Trend set TikTok could threaten YouTube’s core business. By launching Shorts as an alternative to attract a new audience that prefers short videos, the company would jeopardize the traditional format that generates the most profit.
According to a report from Financial Timessome senior YouTube executives expressed their anxiety about short videos. Sources close to the company admitted that employees discussed the risk that short videos would destroy the platform’s core business. long videoswhich usually offer more monetization options will be is in danger of extinction.
While YouTube has reported a rebound in ad revenue for the most recent quarter, internal data shows thatCreators prioritize short videos. Short videos have more options for an audience accustomed to consuming fast, powerful and entertaining content. Brands know this and prefer to pay for product placement in short videos rather than long videos.
According to ComScore, YouTube lost the attention of users of all age groups (except for persons over 55 years of age). The trend of watching short videos is welcomed by many. youtubers. Not only do they get the best brand-sponsored content, but the videos also require less editing work.
“Many influencers and content creators don’t have that huge, wonderful personality energy that lasts 30 minutes,” says Fumi Desalu-Wold, youtuber with over 677,000 subscribers. “But in a minute boom, they take it out. They are pleasant and recognizable.” Short videos also help to avoid the burnout syndrome that causes many to temporarily leave their channel for good.
YouTube and the fear of losing relevance
Although YouTube has called Shorts a plug-in, current consumer trends may make it a competitor to other formats. decline in attention in new generations The situation is changing for tech giants who have to introduce new products to stay relevant.
One of the most successful examples is Reels, Instagram’s answer to TikTok. The new section debuted in 2020 as an add-on to the platform, and in less than three years has become Meta’s mainstay of revenue. short videos have generated over $10,000 million last year, according to the company’s latest financial results.
Susan Lee, CFO of Meta, stated that three-quarters of the company’s advertisers advertise on Reels. The Mark Zuckerberg-led company faced a similar situation to YouTube’s in 2022, with some investors questioning the impact Reels would have on ad revenue from Facebook’s feed, one of its most lucrative sections.
Reels is still far from surpassing what the newsfeed got, but the new format has already changed the concept of Instagram. The platform puts more emphasis on stories and videos, leaving static content in the background.
YouTube notes that it is pleased with the success of Shorts, as the offer of various media creates a “virtuous circle” that leads viewers to new formats. At the moment, the social network offers 55% of income on long videos, compared to 45% on short ones. This figure may change if the consumption trend continues.
Source: Hiper Textual
I am Garth Carter and I work at Gadget Onus. I have specialized in writing for the Hot News section, focusing on topics that are trending and highly relevant to readers. My passion is to present news stories accurately, in an engaging manner that captures the attention of my audience.