You are here: Home » Technology » News
India to see smartphone sales worth Rs 61k cr this festive season: Report
Business Standard

YouTube takes on TikTok by plugging advertising into Shorts videos

Creators can join "whether they want to be the next big thing or just need help paying the bills," Mohan said at the company's Los Angeles production space

YouTube | TikTok | advertising

Mark Bergen | Bloomberg 

Credits: Bloomberg
Credits: Bloomberg

is fighting back against using the video giant’s key advantage: money.

On Tuesday, announced plans to share sales with creators of Shorts, its bite-sized video feature. Unlike on YouTube’s main site, the new program will compensate creators using a pool of funds that’s similar to the way that pays its popular stars.

But sees its effort as more ambitious than what has done. Neal Mohan, the company’s chief product officer, described the plan as the first to fund short-form online video “at scale.”

Creators can join “whether they want to be the next big thing or just need help paying the bills,” Mohan said at the company’s Los Angeles production space. “We want YouTube to be the place that gives them the greatest support in the digital landscape.”

YouTube, part of Alphabet Inc.’s Google, is facing competition from TikTok for both young viewers and the online stars that made the video platform a commercial success.

Like Instagram, YouTube has responded to TikTok with mimicry. In 2020, YouTube introduced Shorts, a format for vertical videos that it has increasingly promoted in the company’s app. Earlier this year, YouTube disclosed that Shorts had over 1.5 billion monthly viewers and told investors that it would bring ads to the format.

YouTube began sharing ad sales with producers in 2007 and now has more than 2 million creators in its program. Last year, YouTube reported more than $28 billion in ad sales, before creator payouts. Yet growth has slowed this year, which analysts attribute to Apple Inc.’s restriction on ad targeting and TikTok’s rise.

Mohan said that creators can join YouTube’s partner program if they have more than 10 million views on Shorts and over 1,000 subscribers. Historically, YouTube has given 55% of its ad sales to creators and kept the remainder. With Shorts, YouTube will only share 45% of its ads program.

Tara Walpert Levy, a YouTube vice president, said the company changed its commission because of the added complications of distributing sales to Shorts creators.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, September 20 2022. 23:17 IST