How YouTube is calculating creators’ ad-revenue shares for Shorts

Starting next month, YouTube will share ad revenue with Shorts creators. However, the originator of the creator ad revenue-sharing program has introduced a new twist with its short-form video service.

Unlike YouTube’s traditional revenue-sharing program or TikTok’s revenue-sharing program Pulse, YouTube is not attaching ads to individual Shorts videos in order to directly split revenue with creators and publishers. Instead, it will pool revenue to divvy up among eligible Shorts makers — but only after accounting for the platform’s music licensing costs.

In other words, the YouTube Shorts revenue-sharing model isn’t as simple as “advertiser pays platform, platform gives creator a cut.” Calculating how YouTube Shorts ad revenue will be split is more like doing taxes than basic arithmetic, as the video below breaks down.

https://digiday.com/?p=485359

More in Future of TV

Future of TV Briefing: How Amazon and Google are trying to undercut The Trade Desk’s CTV ad business

This week’s Future of TV Briefing looks at how Amazon and YouTube are dangling incentives to get advertisers to buy more CTV inventory through their respective demand-side platforms.

A red-toned GIF of a TV screen with shifting static in pink, yellow, and red, representing the evolving landscape of biddable CTV and its dynamic, data-driven ad opportunities.

Future of TV Briefing: How flexibility could funnel more upfront dollars to Amazon & Netflix this year

This week’s Future of TV Briefing looks at how Amazon and Netflix offer upfront advertisers more extensive cancellation options, which could affect how upfront dollars are allocated.

An Upfront Week recap and upfront market preview with Horizon Media’s David Campanelli

Horizon Media’s president of global investment breaks down the state of play heading into this year’s upfront market.