Mashable: The company's usual split for videos outside of Shorts is 55%, and TikTok has a $1 billion fund for rewarding creators.

As competition from TikTok increases, YouTube has introduced a new mechanism for producers to monetize short videos.

The video streaming service owned by Google announced on Tuesday that it will begin showing advertisements within its Shorts video feature and would share 45% of the income with the content producers.

The company's usual split for videos outside of Shorts is 55%, and TikTok has a $1 billion fund for rewarding creators.

Now, Creators having at least a thousand subscribers and ten million views on Shorts over a 90-day period are eligible to apply for the Partner Program, which offers a cut of the income. Ad revenue would be pooled and distributed to content providers. Whether or whether the advertisements use music, the creators will still receive a 45 percent share of the revenue.

YouTuber and former hairstylist Kris Collins praised YouTube's decision to split ad money with creators of the popular video format, Shorts. She praised the fact that "other sites are focused on bringing folks their 15 seconds of fame," saying, "Great. "However, YouTube is adopting a unique tack. They're making it easier for artists to produce work in several media."

YouTube has had a hard time keeping up with TikTok, an app that has grown from humble beginnings hosting lip-sync and dance videos to a massive audience of 1 billion people every month.

Late in the year 2020, YouTube introduced a new format called "Shorts," which features videos no more than a minute long and now had over 1.5 billion monthly users.

In an effort to retain its talented creators, YouTube set aside $100 million in April to incentivize the production of short films. As reported by the New York Times, TikTok has failed to match the company's new revenue-sharing scheme, which is designed to be a greater and more sustainable attraction than the fund.

YouTube's Vice President of Content Partnerships, Tara Walpert Levy, has stated that because of the company's large investment in establishing the Shorts feature, the company will share a reduced percentage of sales with artists.

Google made $14.2 billion from advertising on YouTube in the first half of this year, an increase of 9 percent over the same period last year. Recent quarterly ad sales, however, were the slowest growing since the data was first made public three years ago. A number of financial experts have pointed to TikTok as a contributor, among global economic reasons.