# YouTube in challenge to TikTok to give Shorts creators 45% of ad sales Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-20 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: YouTube unveils revenue-sharing for Shorts creators amid Meta Description: YouTube unveils new way for creators to earn on Shorts, competing with TikTok. 45% revenue share for videos on Shorts compared to 55% for regular uploads. URL: https://financedigest.com/youtube-in-challenge-to-tiktok-to-give-shorts-creators-45-of-ad-saleshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-09-20t171214z1lynxmpei8j0yxrtroptp4tiktok-youtube-1736815185501-compressed.jpg) By Dawn Chmielewski and Paresh Dave LOS ANGELES (Reuters) -YouTube unveiled a new way for creators to make money on short-form video, as it faces intensifying competition from TikTok. The Google-owned streaming service announced Tuesday that it would introduce advertising on its video feature Shorts and give video creators 45% of the revenue. That compares with its standard distribution of 55% for videos outside of Shorts, and TikTok’s $1 [billion fund for paying](https://www.financedigest.com/cvs-walmart-walgreens-agree-to-pay-13-8-billion-to-settle-u-s-opioid-claims-sources.html "CVS, Walmart, Walgreens agree to pay .8 billion to settle U.S. opioid claims – sources") creators. Hairstylist-turned-YouTube-creator Kris Collins, who goes by Kallmekris, lauded YouTube for offering revenue-sharing for Shorts. “Other platforms are focused on getting people their 15 seconds of fame, which is great,” she said. “But YouTube is taking a different approach. They’re helping creators make stuff in multiple formats.” The internet’s dominant [video site has struggled to compete with TikTok](https://www.financedigest.com/6-ways-how-to-create-great-tiktok-videos-for-your-business.html "6 Ways How to Create Great TikTok Videos For Your Business"), the app that got its start hosting lip-sync and dance videos and has subsequently burgeoned to 1 billion monthly users. YouTube responded in late 2020 with Shorts, minute-long videos that [attract more than 1.5 billion](https://www.financedigest.com/spains-la-liga-attracts-3-2-billion-investment-from-cvc.html "Spain’s La Liga attracts .2 billion investment from CVC") monthly viewers. In April, YouTube created a $100 [million fund](https://www.financedigest.com/british-ev-startup-arrival-gets-300-million-funding-aims-to-slow-cash-burn.html "British EV startup Arrival gets 0 million funding, aims to slow cash-burn") to entice creators to make the bite-sized videos in its bid to hang onto talent. The new revenue-sharing plan, first reported by the New York Times, is meant to be a bigger and more [sustainable lure than the fund](https://www.financedigest.com/global-citizen-seeks-up-to-1-billion-for-six-sustainable-impact-funds.html "Global Citizen seeks up to billion for six sustainable ‘Impact’ funds") and something TikTok has yet to match. YouTube is [sharing a smaller](https://www.financedigest.com/ericssons-provision-for-u-s-probe-hints-of-smaller-fine-shares-jump.html "Ericsson’s provision for U.S. probe hints of smaller fine, shares jump") proportion of sales with Shorts creators to offset its significant investment in developing the feature, Vice President Tara Walpert Levy said. Google generated $14.2 billion in YouTube ad [sales during the first half of this year](https://www.financedigest.com/home-battery-sales-in-germany-may-surge-59-this-year-study.html "Home battery sales in Germany may surge 59% this year -study"), up 9% from the same period in 2021. But the most recent [quarterly ad sales](https://www.financedigest.com/logitech-quarterly-sales-fall-22-as-slowdown-fears-bite.html "Logitech quarterly sales fall 22% as slowdown fears bite") reflected the slowest growth since disclosure of that data began three years ago. Though global [economic factors are at play](https://www.financedigest.com/using-agility-to-resist-economic-instability-and-level-the-playing-field.html "Using agility to resist economic instability and level the playing field"), financial analysts have said TikTok also is a factor. (Reporting by Dawn Chmielewski; Additional reporting by Paresh Dave; Editing by Lisa Shumaker) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---