YouTube is start testing ads on Shorts, a short 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 business officer Philipp Schindler said. told investors on Tuesday.
“We are experiencing a slight headwind to revenue growth as Shorts viewership grows as a percentage of total YouTube time,” said Alphabet CFO Ruth Porat. “We are testing shorts monetization and the early feedback and results from advertisers are encouraging.”
According to Google, YouTube’s Shorts generates 30 billion daily views, four times as many as last year.
Meanwhile, YouTube’s ad revenue growth soared to $6.86 billion, its first quarter earnings report reveals, but that was below analysts’ expectations. The video-sharing site also says it has witnessed a decline in direct response ads, such as app install campaigns.
The news comes after YouTube launched 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 a month. At the time, the company viewed it as an alternative way to advertising from paying creators, while building a long-term, scalable monetization program for them.
During his performance in February on The Vergecast with Nilay Patel and Catie Keck, YouTube chief product officer Neal Mohan discussed further plans for creators to monetize Shorts. These include adding branded content, enabling consumers to shop from a Short, and bringing Super Chat to the service. You can hear him talk about these plans in more detail here on the podcast.