YouTube is developing a new process for monetizing Shorts, the new short form mobile device friendly content in the app. The platform confirmed that the process will come into effect on February 1st.
“Starting February 1st, 2023, monetizing partners will be able to earn money from ads that are viewed between videos in the Shorts Feed. This new revenue sharing model will replace the YouTube Shorts Fund.”
YouTube first shared the news of a new program last September. The challenge with short form videos on the app is in how to monetize the videos as you can’t directly monetize them through pre- or mid-roll ads like regular video uploads. In China, the local version of TikTok now generates the majority of its income via in-stream commerce, but this hasn’t seen the same success in in the West. Alternative monetization processes need to be established in order to keep the allure for top creators posting to the platform.
Most platforms have made creator funds to maintain a way for creators to monetize content in their apps, but that’s not sustainable as these systems also see payments decline as more creators look to draw money from the fund.
But YouTube’s payment model could be a more sustainable process, with the cumulative funds from Shorts ads being allocated to a much larger pool, and YouTube then splitting 45% of that total amount among Shorts creators, based on respective views. That means that the payouts will grow as Shorts does, while the funding is not capped!
Will this work for YouTube? It’s a good sign that YouTube is looking to pay out its creators in a fair way. So how do you apply? Creators will be able to apply for a cut of Shorts ad revenue if they have over 1,000 subscribers, and have seen 10 million Shorts views over the preceding 90 days. Once you reach those benchmarks, YouTube will enable you to sign up to the program, with the full funding split based on performance.
It will be interesting to see how this process works out and if other platforms will follow suit.
