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YouTube starts testing ads on Shorts as competition from TikTok heats up

Youtube Shorts
(Image credit: Daniel Bader / Android Central)

What you need to know

  • Google has begun testing ads on YouTube Shorts.
  • The company has introduced ads as another way to help monetize content for creators.
  • The ads will likely promote app installs and 

Google may have missed analyst expectations when it released its Q1 2022 earnings report on Tuesday, but the company still saw growth across its services, particularly with YouTube ads. The streaming platform saw 14% revenue growth year-over-year, and Google now is hoping to extend this growth to its YouTube Shorts as well.

On Tuesday, Google's chief business officer, Philipp Schindler, stated that the company was in the process of testing monetization on Short and that it was excited about the opportunities this brings for consumers, creators, and advertisers. "We're testing ads on Shorts with products like App Install and video action campaigns," Schindler said during the earnings call. "And while it's still early days, we're encouraged by initial advertiser feedback and results."

Despite the fact that Google's earnings fell below expectations, YouTube ad revenue continues to climb. The search giant also has seen tons of engagement on Shorts, which is available in more than 100 countries and sees 30 million daily views, or four times the amount it was seeing just one year ago. With this amount of engagement, bringing ads to Shorts seems like a no-brainer and a great way to increase monetization for its platform.

When asked about the increased popularity of competing platforms like TikTok, Schindler seemed unfazed. He noted that while there has been significant investment in online video, "there are 2 billion+ logged-in viewers who visit YouTube every single month. And more people are creating content on YouTube than we've ever seen before. And the team remains very focused in trying to help creators grow, trying to innovate."

Schindler emphasized the company's efforts to help creators make more money on the platform. In particular, he highlighted its $100 million Short Fund which rewards creators up to $10,000 per month for their content based on certain criteria such as viewership and engagement.

YouTube Shorts was originally launched in 2020 to a limited audience before expanding to more users and countries later. Shorts can be accessed via the YouTube app on iOS and Android phones.

Derrek is a long-time Nokia and LG fanboy who loves astronomy, videography, and sci-fi movies. When he's not working, he's most likely working out or smoldering at the camera.