YouTube Shorts Gains Momentum as TikTok’s Future Remains Uncertain

As uncertainty over TikTok’s fate in the U.S. lingers, YouTube Shorts is emerging as a major beneficiary, with advertisers increasingly shifting their focus to the platform. According to Google’s SVP Philipp Schindler, ad revenue from Shorts is growing rapidly, closing the gap with YouTube’s long-form content. “In 2024, the monetization rate of short relative to in-stream viewing increased by more than 30 percentage points in the U.S.,” Schindler stated during Google’s recent earnings call.

YouTube has been actively positioning Shorts as a strong alternative to TikTok, leveraging industry data to attract advertisers. eMarketer statistics suggest that Gen Z users overlap significantly across both platforms, with 49.8% of TikTok’s U.S. audience and 62.9% of YouTube’s users falling within the demographic. Marketers are taking note, with many exploring YouTube Shorts as a contingency plan in case of disruptions to TikTok’s operations.

Advertising executives report that YouTube is offering incentives to encourage ad spend, such as ad credits for increased investment in Shorts. While these perks are enticing, many brands see Shorts as a strategic backup rather than a direct TikTok replacement. Ben Dutter, chief strategy officer at Power Digital, noted that about 25% of his clients’ TikTok budgets could shift to Shorts if needed.

However, some advertisers remain cautious, citing higher CPM costs and less effective returns on ad spend compared to TikTok. While YouTube has improved targeting options for Shorts, the platform’s ad efficiency is still being tested.

Despite these concerns, YouTube is emphasizing that Shorts is more than just a TikTok clone, citing a Morgan Stanley AlphaWise survey that found 40% of Shorts users are not on TikTok. Whether TikTok remains in the U.S. or not, YouTube Shorts is positioning itself as a key player in the short-form video space.