YouTube Testing Ads on Short-form Video Feature, Shorts

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YouTube has started testing ways to monetize on its short form video feature, Shorts. The tech giant is testing advert placements and promotions on the TikTok clone which was launched in 2020. According to Google’s chief business officer, Philipp Schindler, the company is specifically testing app-install ads.

“We are experiencing a slight headwind to revenue growth as Shorts viewership grows as a percentage of total YouTube time,” Alphabet CFO Ruth Porat said.

“We are testing monetization on shorts, and early advertiser feedback and results are encouraging.”

The alphabet-owned video-streaming company said Shorts has attracted about 30 billion daily views which is four times the amount recorded last year.

Read: Nadia Mukami to Sue Upcoming Artists Issuing Fake Copyright Claims on YouTube Songs

Meanwhile, according to YouTube’s first-quarter financial report, ad income increased to $6.86 billion, but this was below analyst estimates. Direct response ads, such as app-install campaigns, have also decreased, according to the video-sharing site.

Last year, YouTube announced a $100 million creator fund for Shorts creators on the platform. The funds are open to several users across the globe, including Kenya with the intention of luring more creators. Creators can earn up to about Sh100,000 per month from using the feature.

YouTube seems to be focusing more on the monetization aspect of the app, after announcing the expansion of its tipping feature this week. The feature allows fans to show extra gratitude by buying stickers, animations or using the super chat feature to tip the creator.

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Written by Vanessa Murrey

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