The new YouTube Shorts monetization system will go into effect on February 1st and will see revenue from advertisements featured between Shorts clips divided among approved creators in the app.
As per YouTube:
“Starting February 1st, 2023, monetizing partners will be able to earn money from ads that are viewed between videos in the Shorts Feed. This new revenue-sharing model will replace the YouTube Shorts Fund.”
The new revenue share program from YouTube, which was first introduced in September of last year, has the potential to alter how all platforms monetize short-form video content.
Short videos create a new difficulty for effective monetization because you can’t immediately monetize them with pre- or mid-roll advertising like typical video uploads.
In order to keep a path to monetization for creators in their applications, the majority of social apps have switched to creator funds. However, this is not a sustainable process, and the design of such systems also results in payments declining as more artists try to access that pool of cash.
With this in mind, a considerably more extensive pool of revenue from Shorts commercials could be set aside. YouTube could then divide 45% of that total among the creators of Shorts depending on their respective views, making its payment model more equal and sustainable.
Watching how content creators are and will be with this new funding model for Shorts development will be fascinating as YouTube looks to improve its process over time. YouTube can offer additional funding as well as a more fair and open payment system for short-form creators.
As a result, the payouts will increase in line with the growth of the Shorts, and the funding is unrestricted, unlike creator funds.
You can learn more about YouTube’s Shorts ad revenue share program here.