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YouTube Generated $28.8 Billion in Ad Revenue in 2021, Fuelling the Creator Economy

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YouTube Moves Away from Original Programming to Focus on Creator Funding Initiatives

While TikTok continues its meteoric rise, and looks set to become an even more influential platform this year, YouTube remains the clear leader in the online video space. And it looks set to maintain the top spot for one key reason – its revenue-sharing program, which sees billions shared with creators each year, and which no other platform is close to matching just yet, in terms of a sustainable creator monetization model.

YouTube’s Partner Program, which is now well embedded, and established within its own ecosystem, is now a key driver of the broader creator economy. And this week, as part of parent company Alphabet’s Q4 performance update, we got some more insight into just how significant this element has become.

As per Alphabet’s report, YouTube generated $8.6 billion in ad revenue in Q4 2021, while for the full year, YouTube brought in $28.8 billion in advertising income.

As you can see, that’s a significant jump on YouTube’s 2020 performance. And with around 55% of YouTube ad revenue going to creators, that means that YouTube paid creators more than $15 billion throughout 2021, a huge chunk of the overall creator economy funding.

Though that’s not exact. YouTube does share 55% of its ad revenue with creators, but with its move to monetize all content, not just videos in its Partner Program, as of November 2020, that does mean that the revenue split is less direct than a clear 55% of its overall take.

But even so, it’s still a huge amount, and a massive lure for YouTube, which the platform will continue to use to try and sway creators away from TikTok, by offering more incentive, more opportunity and greater rewards for their efforts.

YouTube, of course, has also been looking to combat the rise of TikTok with its own alternative in ‘Shorts’, which, according to Alphabet CEO Sundar Pichai, continues to see significant momentum.

YouTube Shorts continues to drive significant engagement. We just hit five trillion all time views, and have over fifteen billion views each day globally. This is helping our creator community reach newer and bigger audiences. In fact, more people are creating content on YouTube than ever before. Last year, the number of YouTube channels that made at least $10,000 in revenue was up more than 40% year over year. And we’re continuing to improve support for Artists and Creators.”

Pichai also notes that more creators are now earning money from YouTube’s non-ad products, including Super Chat and Channel Memberships, while its $100 million Shorts Fund is now available in more than one-hundred countries.

Creator funds like this can be problematic, in that the amount remains static, while usage changes (as recently explained by YouTube creator Hank Green). But YouTube, with its expanded funding models, is in a much more sustainable, profitable and beneficial position for creators than emerging platforms like TikTok, which is still working out how to best facilitate creator funding within short video clips.

Short videos are too short to insert mid-stream ads, which makes direct revenue attribution more difficult. That’s pushed TikTok to explore other alternatives, like brand partnerships, though it remains to be seen whether TikTok can establish enough of a business model on this front to keep its most popular creators around long term.

Another option that TikTok’s exploring is eCommerce, and enabling creators to generate revenue by selling products tied to their TikTok clips.

Which YouTube, too, is testing:

As per Pichai:

“We’re making it easier for viewers to buy what they see – and simpler for advertisers to drive action with innovative solutions like product feeds in Video Action Campaigns and emerging formats like live commerce. Backcountry.com generated a 12:1 return-on-ad-spend with product feeds in 2021 and plans to double its investment in 2022. While Samsung, Walmart, and Verizon partnered with creators to host shoppable holiday livestream events in the US”

Just as this is a key opportunity on TikTok, it’s also similarly significant on YouTube – and potentially, even more so, with many people searching on YouTube for product info, while YouTube clips are also linked to Google searches.

That could make this another valuable avenue for YouTube creator monetization, and another element in which YouTube could beat TikTok out, with more incentive for big-name stars.

Also interesting – Alphabet says that it will test some of its eCommerce ideas for YouTube in India first “because we can get quicker feedback”.

“A very dynamic, youthful population. And so we’ll do it there, and then roll it out globally. So we are constantly looking for opportunities like that.”

And in another direct assault on TikTok, YouTube’s also now testing commerce links in Shorts:

“Super early also on testing how shopping can be integrated with Shorts. And so, again, early, but I find the opportunity space here pretty broad, and it’s exciting.”

It’s interesting to consider the broader chess game at play here, and how the bigger players are looking to counter the growth of TikTok where they can, and hit the rising platform where it hurts, in terms of monetization and creator promotion tools.

TikTok is the cool app of the moment, and it’s definitely been great at capturing attention. But just like Vine before it, creator monetization remains a challenge – and already TikTok creators are calling for a bigger slice of the revenue pie, under threat of them potentially taking their content to other platforms instead.

Which is exactly what happened to Vine, with its top stars calling for more money as the app continued to grow, which eventually lead to them migrating to other apps.

TikTok is far bigger now that Vine ever was, and seems too big, really, to fail at this stage. But then again, if this does become a key sticking point, and creators do take their talents, and audiences, to other apps, it remains a possibility that TikTok might not make it in the long term.

Meanwhile, YouTube continues to go from strength to strength, and iterate on its already established monetization models. TikTok may be popular, but the battle for online video supremacy is still ruled by the incumbent, and will be for the foreseeable future at least.


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TikTok stars are using Fanova to generate income from social media

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TikTok stars are using Fanova to generate income from social media

Image courtesy of Fanova

Opinions expressed by Digital Journal contributors are their own.

In recent years, Latin American influencers and content creators have witnessed a remarkable surge in popularity. Despite boasting substantial and highly engaged fan bases, these influencers often find themselves in the shadows, overlooked for lucrative brand deals and partnerships. This oversight is especially pronounced, given their substantial influence over a diverse, global audience.

The moment is ripe for these creators to carve out a dedicated space where they can effectively monetize their exceptional talents. Such a platform would empower Latin American influencers and create fresh opportunities for profound collaborations and enhanced engagement with audiences worldwide.

This is where Fanova comes into play, revolutionizing the Latin American creator economy. In an environment where the creator market is still in its nascent stage, and many talented individuals remain underserved, Fanova is pioneering a new era for creators to make real money doing what they love.

Latin America’s creative minds have often found their potential hindered by a lack of opportunities. Fanova is here to break the barriers and provide a platform that allows them to monetize their content and recognize the value of their unique talents. The creator economy in the region is brimming with untapped potential, and Fanova seeks to unleash it. Creators with massive, loyal followings often find themselves unable to monetize their social media presence effectively or are overlooked by brand deals. Fanova aims to change that narrative.

With Fanova, creators have the freedom to set their monthly subscription prices, giving them the ability to provide exclusive content to their most devoted fans while ensuring a steady, reliable income month after month. Additionally, they have the flexibility to establish their own pricing for direct messages, creating a direct avenue for intimate one-on-one interactions with their followers.

By using Fanova, creators can deepen their connection with their audience by sharing a wide range of captivating content, such as behind-the-scenes glimpses, travel adventures, workout routines, insightful blogs, engaging podcasts, exclusive photos, and much more. It’s a dynamic platform that enables creators to monetize their craft and foster a stronger, more personal bond with their fan base.

Fanova is attracting top talent in the Latin American creator economy. Melissa Andress recently joined the platform. Renowned as @melissaandress on Instagram and @melipandaa on TikTok, Melissa boasts a significant and dedicated following of 1.6M and 13.7M followers, respectively. She uses Fanova to share daily behind-the-scenes of her life with her followers, treating it like a private story.

“I was immediately interested in the general concept of this platform: having a place to document behind-the-scenes content and not relying solely on brand deals seemed great to me,” Melissa explained.

Her impressive online presence has contributed to Fanova’s success in a significant way. Her engagement and credibility have introduced countless new creators and users to the platform.

Fanova is already leaving its mark in the Latin American creator economy, having attracted 150 creators. Even more impressive, Fanova has paid out over $100,000 to these creators. This is not just a promise; it’s a proven reality.

Fanova is a clean subscription platform, so nudity and explicit content is not permitted. The platform employs a team of moderators as well as artificial intelligence to monitor content.

For creators in Latin America, Fanova represents a new beginning. It’s an opportunity to be part of a transformative journey where your passion can be your paycheck. It’s a place where talent meets technology, and creators are valued. The new application is leading the charge to monetize content in Latin America, one passion at a time. For more information, visit www.fanova.io.



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Merriam-Webster’s 2023 Word of the Year

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Merriam-Webster's 2023 Word of the Year

The wordsmiths over at Merriam-Webster have announced their official “Word of the Year for 2023,” they say it’s something we are “thinking about, writing about, aspiring to, and judging more” than ever.

The word is authentic.

According to the dictionary, the most common definitions of authentic are “not false or imitation,” “being true to one’s own personality, spirit, or character,” and “worthy of acceptance or belief as conforming to or based on fact.”

Merriam-Webster says the word saw a “substantial increase” in lookups this year. That’s probably because we now live in a world where artificial intelligence, deepfake technology and questionable memes challenge our basic notions of reality.


Authenticity is also seen as a commodity at a time when influencers build their brands on social media while attempting to seamlessly pitch their “favorite” products. These days, the average person scrolls through over 43 feet of content every day on social media. After being exposed to countless images of people, it becomes easier to spot the phonies from those who are being their authentic selves.

“When we look at common threads across the thousands of influencer marketing campaigns we’ve run at The Outloud Group over the last 15 years, the similarity between all of our best-performing brand creator partnerships is pretty simple: true authenticity,” Bradley Hoos, CEO of The Outland Group, a full-service influencer marketing agency, writes in Forbes.

Merriam-Webster adds that authenticity is a trait people strove to find for themselves in 2023.

“Celebrities like singers Lainey Wilson, Sam Smith, and especially Taylor Swift all made headlines in 2023 with statements about seeking their ‘authentic voice’ and ‘authentic self,” Merriam-Webster writes. “Headlines like Three Ways To Tap Into Taylor Swift’s Authenticity And Build An Eras-Like Workplace associate this quality with pop-culture superpower.”

The dictionary also highlighted more words that trended in 2023, including:

“Rizz” — Internet slang for “romantic appeal or charm” (noun) or “to charm, seduce” (verb), popularized by YouTuber Kai Cenat, was added to the dictionary.

“Deepfake” — Altered images or recordings that convincingly misrepresent someone’s actions or words, making it hard to distinguish between real and fake.

“Coronation” — The crowning of a new British monarch, King Charles III, sent people to the dictionary’s website to learn the term’s meaning.

“Dystopian” — In 2023, “dystopian” was a verb applied to many frightening real-world issues and was used to describe the trend in video games, books and movies depicting a dark future.

“EGOT” — Lookups for “EGOT” spiked in February when Viola Davis won a Grammy for the audiobook version of her memoir. That made her one of the 18 people to become an EGOT, or winner of an Emmy, Grammy, Oscar and Tony awards.

“X” — When Twitter was rebranded as X on July 23, searches for the term spiked at Merriam-Webster.com, where curious people went to discover more about the mysterious letter.

“Implode” — When a submersible that went to visit the remains of the Titanic in June imploded, the term had a considerable spike as people attempted to learn more about the passengers’ fate.

“Doppelgänger” — This term got hot multiple times in 2023. It trended twice due to stories out of Germany and New York involving the attempted murder or suicide of someone’s lookalike. Further, September saw the release of Naomi Klein’s book, “Doppelgänger: A Trip Into the Mirror World.”



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X Experiments with New Grok AI Access Buttons In-Stream

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X Experiments with New Grok AI Access Buttons In-Stream

I’m not sure that X’s “Grok” AI chatbot is ever going to become a major element of the in-app experience. But owner Elon Musk has invested a lot into the new tool, so soon, it’ll be added to a lot more surfaces in the app, as X looks to make it a bigger enticement to get more subscribers to its X Premium+ subscription offering.

Last week, Musk noted that, soon, Grok would be available to analyze X posts in-stream.

In order to facilitate this, X is now looking to add a new Grok button to the lower function bar in the app, seemingly, at this stage a least, replacing the current Communities shortcut.

As you can see in this example, posted by X News Daily, a new Grok button may soon be displayed in prominent position, right in the middle of the bottom tray. Which would then make it easier to consult Grok for analysis of content, or potentially to assist in post creation, while there’s also another Grok tab in the sidebar, providing alternative access.

Grok chatbot

All of this is still in flux, as X works out the best placement for the option. But one way or another, Grok is coming to the main X UI, which could see a lot more content being pumped out by Elon’s sarcasm-focused AI bot, which is trained on real-time X conversation and data.

Though, presumably, access will remain limited.

Right now, Grok is only available to selected users who have subscribed to X’s highest-priced “X Premium+” monthly subscription package, which currently costs $US16 per month. X is rolling out Grok access to Premium+ subscribers based on when they signed up to the program, as it gradually expands the presence of its AI chatbot tool.

You would assume, then, that these new buttons and Grok analysis options will only be made available to those who are paying a premium for the app, though whether that’s actually worth the $US168 a year (annual plan) to gain access is another question.

But then again, millions of people have signed up to ChatGPT, and Elon seems confident that Grok will be as good, if not better than that. And in that sense, maybe Grok will prove to be a winner, which could then help X to maximize its subscription revenue intake, and broaden its income streams.

It’s impossible to say, because Grok is only in limited access, and as such, there’s not a lot of insight as to its potential value, or not, as yet.

But Elon wants to ensure that there remains a generative AI option that’s not biased, and not censored, a market gap that he believes Grok can fill. And again, given his investment in the required technology (Elon reportedly spent “tens of millions of dollars” on GPUs for his alternative AI project), he’ll also be looking to glean some return on that outlay, which will likely see X looking to make as big a push on Grok as it can to maximize interest.

Whether that’s a positive or negative, we’ll soon find out.



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