YouTube Shorts is on a roll as recent figures have shown that the app has reached a record 30 billion views on a daily basis. Therefore, it only makes sense why Google is busy looking at ideas through which it can benefit from the app’s expansion.
Recently, the tech giant confirmed how it was testing ads for YouTube shorts after its earnings reports showed what a major role Shorts played in bagging some major profits.
The initial test is something that many tech experts feel was bound to come as any platform generating this many views on a daily basis needed better strategies for monetization.
If you remember, YouTube made plenty of heads turn after it was revealed how the platform harnessed 5 trillion views from all its Shorts videos in February. And now, after seeing these recent figures, you can’t help but wonder about the great amount of potential and popularity this venture has.
The company hopes that through the addition of Shorts ads, they will soon be getting a great means of monetization than the traditional route. But remember that this is a very pivotal consideration that YouTube must make. After all, the more users spend time watching Shorts, the less time they’ll spend on the platform’s classic video clips that are also monetized.
This is exactly what Google meant when it mentioned in its recent performance update that it was in a headwind in terms of its revenue growth. Remember, the more the viewership grows for Shorts, the lesser time left for others.
Hence, the only way out is to add ads as quickly and effectively as possible to prevent them from affecting the app’s overall earnings.
While we agree that adding ads is profitable, there’s only a certain amount of money that can be made through them when you consider such short video clips.
But the process isn’t as simple as it sounds. Vine tried to do the same in the past and struggled with it. In the end, it shut down. Therefore, TikTok, Facebook, and Instagram are all trying to find a solution to the matter.
So far, we’ve seen reports about funding pools being allocated on channels, where creators can benefit from getting a share of the profits, based on how their Shorts video performs.
However, it was seen as a major problem by creators who felt that such variations in payouts were not justified since they already earn so much.
Hence, it’s a double-edged sword that YouTube must carefully play out for top creators, or else they may end up shifting to other places.
Read next: YouTube Brings Its Pre-Publish Checks To Mobile Apps While Expanding Its Super Thanks Monetization
Recently, the tech giant confirmed how it was testing ads for YouTube shorts after its earnings reports showed what a major role Shorts played in bagging some major profits.
The initial test is something that many tech experts feel was bound to come as any platform generating this many views on a daily basis needed better strategies for monetization.
If you remember, YouTube made plenty of heads turn after it was revealed how the platform harnessed 5 trillion views from all its Shorts videos in February. And now, after seeing these recent figures, you can’t help but wonder about the great amount of potential and popularity this venture has.
The company hopes that through the addition of Shorts ads, they will soon be getting a great means of monetization than the traditional route. But remember that this is a very pivotal consideration that YouTube must make. After all, the more users spend time watching Shorts, the less time they’ll spend on the platform’s classic video clips that are also monetized.
This is exactly what Google meant when it mentioned in its recent performance update that it was in a headwind in terms of its revenue growth. Remember, the more the viewership grows for Shorts, the lesser time left for others.
Hence, the only way out is to add ads as quickly and effectively as possible to prevent them from affecting the app’s overall earnings.
While we agree that adding ads is profitable, there’s only a certain amount of money that can be made through them when you consider such short video clips.
But the process isn’t as simple as it sounds. Vine tried to do the same in the past and struggled with it. In the end, it shut down. Therefore, TikTok, Facebook, and Instagram are all trying to find a solution to the matter.
So far, we’ve seen reports about funding pools being allocated on channels, where creators can benefit from getting a share of the profits, based on how their Shorts video performs.
However, it was seen as a major problem by creators who felt that such variations in payouts were not justified since they already earn so much.
Hence, it’s a double-edged sword that YouTube must carefully play out for top creators, or else they may end up shifting to other places.
Read next: YouTube Brings Its Pre-Publish Checks To Mobile Apps While Expanding Its Super Thanks Monetization
