YouTube is testing ads on Shorts, a short-form video tool similarly to TikTok and Instagram that the firm launched in 2020.
Google’s chief business officer, Philipp Schindler, told investors that the company is testing with app-install ads and other advertising options in particular.
“As Shorts viewership climbs as a percentage of total YouTube time, we’re seeing a modest impediment to revenue growth,” Alphabet CFO Ruth Porat said. “We’re experimenting with short-form monetization, and early advertiser feedback and results are promising.”
YouTube Shorts, according to Google, is producing 30 billion daily views, which is four times the amount seen last year.
Meanwhile, according to YouTube’s first-quarter financial report, ad income increased to $6.86 billion, but this was below analyst estimates. Direct response ads, such as app-install campaigns, have also decreased, according to YouTube.
Last year, YouTube announced a $100 million creator fund for Shorts in an attempt to entice producers to use the platform.
In August, YouTube announced that it will pay successful video creators up to $10,000 per month. At the time, the firm saw it as an alternative to paying creators’ ads while it worked out a long-term, scalable monetization plan for them.
YouTube chief product officer Neal Mohan outlined more ideas for creators to generate money from Shorts. These include branded content, the ability for customers to shop from a Short, and the addition of Super Chat to the service.