The income of content creators on YouTube has increased

In competition with Tik Tok, YouTube introduced a new model for generating revenue for content producers from short videos.

YouTube will run ads on its Shorts video service, and video producers will receive 45 percent of the revenue from those ads. The standard distribution of advertising revenue for videos outside this service is 55%. On the other hand, Tik Tok has allocated 1 billion dollars in credit to pay content producers.

YouTube’s video service has been challenged to compete with TikTok, attracting more than 1.5 billion monthly viewers in late 2020 with the launch of its Shorts service, which includes one-minute videos.

YouTube created a $100 million fund in April to encourage content creators to make videos, and the ad revenue sharing plan, first reported by The New York Times, is a more attractive proposition than the fund, and somewhat similar to TikTok’s offer to Content producers are equal.

YouTube will share a smaller portion of sales with content creators on Shorts to compensate for their significant investment in the development of the service, said Tara Wolpert-Levy, vice president of YouTube.

According to a Reuters report, Google earned $14.2 billion from YouTube ad sales in the first half of this year, up 9 percent from the same period in 2021. But advertising sales in the third quarter had the slowest growth since the statistics began to be published in the last three years. Although global economic factors have been involved in this slow growth, Tik Tok also played a role.