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YouTube fights back against TikTok

YouTube is owned by Google and is fighting back against TikTok using the video giant’s main advantage: money.

YouTube is owned by Google and is fighting back against TikTok using the video giant’s main advantage: money. On Tuesday, YouTube announced plans to share ad sales with the makers of Shorts, its bite-sized video feature. Unlike YouTube’s main site, the new program compensates creators who use a pool of ads that appear in Shorts. That’s similar to how TikTok pays its popular stars, although TikTok has used a fixed fund that has been criticized for meager payouts.

But YouTube sees its efforts as more ambitious than what TikTok has done. Neal Mohan, the company’s chief product officer, described the plan as the first to fund short online video “on a large scale.”

Makers can participate “whether they want to be the next big thing or just need help paying the bills,” Mohan said in the company’s Los Angeles production space. “We want YouTube to be the place where they get the most support in the digital landscape.”

YouTube, part of Google of Alphabet Inc., faces competition from TikTok for both young viewers and the online stars who have made the video platform a commercial success.

Like Instagram, YouTube has responded to TikTok with mimicry. In 2020, YouTube introduced Shorts, a vertical video format increasingly promoted in the company’s app. Earlier this year, YouTube announced that Shorts had more than 1.5 billion monthly viewers and told investors it would bring ads to the format.

YouTube started sharing ad sales with producers in 2007 and now has more than 2 million creators on its schedule. Last year, YouTube reported more than $28 billion in ad sales, before creator payouts. Still, growth has slowed this year, which analysts attribute to Apple Inc.’s ad targeting limitation. and the rise of TikTok.

Mohan said creators can join YouTube’s affiliate program if they have over 10 million views on Shorts and over 1,000 subscribers. Historically, YouTube has given 55% of its ad sales to creators and kept the rest. With Shorts, YouTube only shares 45% of its advertising program.

Tara Walpert Levy, a vice president of YouTube, said the company changed its commission because it was better for building “a long-term business.” ”

YouTube has also introduced a new feature called Creator Music that allows creators to easily license popular songs in videos and still earn money. Previously, music rights holders got their entire revenue from songs played in videos. Popular music in clips has been a big driver for TikTok’s popularity.

To announce the feature, YouTube brought on stage Jason Derulo, a musician with a huge following on TikTok.

“For me, this announcement is going to shake up the world,” he said of YouTube’s new feature.

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