Google Starts Testing Ads on YouTube Shorts to Take on Rival TikTok

youtube shorts fund

Citing the growing popularity of vertical, short-form videos on TikTok and Instagram Reels, Google jumped on the bandwagon with the introduction of YouTube Shorts back in 2020. Now, it seems like the tech giant wants to bring ads to its short-video platform on 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 company has 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 currently dominated 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 that it might take some time for Google to bring ads to the platform for 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.

VIA TechCrunch
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