Youtube Announces Shorts Monetization for Creators.
In a shocking turn of events, Youtube has announced that Shorts will be monetizable by 2023. Creators will now earn 45% of the money generated from ads that run on their Shorts. Youtube also confirms that you don't have to be part of their Youtube Partner Program to get your share of the pot. However, you still need to have 1 000 subscribers and have amassed about 10 million Shorts views in the last 3 months.
Creators will now earn 45% of the money generated from ads that run on their Shorts.
How Will It Work?
The process of determining who gets what is a bit different from what they have going on now for Youtube videos. It is of course a bad business move to run ads after every Short, no more than a one-minute video. Instead, Youtube plans to pool revenue from its ads at the end of each month and each creator will be paid based on their share of total Shorts views.
Tiktok and Instagram are still struggling to find a way to monetize their short videos. One reason for this is licensing.
What Does It Mean For Creators?
This is much-welcomed news for many short-video format creators whose income so far was based on sponsors if anything at all. YouTube has been trying to beat Tiktok at their own games for a while now. They established the Youtube Shorts Fund back in April of this year and now they are taking it a step further. Tiktok and Instagram are still struggling to find a way to monetize their short videos. One reason for this is licensing.
If you are familiar with Youtube monetization, you know that YouTubers earn 55% of ad revenue. However, the drop from the 55% that long-videos creators receive to the 45℅ short-videos creators will get is well justified. You see, one thing Tiktoks, Reels, and now Shorts are renewed for is the use of licensed content. This usually includes music and clips from movies or series. To combat any copyright infringement that could occur, Youtube will have to cover the price of licensing.
One thing that is not changing is rates, which will still defer from one region to the next. This is because advertisers pay different rates for different countries. Countries like the USA get top dollar for CPM because viewers from that region are more susceptible to ads. This of course is not concerned with the location of the creator but rather the location of their viewers. This is one reason why many foreign creators opt to create content in English over their mother tongue.
Youtube of course is investing a lot of money in Shorts to dominate the short-video market. But it is working for them so far. The platform generates about 30 billion views from 1.5 billion logged-in users every month.
YouTube was among the first platforms to find a way for creators to monetize their content back in 2007 with the launch of YouTube Partner Program. This has resulted in big YouTubers, both adults and kids, building multi-million dollar fortunes.
This move will surely open doors for many creators whose hard work will be rewarded. We see a lot of potential in Shorts for content creators, and with that, we are working hard to add Youtube to the long list of apps Nuelink can manage on your behalf.