then YouTube should be the most important part of your marketing mix.

YouTube is excellent for developing brand awareness, acquiring leads, and increasing conversions. On the flip side, TikTok is more suitable for creating a buzz about your brand, products, trends, or social activities.