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.

More in Future of TV

Future of TV Briefing: One area where the upfront measurement currency conversation is advancing

This week’s Future of TV Briefing looks at the state of play for measurement currencies as advanced audiences become a focal point in this year’s upfront market.

Inside YouTube’s 2024 upfront pitch to advertisers

YouTube is updating its YouTube Select program that packages top creators’ channels, adding creator takeovers and introducing a new AI-powered ad product.

Research Briefing: Marketers are set to increase their upfront spending this year

In this edition of the Digiday+ Research Briefing, we examine how advertisers are approaching spend in the upfront market, what metrics marketers use to gauge ad campaign success on streaming platforms, and how brands, retailers and agencies are investing in programmatic ads, as seen in recent data from Digiday+ Research.