On February 1, 2023, YouTube launched ad revenue sharing for eligible Shorts. YouTube Shorts ad revenue sharing officially replaced the YouTube Shorts Fund and this brings a new monetisation option for all the content creators.
In this article, we will cover how YouTube shorts revenue works, how much can you earn, eligibility requirements for content creators, content suitable for ads, and the ad formats eligible for revenue sharing.
Additionally, we will discuss how ad revenue sharing works for Shorts to give you a better understanding of the process so that you can optimise your channel and shorts for YouTube shorts revenue.
According to Google:
‘Only views of Shorts that follow the advertiser friendly content guidelines will be eligible for revenue sharing’.Google
YouTube will only monetise Shorts content that is original and does not feature unedited clips from movies or TV shows, re-uploaded content from other creators or platforms, compilations with no original content added, or views that are inconsistent with the advertiser-friendly content guidelines.
Eligibility threshold for Shorts Creators
Google officially states: Creators can become eligible for YouTube shorts ad revenue sharing by gaining 1,000 subscribers with 10 million shorts views in the last 90 days.
Ad Formats Eligible for Shorts Revenue Sharing
YouTube will share revenue with creators on ads that appear between Shorts videos in the Shorts Feed. Also, Ad revenue sharing for Shorts views is separate from long form video monetisation on the watch page.
Acceptance of the Shorts Monetisation Module
According to Google, all eligible content creators need to accept the Shorts Monetisation Module to be eligible for revenue sharing. Acceptance of the module indicates acceptance of the terms and conditions that govern Shorts monetisation.
Shorts ad revenue sharing will apply to eligible Shorts views that have accrued after the date of acceptance. Views accrued before acceptance will not be eligible for ad revenue sharing.
How Ad Revenue Sharing Works for Shorts
Officially, There are four steps to how Shorts ad revenue sharing works:
The first step is to pool Shorts Feed ad revenue. Every month, revenue from ads running between Shorts videos in the Shorts Feed is added together and used to reward creators and cover the costs of music licensing.
The second step is to calculate the Creator Pool, which is determined based on views and music usage across Shorts uploaded by creators. If a creator uploads a Short without any music, all of the revenue associated with its views goes into the Creator Pool. If a creator uploads a Short with music, then YouTube will split the revenue associated with its views between the Creator Pool and music partners based on the number of tracks used.
The third step is to allocate the Creator Pool. Revenue is distributed to monetising creators based on their share of total views from creators Shorts in each country.
The final step is to distribute revenue share. Monetised creators keeps 45% of their allocated revenue, regardless of whether music was used in their Shorts. However, certain Shorts views are not included in the Creator Pool, such as views of Shorts uploaded by creators who haven’t yet accepted the Shorts Monetisation Module, views of Shorts uploaded by music partners, and views of Shorts that are determined to be ineligible.
How much can You Earn from YouTube Shorts Revenue?
To understand how ad revenue sharing works for Shorts, consider the following hypothetical example.
Suppose a monetised creator uploads a Short that uses one music track. In Country A, there are 1 billion total Shorts views that have been uploaded by monetised creators, and $1 million has been earned from ads that play between Shorts in the Shorts Feed. And, after taking out the part for covering the costs of music licensing, $ 900,000 are left.
Now, the creator’s Short is viewed 10 million times, which is 1% of the total Shorts views by monetised creators. So the creator is allocated 1% of the Creator Pool or $9,000.
You don’t get all the $9,000 because of the YouTube policy of 45% – 55% distribution of the allocated revenue. You will get 45% of the $9,000 allocated to you which comes out to be $4,050.
Still good enough from our opinion considering YouTube is giving you a medium to earn.
Third Party Content in Shorts
If a Short contains any third party content, for example, a clip from a movie or TV show, the views associated with that clip will not be credited to the Creator Pool. The same applies if a Short contains content from a third-party creator that has not agreed to the use of their content in Shorts.
How use of third-party content affects revenue share? If third-party content is used in a Short, the revenue share will be split between the uploader and any third party rights-holders, based on the percentage of views of the Short that includes their content.
This split will only apply to the revenue share associated with the views of the Short that include third-party content. The uploader will keep 45% of the revenue share associated with the remaining views of the Short.
To ensure that you are following the policies around use of third-party content in Shorts, it is important to only use content that you have the rights to use. This can include original content that you created yourself, content that is in the public domain, or content that you have licensed for use.
Q) Does YouTube Pay for Shorts?
Yes, YouTube Shorts Revenue is allotted by YouTube to monetised creators.
Q) How much do YouTube Shorts Make?
Monetised creators make money from their shorts based on the views they get and the views the total Creator pool gets. For example, If the monetised creator gets 1 million views (i.e 1% of that total creator pool) and the total creators pool gets 100 million views, then the money allocated to the monetised creator is 1% of the total revenue made by the creators pool.
Q)Who is Eligible for YouTube Shorts Revenue ?
To be eligible for the YouTube Shorts Revenue sharing program, you need to meet the program’s eligibility criteria, including having at least 1,000 subscribers and 4,000 watch hours in the past 12 months.
With the introduction of YouTube Shorts revenue sharing, monetising creators will now be able to earn revenue from their Shorts content. However, it is important to note that only content that follows advertiser friendly guidelines and does not feature ineligible Shorts views will be eligible for revenue sharing.
Creators will need to accept the Shorts Monetisation Module and meet certain eligibility requirements to participate in revenue sharing. They will also need to follow the policies around use of third-party content in Shorts to ensure that they are not in violation of any copyright or intellectual property rights.
Overall, YouTube Shorts revenue sharing presents an opportunity for creators to earn revenue from their content in new and innovative ways, while also providing a more engaging and dynamic experience for viewers on the Shorts platform.
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