YouTube will pay creators of short formats to counter TikTok

Posted Sep 21, 2022, 5:05 PMUpdated Sep 21, 2022, 5:34 PM

Good news for content creators. From 2023, authors of Shorts videos – the 15-second short format on YouTube – will receive part of the advertising revenue generated by Google’s video platform. YouTube announced it Tuesday in Los Angeles, explaining that it was the first “large-scale” initiative in this area, a barely concealed snub to TikTok. In 2020, the latter had launched a Creator Fund supposed to reach $ 1 billion within three years, but it is not an agreement to share advertising revenue.

In this area, YouTube is ahead. The platform pays the “vloggers” who have made it successful… since 2007. Over the past three years, 50 billion dollars have even been paid to creators and the media, as part of this program called “YouTube Partner”. To benefit from it, two conditions must be met: being followed by 1,000 subscribers and having posted videos viewed at least for 4,000 hours during the past year.

But the creators of Shorts, a new format launched in 2020 to meet competition from TikTok, were not eligible. However, this new format has exploded, with 30 billion views each month. YouTube has also quickly monetized this audience, by inserting advertisements between these videos. Last year, the Google subsidiary generated $28 billion in advertising (before payment to creators), across all formats.

Creators will earn “more money”

From now on, advertising revenue will be aggregated, then 45% of the jackpot will be distributed to creators according to their audience (compared to 55% for long formats). What to cover in particular the purchase of musical rights, when the influencers want to use such or such piece for their videos.

Videographers who do not meet all the criteria will be able to access other means of monetization, such as the sale of paid “stickers”. “The majority of our beneficiaries […] will make more money with this new model built for the long haul, YouTube says. Rather than a fixed fund, we are doubling down with this revenue sharing model. »

TikTok Tidal Wave

But this new model is above all a direct response to TikTok. In recent years, the Chinese application ByteDance has made a tidal wave among adolescents and young adults.

With 2.4 billion users, YouTube certainly remains ahead of TikTok (more than 1 billion). Still, the dynamic is clearly on the side of the latter. The world’s sixth-largest social network is “gaining more than half a million new users every day” according to Hootsuite and We Are Social, while older networks are stagnating or even losing subscribers, such as Facebook.

With this revenue sharing, YouTube hopes to reverse the trend. Objective: to attract creators so that they post their videos on YouTube and no longer on TikTok, even if in fact influencers often publish on both.

The platform has arguments. Its program is global, while TikTok’s Creator Fund is limited to six countries (United States, United Kingdom, France, Germany, Spain and Italy) and had only been topped up to 70 million in March 2021. of dollars.

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