YouTube Shorts and TikTok have become dominant players in the short-form video space, captivating audiences worldwide. However, with the recent launch of YouTube Shorts monetization, small businesses, and creators are eager to understand the revenue potential and how it compares to the TikTok Creator Fund. In this blog post, we'll explore why small businesses and creators should embrace YouTube Shorts, focusing on the monetization model and the unique opportunities it presents.
Access to A vast Audience
YouTube remains one of the largest video-sharing platforms globally, and the introduction of Shorts has expanded its reach further. With 1.5 billion monthly viewers and 30 billion daily views, Shorts offers access to a vast audience base. This exposure can significantly boost the visibility of small businesses and creators, helping them gain recognition and expand their reach beyond other platforms.
The Pool-Based Model
YouTube Shorts represents a new category within the YouTube ecosystem, and its monetization style differs from long-form videos. YouTube aims to align incentives between viewers, creators, advertisers, and music partners, recognizing that the traditional model of pre- and mid-roll ads doesn't work for short-form videos. Shorts monetization operates on a pool-based model, ensuring that as Shorts grows, everyone benefits.
Shorts monetization operates on a pool-based model, ensuring that as Shorts grows, everyone benefits.
Shorts monetization doesn't attach ads to specific video
s, so CPM isn't used. Instead, earnings from ads between YouTube Shorts videos are combined into a creator pool. Creators receive 45% of their allocated revenue based on the total number of views and music usage of Shorts watched. Although the term for Shorts monetization hasn't been defined yet, creators will have a separate line item to track their earnings.
Stability and Global Availability
While TikTok's algorithmic challenges and concerns over data privacy have caused uncertainties for creators, YouTube has a proven track record of stability and reliability. With its long-standing Partner Program, YouTube has fostered a supportive environment for creators to build their channels and monetize their content.
In contrast to the bans TikTok has faced in certain countries, YouTube Shorts enjoys global availability. This factor alone makes YouTube Shorts an attractive platform for small businesses and creators who want to reach a broader audience without geographical limitations. By leveraging YouTube Shorts, businesses can tap into a worldwide user base and increase their brand exposure significantly.
Creators, Advertisers, and YouTube's Incentives
YouTube describes Shorts monetization as a partnership between creators and the platform. While earnings may be slow initially, they are expected to grow as more Shorts creators join and advertisers become more comfortable with the format. All stakeholders are incentivized to make Shorts a success, fostering an environment for creators and small businesses to monetize their content effectively.
Apart from the monetization model, there are other factors to consider when choosing between YouTube Shorts and TikTok. YouTube has a more diverse user base, spanning all age groups, while TikTok's user base is predominantly younger. This demographic difference can impact the type of content that performs well and, ultimately, the earning potential for creators. Additionally, competition on TikTok is fierce due to its popularity, while YouTube Shorts' established user base and search functionality may offer new creators a better chance to gain traction.
YouTube has a more diverse user base, spanning all age groups, while TikTok's user base is predominantly younger.
With the launch of YouTube Shorts monetization, the platform is providing new opportunities for small businesses and creators to earn money and build their careers. Although the revenue potential is still uncertain due to the different monetization models, YouTube's pool-based approach ensures that everyone benefits as Shorts grows. By leveraging the established user base, diverse demographics, and search functionality of YouTube, small businesses and creators can tap into a wider audience and increase their earning potential. As YouTube Shorts continues to evolve, it will be fascinating to see how it stacks up against other short-form video platforms like TikTok.