In the first quarter of 2022, YouTube Shorts videos reached 30 billion daily views, four times the number in the first quarter of 2021.
Additionally, YouTube confirmed that it is now testing ads in Shorts, which will eventually allow creators to monetize short videos.
This was revealed during parent company Alphabet’s Q1 2022 quarterly earnings call.
The decision to advertise in Shorts was not based on a 4x increase in views. Instead, it was caused by YouTube not meeting its revenue goals.
To be sure, YouTube’s revenue last quarter was impressive, surpassing even the first quarter of 2021.
Since YouTube missed its targets of $6.87 billion and $7.51 billion, the company must make up for it to appease shareholders.
Shorts ads are YouTube’s solution to taking revenue growth to new heights. In turn, creators’ earnings could hit new highs.
Here are the highlights from Alphabet’s Q1 2022 earnings call regarding YouTube Shorts.
YouTube Confirms Ad Coming Soon to Shorts
Ruth Porat, CFO of Alphabet and Google, confirmed the ad testing in YouTube Shorts:
“Our revenue growth is facing slight headwinds as Shorts viewership grows as a percentage of total YouTube time. We are testing the monetization of short films, and early advertiser feedback and results are encouraging.”
Short-form ads will enable YouTube Partner Program creators to earn more on the platform.
Currently, the only way to make money by making Shorts is through YouTube’s Shorts Fund. The Shorts Fund allocates $100 million to pay creators for viral content.
All creators, even if they are not part of the YouTube Partner Program, can get paid from the Shorts Fund.
In fact, 40% of creators receiving Shorts Fund payments in 2021 are not part of the YouTube Partner Program.
It’s unclear if the short fund will continue once the ad is rolled out more broadly.
Profit Potential – YouTube Shorts vs.Tik Tok
Ads can significantly enhance the value proposition of YouTube Shorts for creators.
Excluding sponsorships and merchandising, when it comes to making money from short videos, there are limited options on the web.
Like YouTube, TikTok has a fund that pays creators for popular content.
Although creators report dissatisfaction with the revenue distribution, TikTok is less transparent about how much it pays.
Here’s a tweet from @SuperSaf, who has 400,000 followers on TikTok, sharing how he feels about revenue sharing:
Here’s how much I’ve earned from the TikTok Creators Fund since April 2021, when more than 25 million views
TikTok has a lot of potential as a platform for creators, but I agree @hankgreen They really need to sort out their revenue share ►https://t.co/cg8FNVqumn pic.twitter.com/hhOz9vjhiZ
– Safwan AhmedMia (@SuperSaf) January 21, 2022
he Reference video From YouTuber Hank Green, this is a video article that breaks down how TikTok pays creators.
Green’s proof that YouTube is better at paying creators for content suggests that TikTok’s creator fund isn’t the best way to pay people for their work.
It will be interesting to see if any of the popular TikTokers make their way to YouTube once ads in Shorts roll out to everyone.
source: YouTube
Featured image: Alessandro Biascioli/Shutterstock
