Google is Testing Ads on YouTube shorts, To compete with TikTok

With the launch of YouTube Shorts in 2020, Google hopped on the bandwagon, citing the increased popularity of vertical, short-form videos on TikTok and Instagram Reels. Now, it appears that the internet giant plans to add adverts to its short-video platform on Android and iOS in order to help content creators finance their work. To learn more about it, see the details below.

YouTube Shorts Will Soon Show Ads

Google recently released its first-quarter 2022 earnings report. Despite missing profits expectations (it was anticipated to reach $7.51 billion but only hit $6.87 billion), the company saw strong growth on YouTube, mainly to the platform’s adverts. YouTube grew by 14% year over year, with ad revenue accounting for the majority of that increase. Google is now attempting to bring adverts to YouTube Shorts, based on this increase.

Google’s Chief Business Officer, Phillip Schindler, stated that the firm has begun experimenting with monetization potential on Shorts. It would also be an interesting addition for consumers, creators, and advertising, he said.

“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.

It’s worth noting that, despite Google’s earnings falling short of expectations for the quarter, YouTube Shorts saw significant growth. The platform now has 30 million daily active users and is available in over 100 countries (DAU). In comparison to last year, there are four times as many DAUs.

Although TikTok presently dominates the short-video industry, Schindler stated that Google is putting a lot of effort into making YouTube Shorts a viable contender. The $100 million Short Fund, which awards YouTube Shorts artists up to $10,000 per month for their content, viewership, and interaction, was also noted by the executive.

With ads on YouTube Shorts, Google hopes to increase revenue from the app’s growing user base. Furthermore, considering the company’s declining income from its other services, it is a reasonable decision. However, from the standpoint of the user, it may not be a pleasant change. People may be able to accept this, though, because YouTube videos already contain advertisements.

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