Creators Now Making Ad Revenue on YouTube Shorts

March 20, 2023 at 16:14 PM EDT

YouTube’s parent company Google announced last month that creators will earn ad revenue from their YouTube Shorts videos through the new YouTube Partner Program (YPP). So, if you’re a content creator who enjoys sharing YouTube shorts about gaming, for instance, things are about to get more lucrative on YouTube.

Creators are required to review and accept the terms of the YPP’s Shorts Monetization Module by July 10, 2023, if they want to get their hands on the Shorts ad revenue. Here’re a few pointers you need to know about the monetization of YouTube Shorts if you actively upload Shorts content on the world’s most popular video-sharing platform.

Content that is Suitable for Shorts Ads

Once creators join the YouTube Partner Program, they can monetize their content to get a piece of the revenue pie. But first, they must abide by Google’s advertiser-friendly content guidelines, which apply to videos, titles, tags, and descriptions. Moreover, if you’re a YouTube creator, the context of your videos is also vital if you want to monetize them.

According to Google, there’re specific rules regarding which videos can run ads, which ones can run limited ads, and which videos aren’t allowed to run ads. In addition, if a creator wants to upload content that doesn’t follow Google’s advertiser-friendly content guidelines, they should turn off Shorts ads on the individual video, opting out of video monetizing.

Some of the content that goes against advertiser-friendly content guidelines include:

Inappropriate Language

A video that contains vulgar or profanity may not be appropriate for advertising. However, using profanity or offensive language in music videos may not make content inappropriate for advertising.

Violence

Videos showcasing violence, blood, or injury without further context don’t follow the advertiser-friendly content guidelines; therefore, they are unsuitable for advertising. However, a creator should add context for content showing injury or violence in a documentary, news, or for educational purposes.

Adult Content

Content that contains sexualized content in the video, thumbnail, or title isn’t a fit for advertising. However, music and non-graphic sexual educational videos are exemptions.

Display of Dangerous Acts

Content encouraging dangerous acts that may cause emotional, physical, or psychological harm goes against advertiser-friendly content guidelines.

Hateful Content

Any content that promotes discrimination against an individual, race, or religion goes against the advertiser-friendly content guidelines.

Disallowed Shorts Views

When YouTube calculates payments, the company won’t include ineligible Shorts views. The instances when Shorts views won’t be monetized include:

Reloading content made by other creators;
Making compilations that don’t have the creator’s original content;
The usage of unedited clips from tv shows or movies;
The use of fake views from scroll bots or automated clicks.

Shorts Revenue Sharing Format

Shorts content monetization will be based on ads running between content in the Shorts Feed. Every month, revenue collected from Shorts ads will be used to pay the Shorts content creators and cover the costs of music licensing. Next, YouTube will add the Shorts Feed ad revenue into the Creator Pool based on the views and music used by the creator.

Further, if a creator didn’t use music in their Shorts, then all the ad revenue goes into their Creator Pool. However, the revenue will be shared between the Creator Pool and music partners if a creator uses music tracks in their videos. So, for example, if a creator uploads a Short with one music track, half of the revenue linked to the Shorts viewed will be allocated to the Creator Pool, while the other half will cover music licensing costs.

Meanwhile, if a creator uses two tracks, then a third of the revenue will be allocated to the Creator Pool, and the remaining two-thirds to cover music licensing costs. Revenue allocated to the creator from the Creator Pool will be based on the total number of views they get in each country. On the other hand, ad revenue not included in the Creator pool will consist of the following:

Revenue linked to views, where the Shorts creator hasn’t accepted the Shorts Monetization Module terms or is not yet eligible for monetization. The revenue will either be retained by YouTube or used to cover the cost of music licensing.
Revenue linked to views of Shorts that YouTube has deemed ineligible.
Revenue linked to ads displayed before a Short has been viewed.
Any revenue linked to Shorts ads displayed on navigational pages inside the Shorts player.

A Big Win for Content Creators

Since February 1, Google’s owned YouTube is expected to give platforms like Meta, Snapchat, and TikTok a run for their money. Although creators don’t have to opt for shorts monetization, the new YouTube Partner Program will unlock more avenues to make money from their content.

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