When YouTube first introduced Shorts in 2020, creators loved the reach but hated the payout. For years, Shorts ran on a “creator fund” that spread limited money across millions of videos. Even creators with millions of views often walked away with just a few dollars.
Fast forward to 2025, and things look very different. YouTube now shares ad revenue directly on Shorts, making it a serious competitor to TikTok. But how much can you actually earn? And is Shorts monetization worth chasing in 2025?
If you want to see how your own channel could perform, use our YouTube Earnings Calculator to plug in your views and CPM to estimate your potential revenue. Then compare it to the realities of Shorts earnings below.
What Changed: From the Shorts Fund to Ad Revenue Sharing
Until early 2023, creators could only earn from the $100M Shorts Fund. The problem? The payouts were inconsistent, unpredictable, and often tiny. A video with 1 million views might earn $20, while another with 100,000 views earned $200.
In February 2023, YouTube switched to a proper ad revenue-sharing model. Ads now run between Shorts in the feed, and revenue is split among creators based on total views. This change transformed Shorts from a growth-only tool into a legitimate monetization channel.
How Shorts Monetization Actually Works in 2025
Here’s the breakdown:
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Ads run between Shorts, not on individual videos.
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Revenue goes into a central pool.
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YouTube takes 45%, creators split the rest proportionally to views.
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If you use music, licensing fees come out of your share.
This means your earnings depend not just on your video’s performance but on the overall revenue pool and your slice of total Shorts views.
CPM Rates for Shorts vs Long-Form Videos
This is where many creators get disappointed. Shorts CPMs are much lower than long-form video CPMs.
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Average Shorts CPM: $1–$4
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Average Long-form CPM: $5–$20+ depending on niche
Why the gap? Advertisers still pay less for short-form, skippable content. Long-form videos attract viewers with higher intent, which commands higher ad spend. Shorts can still rack up huge numbers, but you need volume to match long-form earnings.
Who’s Earning Big From Shorts (And Who Isn’t)
Creators who thrive on Shorts in 2025 fall into two groups:
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Massive volume creators: Channels pumping out viral-style content, sometimes posting multiple Shorts a day, earning primarily from sheer view count.
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Hybrid creators: Channels using Shorts to funnel viewers into long-form content, memberships, or external offers where CPMs and revenue are higher.
Who struggles? Creators relying solely on Shorts ad revenue without a high posting frequency. With low CPMs, inconsistent uploads mean low payouts.
The Role of Views, Watch Time, and Audience Location
Not all Shorts views pay equally. Just like long-form, your audience matters.
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Tier 1 countries (US, UK, Canada, Australia) bring higher CPMs than global averages.
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Watch time still matters indirectly. Longer Shorts (closer to 60 seconds) can keep people in the feed longer, making ad slots more valuable.
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Consistency drives compounding growth. Daily uploads tend to snowball algorithmically.
How Much You Can Realistically Make From Shorts
Let’s look at a quick example.
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1 million Shorts views at a $2 CPM = about $2,000 gross before YouTube’s cut.
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After YouTube takes 45%, that leaves around $1,100.
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Compare that to a long-form video: 1 million views at a $10 CPM = $10,000 gross, $5,500 after YouTube’s cut.
The difference is huge. Shorts can generate reach, but per-view earnings are still modest. Want to test your own numbers? Run them through our YouTube Money Calculator to see how different CPMs impact payouts.
Strategies to Boost Earnings With Shorts
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Post in bulk: The more shots you take, the more chances at viral reach.
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Create “series” Shorts: Encourage binge-watching, which boosts your share of the ad pool.
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Balance Shorts with long-form: Use Shorts to attract traffic, then monetize with higher-CPM videos.
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Add monetization layers: Sponsorships, affiliates, merch, or digital products will earn far more than Shorts ad revenue alone.
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Target Tier 1 audiences: Craft topics and hooks that resonate with viewers in higher-paying regions.
The Future of Shorts Monetization
In 2025, Shorts monetization is still evolving. Advertisers are warming up to short-form, and rates may rise over time. But don’t expect Shorts to ever fully match long-form payouts. The smart play is to use Shorts as a growth engine — bringing in new viewers cheaply — while building deeper monetization paths elsewhere.
Final Thoughts: Should You Bet on Shorts in 2025?
Shorts aren’t dead weight anymore. They can absolutely make money, but the real value is still in reach and funneling traffic into higher-paying opportunities. If you’re willing to play the volume game, Shorts can generate steady ad income. But if you’re chasing big payouts per view, long-form still rules.
In 2025, the truth is clear: Shorts are best used as a tool to grow your channel and audience — not as your only source of income.
