TikTok Has to Up Their Monetization Game if They Want to Compete with YouTube Shorts

Introduction

The video content platform TikTok has to up its monetization game if they want to compete with YouTube shorts because YouTube shorts is rolling out its shorts monetization in February 2023 and this is bringing huge pressure on TikTok to come up with a new monetization plan for its creators. If TikTok wants to thrive then it has to work out how to roll out monetization as soon as possible or the whole company will fall flat, just like the short-video app Vine which was purchased by Twitter back in 2012 but shut down two years later. (Van, 2017)

Introducing YouTube Shorts

YouTube has introduced a new medium for creators called YouTube Shorts, which offers monetization for short-form content starting February 2023. This is expected to kill TikTok's popularity and Google is promoting this on their search engine. TikTok has so far not come up with a plan that would make it an attractive platform for content creators and they don't have the same discoverability advantages as youtube because they are not eligible for google search results and they don't have an Adsense account or an online shop. TikTok also has a lot of copyright violations that disqualify them from being eligible for the Partner Program and licensing fees.

The Pressure on TikTok

With the release of Youtube Shorts, TikTok needs to find a new monetization strategy for its creators. There are many options available on TikTok such as merchandise, music, and news. TikTok has also had success with long-form content and community guidelines. However, due to copyright violations and Adsense account termination, TikTok has lost a lot of opportunities that have been monopolized by Youtube. The best way for TikTok to monetize is through licensing fees or an online shop where the company can sell its merchandise. TikTok should partner up with companies who already have experience in this area like Amazon or Walmart so that they can expand their audience base.

TikTok's Current Monetization Options

In order for TikTok to compete with YouTube, TikTok needs a better monetization option for its creators. Currently, TikTok only offers Online shopping but it isn't sustainable because it does not allow you to make money off of your content in any way shape, or form. Online shops are also not a good idea because many people are unaware that the businesses they are supporting are actually profiting off of them and violating copyright laws. The best monetization options would be partnering with other companies that offer licensing fees and youtube shorts as well as improving community guidelines so that people can post more long-form content without fear of getting banned.

What Needs to Change

In order to compete against Youtube shorts, TikTok needs to come up with a better monetization plan for its creators and one way it can do this is by introducing an Adsense account-like feature. The TikTok Partner program could also be improved by introducing licensing fees so that creators can make money off of their content. But it’s not just about the monetization, TikTok also needs to tighten up its community guidelines and copyright violations in order to protect its artists from getting sued.