YouTube is bringing shopping features to its TikTok-like short-form video service to diversify its revenue stream, which is being squeezed by falling ad spending, the Financial Times reported on Tuesday. Ad revenue on YouTube, owned by Alphabet, slipped to $7.07 billion in the third quarter from $7.2 billion a year earlier as some advertisers scaled back ad spend amid an economic slowdown.
The streaming service is also testing new commission schemes for influencers who sell products through links in videos, the newspaper said. YouTube did not immediately respond to Reuters’ request for comment. The report comes months after YouTube unveiled a new way for creators to monetize short-form videos by introducing advertising in its video feature, Shorts, giving video creators 45% of revenue.
The web’s dominant video site is struggling to compete with TikTok, the app that began hosting lip-sync and dance videos and subsequently grew to 1 billion monthly users.
