TikTok just recently announced a huge update intended to get back at Youtube. This battle has been ongoing for a while, with each app trying to one-up the other in terms of features and user base.
YouTube had this coming through the introduction of YouTube shorts which was meant to compete with TikTok.
In 2020 TikTok introduced its $200M TikTok creator fund. This was to encourage users to make creative content for the app.
Soon after YouTube in 2021 introduced its own ‘YouTube Shorts Fund’ with a $100 million budget also designed to reward creators who make creative and unique Shorts on their platform.
This has not worked really well for most YouTube creators who already make continuous revenue from the platform as has been illustrated by Think Media, A YouTube Channel.
“We had a video go viral on our Think Media Channel and we got about $25 and we got about 5 Million views. I was expecting a lot more and I was like this is nothing, this is absolutely nothing.” @NolanMolt
If that had been a YouTube video with ads on it, it would have made a lot more money. The reason for this is because ads are based on CPM rates and most of the time, YouTubers get around $2-$5 per 1,000 ad views.
This means that for the 5 Million views that Think Media got, they should have made around $10,000-$25,000 less 45% that YouTube takes from ads = $5,500 – $13,750. The $25 they got is less than 0.1% of what they could have made.
Important to note is CPM rates vary widely buy country, niche and even the type of ad, but $2-$5 is a pretty standard rate. If a YouTuber has a video with 1 Million views and a $5 CPM, they will make $5,000 less 45% (YouTube take) = $ 2,750 from that video.
This is why most YouTubers are not really excited about the YouTube Shorts Fund. The amount of money you can make from it is just too little compared to what you could make from ads.
It is safe to say that the YouTube Shorts Fund has not been working for creators as intended.
YouTube has now come out and introduced YouTube shorts monetization in order to get creators to make more content for the platform.
This move by YouTube is being seen as a way to make it profitable for creators to make money on YouTube shorts without the video necessarily having to go viral.
Creators will keep 45% of the revenue and YouTube will keep 55% which is a little different from the case with regular YouTube videos.
Qualifications for YouTube shorts monetization are as follows:
You will still need 1,000 subscribers as well as 4,000 public watch hours in the last 12 months or 10 Million valid public short views in the last 90 days.
This is a big deal for YouTube creators as it means they can finally make some decent revenue from YouTube shorts.
But TikTok has also introduced it monetization to be known as TikTok pulse. This is different from the fund in that this has ads on videos and will give creators a share of the revenue.
Qualifications for TikTok pulse are as follows:
- You must have at least 1000,000 followers
- You must post at least 5 videos in the last 30 days
- You must be at least 18 years old
TikTok will spilt it 50 – 50 with creators. This is more that what YouTube is offering.
The main difference here is that with TikTok,
Its for Creatures with 100, 000+ followers,
Brands will put ads on the top 4% of TikTok performers on any given day.
Creators get 50% of the revenue TikTok brings in from the brands.
This excludes the 96% of TikTok creators who don’t make it to the top 4%. This is a big difference from YouTube which gives creators a chance to monetize all their videos regardless of how popular they are.
It gets more interesting through, Digiday a YouTuber emailed TikTok about how the ad split would work.
He got an answer, only the video that plays before the ad is part of the pulse program and eligible for the ad revenue. The video that plays after that is not eligible for the revenue share. TikTok also stated that it didn’t matter how long a person watched the video or an ad for the person eligible to receive the revenue share.
This means that, a person could swipe past the ad and the person eligible would still get paid.
TikTok Vs YouTube
- TikTokers could make more money from ads
- Less TikTokers will be paid
- TikTok pays 10% more CPM
- You are more likely to earn money on YouTube than TikTok
- YouTube Shorts is a gateway to long-form videos which may mean more earnings.
Todd B, who is the head of discovery at YouTube has said that, 59% of Gen Z watch longer versions of videos that they discover on short-form video apps.
A TikTok creator shared their payouts from each platform.
TikTok was $3 a day
Instagram was about the same
Facebook was $1.5
YouTube paid her $196k in 2021 and that was the platform with her smallest audience.
Long form videos will pay you more than YouTube Short Videos, and YouTube is going to pay you more than TikTok, Instagram reels and Facebook.
This is because, with long-form videos, multiple ads on your videos and even ads that one can’t skip.
YouTube is also rolling out a new update that will split your video content into separate tabs.
- Videos Tabs – long form videos only
- Shorts Tab – Shorts only
- Live Tab – past, current & upcoming live streams
This is an effort to make it easier for YouTube creators to be found and to grow their audiences.
So which platform should you focus on as a creator, TikTok or YouTube?
This is a question that many creators face when they are trying to decide where to focus their content creation efforts. Both platforms have a lot to offer creators, but they also have some key differences that you need to take into account before making a decision.
Here are some of the things you should consider when deciding whether to focus on YouTube or TikTok:
1. The type of content you want to create
Both YouTube and TikTok are great platforms for creating a wide variety of content, but they each have their own strengths and weaknesses.
If you want to create long-form, in-depth content, then YouTube is probably the better platform for you. YouTube videos can be more than an hour long, which gives you plenty of time to explore your topic in depth.
TikTok, on the other hand, is better suited for shorter, snappier content. TikTok videos are typically only 15 seconds long, so you need to be able to get your point across quickly and concisely.
2. The size of your audience
YouTube has a much larger potential audience than TikTok. There are 2.6 billion active monthly users on YouTube, while TikTok has around 1 billion.
This means that if you want to reach the largest possible audience with your content, then YouTube is the way to go. However, TikTok is growing rapidly and it could eventually catch up to YouTube in terms of audience size.
3. The type of audience you want to reach
YouTube and TikTok both have a very young user base. YouTube is particularly popular with teenagers and young adults, while TikTok is used mostly by Gen Zers.
If you want to reach a younger audience, then TikTok is probably the better platform for you. However, if you’re looking to reach a more diverse range of people, then YouTube is a better option.
4. The level of engagement you want to achieve
Both YouTube and TikTok offer a great opportunity to engage with your audience, but TikTok is typically more interactive than YouTube.
On TikTok, users can like, comment on, and share your videos. They can also duet with you or create their own versions of your videos. This level of engagement is suitable for certain creators but not all.
5. The income you want to generate
Both YouTube and TikTok offer creators the opportunity to generate income from their content. However, YouTube is typically more profitable than TikTok.
YouTube videos can generate consistent income for their creators through ad revenue, while TikTok videos typically only generate income when they go viral.
If you’re looking to generate a steadier stream of income from your content, then YouTube is the better platform for you. However, if you’re okay with the potential for more sporadic income, then TikTok could be an option.
6. The level of commitment you’re willing to make
Creating consistent, high-quality content takes a lot of time and effort. If you’re not willing to put in the work, then neither YouTube nor TikTok is likely to be a good fit for you.
You need to be prepared to commit to creating new content on a regular basis if you want to be successful on either platform.
Its also important to note that as these platforms compete for market dominance they will continue to evolve, so what might not work not TikTok today just might in the future so you need to be prepared to change your strategy as the platforms evolve.
Early adopters also tend to make a lot of money as has been the case with YouTube where many of the early creators are now millionaires, so there is a financial incentive to get into a platform like TikTok early because relative to YouTube TikTok is still in its infancy.