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Short-form video has exploded in popularity in recent years, primarily due to platforms like TikTok, Instagram and YouTube Shorts. However, with Shorts now amassing a staggering 2 billion users, some senior YouTube employees have started worrying that it might overshadow the platform’s core business of long-form content and potentially impact their primary revenue source.
As per the Financial Times, (via 9To5Google)this issue stems from the fact that audiences are increasingly gravitating toward shorter, punchier video content, thanks in part to the growing influence of TikTok among the newer generation and brands preferring short-form videos to promote their products. Additionally, the issue becomes even more concerning when looking at YouTube’s ad revenue, which saw its first-ever quarterly decline in October since it began reporting it separately in 2020.
While YouTube did improve its ad revenue in subsequent months, it has been a significant concern for the company. This is because longer form videos offer more opportunities for ad placement and generally yield higher click-through rates on e-commerce links.
YouTube’s response
YouTube acknowledged these concerns and highlighted that Shorts are meant to complement, not compete with, other content formats on the platform, such as live streams and audio. Moreover, YouTube believes that offering a variety of content creates a “virtuous cycle” that attracts diverse viewers to the platform.
“We’ve been very pleased with its initial success. This is not a zero-sum game,” said YouTube.
However, Joseph Teasdale, Head of Tech at Enders Analysis, believes that YouTube itself is prioritizing Shorts’ exposure to its extensive user base. This is evident through the company’s actions, such as the downgrading of videos featuring TikTok branding and the introduction of lucrative payment options and new in-app editing tools. Additionally, YouTube has even turned to DeepMind to develop AI solutions aimed at enhancing platform performance and reducing costs.