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How Much I Make on TikTok vs Shorts vs Reels (AND WHAT DOES TIKTOK WANT!)

Introduction

In today's digital landscape, social media platforms have become powerful monetization tools for content creators. Recently, a judge ruled that I could still use TikTok despite my state’s ban, prompting me to reflect on my experiences and earnings across various short-form video platforms: TikTok, YouTube Shorts, and Instagram Reels. While I enjoy using TikTok and have built connections and income through it, I also harbor concerns about the platform, primarily due to its ties with a government not aligned with the U.S.

Comparing Platforms

YouTube Shorts

To start, YouTube Shorts, which is YouTube’s answer to short-form video, appears to encourage creators to stay away from TikTok. Here’s what I’ve observed:

  • Video Length: Shorts caps video length at one minute.
  • Monetization Structure: Currently, YouTube shares revenue with creators based on traditional advertising revenue. This means earnings tend to be stable but relatively low. Last month, I earned approximately $ 45,000 with 40 million views, equating to a 10-cent CPM (cost per thousand views).

Instagram Reels

Next up is Instagram Reels:

  • Incentive Structure: Instagram's approach seems a bit chaotic. It encourages creators to fend for themselves when it comes to monetization.
  • Ad Revenue: While they do have ads on Reels, their revenue-sharing model is quite different and does not seem very profitable. I made about $ 1,000 last month from Reels, but the views are hard to track, leading to a very murky picture of earnings.

TikTok

Now, let’s dive into TikTok, which is quite unique in its approach:

  • Monetization: TikTok is currently focused on incentivizing longer videos through its Creativity Program Beta. To qualify for monetization, videos must be at least one minute long, which is counter to the trend of ultra-short content on platforms like YouTube Shorts.
  • Earnings: The CPM I earn through TikTok has varied: initially, I saw rates at about 80-90 cents per thousand views, but this has since dropped to roughly 50-60 cents. That said, despite lower CPMs, I can potentially drive a substantial income due to the view counts I receive. Last month, I noted 37 million views, which theoretically could yield over $ 20,000, depending on how many are categorized as “qualified views.”

The Push for Social Commerce

TikTok realizes that traditional advertising isn’t as effective for its model. Therefore, the platform is evolving towards social commerce. With TikTok Shop, for instance:

  • Marketplace: Creators can sell products directly within the app, streamlining the purchasing process.
  • Revenue Cut: Currently, TikTok takes about 5% of sales, which serves both creators and buyers by reducing friction in transactions.

The shift to social commerce aims to maintain user engagement while generating direct revenue for TikTok, a strategy meant to counterbalance the difficulties inherent in advertising.

Conclusion

As TikTok, YouTube, and Instagram compete for creators' attention and content, the monetization landscape continues to evolve. Each platform presents its own opportunities and challenges for creators. Given TikTok's current trends, it illustrates a push towards longer content, the need for monetization innovation, and a shift in how we engage with social commerce.

Keywords

  • TikTok
  • YouTube Shorts
  • Instagram Reels
  • Monetization
  • CPM
  • Creativity Program Beta
  • Social commerce
  • TikTok Shop

FAQ

1. How much do creators make on TikTok compared to YouTube Shorts and Instagram Reels? Creators' earnings fluctuate, but on average, TikTok currently offers between 50-60 cents per thousand views, while YouTube Shorts offers around 10 cents. Instagram Reels' earnings are harder to pin down but are comparatively low.

2. What is the TikTok Creativity Program Beta? The Creativity Program Beta incentivizes creators to make longer videos (over one minute) by offering a relatively higher CPM compared to other TikTok video formats.

3. Why is TikTok moving towards social commerce? TikTok recognizes that traditional advertising models aren't fully effective within its platform and seeks to enhance monetization through features like TikTok Shop, which allows creators to sell directly within the app.

4. How does TikTok's monetization model compare to YouTube and Instagram? Unlike YouTube's ad-revenue sharing model, TikTok's monetization largely comes from unique initiatives like the Creativity Program and the push for social commerce, making its approach more innovative but less stable compared to YouTube.

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