Google Starts Testing Ads on YouTube Shorts to Take on Rival TikTok
Citing the growing popularity of vertical, short-form videos on TikTok and Instagram Reels, Google jumped on the bandwagon with theintroduction of YouTube Shortsback in 2020. Now, it seems like the tech giant wants to bring ads to itsshort-video platformon Android and iOS to help creators monetize their content. Check out the details below to find out more about it.
YouTube Shorts Will Soon Show Ads
Google recently shared its earnings report for the first quarter of 2022. Although the company might have missed the expected earnings (it was expected to meet the $7.51 billion mark but only reached $6.87 billion), it saw significant growth on YouTube, thanks to the ads on the platform.YouTube saw a 14% YoY growth, with revenues from ads adding the most in that amount. Banking on this growth, Google now aims to bring ads to YouTube Shorts.
Phillip Schindler, Google’s Chief Business Officer, said that the companyhas started testing monetization opportunities on Shorts. He also stated that it would be an exciting addition for consumers, creators, and advertisers.
“We’re testing ads on Shorts with products like App Install and video action campaigns. And while it’s still early days, we’re encouraged by initial advertiser feedback and results,”Schindler said in a statement during the earnings call.
Now, it is worth noting that although Google’s earnings failed its expectation for the quarter, the company saw significant growth for YouTube Shorts. The platform, which is available in over 100 countries, now has 30 million daily active users (DAU). That is four times the number of DAUs as compared to last year.
Although the short-video space is currentlydominated by TikTok, Schindler noted that Google is heavily investing resources to make YouTube Shorts a worthy competitor. The executive also mentioned the $100 million Short Fund that rewards YouTube Shorts creators up to $10,000 a month for their content, viewership, and engagement.
With ads on YouTube Shorts, Google aims to further expand the revenues from Shorts’ ever-increasing user base. Moreover, from the company’s perspective, it is a logical move, considering the falling revenues from its other services. But from the user perspective, it might not be a welcome change. That said, people might be able to easily accept this, considering the YouTube videos already show ads.
It is worth mentioning thatit might take some time for Google to bring ads to the platformfor all users, going forward. So, stay tuned for further updates, and let us know your thoughts on ads coming to YouTube Shorts it in the comments below.
Dwaipayan Sengupta
A geek at heart, you’ll find me fidgeting with an iOS device or sitting in front of the laptop, scouring the internet to find interesting technological innovations. In my free time, you’d find me playing Valorant or listening to Pink Floyd.
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