SAN FRANCISCO, April 29 ― Any means is good to compete with TikTok. After launching its new Shorts format, YouTube is accelerating the monetization of its content by adding ads to the feature – a good way to attract brands and, most importantly, money.
It’s a strategy that could well pay off. Announcing its first-quarter 2022 results, Google’s parent company Alphabet — which also owns YouTube — revealed it was testing ads on Shorts, its new TikTok-like format. Although the test is still in its early stages, early feedback and results from advertisers are already positive, according to the company’s recent earnings call.
The development of monetization strategies is a logical continuation of the success of YouTube Shorts. Indeed, according to the earnings call, the platform now achieves over 30 billion daily views, apparently a fourfold increase from a year ago. And the American giant is now keen to capitalize on this success. As users spend more time on YouTube Shorts, they spend less time on regular YouTube videos, which are monetized.
Monetization: an absolute priority
Content monetization has recently become one of YouTube’s top priorities. It’s a good way to attract brands as well as content creators, and therefore to sustain the platform. In addition to running ads on its Shorts format, YouTube has also rolled out its “Super Thanks” tool which allows users to send money directly to content creators. Now, all creators who are part of the YouTube Partner Program in 68 countries can receive these bonuses. Other means deployed include “Super Chat”, which allows live users to pay to have their comments pinned in a chat, or “Super Stickers”, allowing creators to receive money if a user purchases a sticker.
This isn’t the first time YouTube has developed tools to push users to use its Shorts format. The platform previously earmarked US$100 million (RM436.6 million) for the establishment of the YouTube Shorts fund. And it’s a strategy that seems to be working. In fact, more than 40% of creators who received payment from the fund in 2021 were not part of the YouTube Partner Program, Google chief commercial officer Philipp Schindler told investors.
It remains to be seen whether these efforts will be enough to compete with the Chinese giant. TikTok has long allowed users to send money in the form of stickers during live streams. Ads have become commonplace on the platform, and creators also offer their own sponsored content. ― Studio ETX