youtube is starting to test ads on Bermudaa short-form video feature the company introduced in 2020 that is similar to what TikTok and Instagram offer.
The company is specifically experimenting with app install ads and other promotions, Google Chief Commercial Officer Philipp Schindler said. told investors on Tuesday.
“We are experiencing a slight headwind to revenue growth as Shorts’ audience grows as a percentage of total YouTube time,” Alphabet CFO Ruth Porat said. “We are testing monetization in shorts, and early feedback and results from advertisers are encouraging.”
According to Google, YouTube shorts are generating 30 billion daily views, four times more than last year.
Meanwhile, YouTube’s ad revenue growth surged to $6.86 billion, its first-quarter earnings report reveals, but that was below analysts’ expectations. The video-sharing site says it has also seen a drop in direct response ads, such as app install campaigns.
The news comes later YouTube introduced a $100 million creator fund for Shorts last year, hoping to entice creators to use its platform.
YouTube announced in August that it would pay creators who make popular videos up to $10,000 per month. The company, at the time, considered it an alternative way to paying creator ads, while developing a long-term, scalable monetization program for them.
during his february appearance the Vergecast with Nilay Patel and Catie KeckYouTube chief product officer Neal Mohan discussed other plans for creators to make money from Shorts. These include adding branded content, making it possible for consumers to buy from Short, and bringing Super Chat to the service. You can hear him talk about these plans in more detail on the podcast here.