YouTube Tests Ads in the Form of Shorts

YOUTUBE is reportedly starting to trial ad serving in the form of Shorts or short videos introduced in 2020 to become competitors from TikTok and Reels from Instagram.

Google’s Head of Business Philipp Schindler said the company, in particular, was experimenting with app install ads and then other promotions.

“We’ve had a bit of a drag on revenue growth as Shorts views grew as a percentage of total YouTube time,” said Alphabet Google CFO Ruth Porat.

Read also: YouTube Adds Transcription Feature in Android App

He further added, “We are currently testing monetization on short films, and the advertiser’s feedback and initial results are very encouraging.”

According to Google, YouTube’s Shorts generates 30 billion daily views, quadruple from last year.

Meanwhile, YouTube ad revenue growth picked up, hitting $6.86 billion, according to its first-quarter earnings report.

Although the value is fantastic, the number remains below analyst expectations.

The video-sharing site said it was also seeing a decline in direct response ads, particularly for app install ads.

The news comes after YouTube introduced a $100 million creator fund for Shorts last year, hoping it would lure content creators to use its platform.

YouTube, last August, announced it would pay popular video creators up to US$10,000 per month exclusively for Shorts content.

The company, at the time, viewed YouTube Shorts as simply an alternative way of advertising from paying content creators.

Meanwhile the company is perfecting its long-term monetization program.

However, it seems that now there is a change because YouTube Shorts will begin to be used as a mainstay weapon for gaining ads. (Ant/OL-1)

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