Ad inventory on YouTube Shorts is exploding—and it’s only just getting started.
Why? Because creators are flocking to Shorts in 2024!
Not just chasing views but chasing revenue. And that shift is great news for direct response advertisers!
More creators means
👉 More monetized, ad-friendly content
👉 More premium inventory to run against
👉 A more stable ecosystem (with Google’s backing) to scale inside
And if you want a peek at what top advertisers are already doing to crush it on Shorts – we’ve got you.
At the end of this article, we’ll share 3 of the best-performing Shorts ads running right now (yes, they’re swipe-worthy).
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But first, let’s break down what’s driving this shift—and why it’s opening up a golden window of opportunity for DR marketers who act fast.
1. 💰 YouTube is actually sharing ad revenue now
Let’s be real: TikTok’s monetization system has always been… fuzzy.
Between the Creator Fund (with shrinking payouts) and their new “Creator Rewards Program” (which only applies to super viral videos), most creators end up confused—and underpaid.
But YouTube took notes!
In 2024, they rolled out a much more creator-friendly model for Shorts:
Here’s the simplified version of how it works:
Pool – Ads run between Shorts, and the total revenue is pooled.
Calculate – YouTube splits that pool based on watch time from monetizing creators.
Distribute – Your “share of the share” is calculated based on your video views.
Revshare – You get paid. No mystery math, no guessing games.
This rev share system means creators are finally making real money from short-form content—without needing to go viral every day or sign weird brand deals.
Oh, and if you’re also posting long-form content on your channel? YouTube already has a well-oiled monetization machine for that too. So now, Shorts becomes the top of your funnel and a revenue stream.
Simple. Scalable. Transparent.
For creators, it means real income potential.
For advertisers? It means more motivated creators pumping out quality content—aka more monetized Shorts to run ads in.
2. ⛔ TikTok ban rumors are still a thing (and creators are paying attention)
TikTok bans have gone from “conspiracy theory” to “actually happening.”
First, it was U.S. government devices. Then entire states started banning the app on school and public networks. Now, just months after signing an executive order to push back the TikTok ban deadline, President Donald Trump has hinted at developments regarding the platform’s sale.
Whether or not that happens is anyone’s guess—but creators aren’t too happy waiting to find out.
They’re hedging their bets by doubling down on YouTube Shorts.
And YouTube made it easy: In October 2024, they increased the max length of Shorts to 3 minutes, giving creators even more flexibility to tell better stories—without sacrificing attention or risking content bans.
You get TikTok-style content freedom, minus the geopolitical drama.
That’s good news for advertisers looking to tell better stories in short form—without worrying about platform volatility.
3. 📈 Built-in audience (Thanks, YouTube algorithm)
YouTube is more than just a video platform.
It’s the second-biggest search engine on the planet—and a recommendation algorithm that wants you to succeed (if you play the game right).
Shorts tap directly into that ecosystem.
Post a Short, and it can surface on:
The Shorts feed
Homepage recommendations
Trending sections
Search results
AND as teasers before your long-form videos
It’s not just a viral roulette!
It’s a content engine that connects your short-form clips to your full channel, your community tab, your playlists, your lives… You get the idea.
Compare that to TikTok, where a viral post might bring you 500K views and… that’s it. No long tail, no follow-up, no ecosystem to plug into.
On YouTube, one Short can lead people into your entire world.
Creators love that reach. Advertisers love the exposure!
4. 🆕 You’re reaching new audiences (that actually buy stuff)
TikTok is great if you’re targeting teens.
But what if you’re trying to build a business, sell products, or attract brand partners with a budget?
You need eyeballs with buying power!
YouTube’s core demographic skews older—especially in the 25–34 age range.
These viewers are:
More likely to make purchases
More loyal to creators
More interested in depth, context, and storytelling
Most likely, with more disposable income
Better alignment for DTC/eCommerce offers
Prone to better attention spans
For anyone selling merch, launching courses, or partnering with ecomm brands, this shift is huge. You’re no longer stuck trying to convince a 14-year-old to buy a $97 product.
You’re speaking to people with credit cards—and curiosity.
5. 🤦♂️ Creators are tired of playing TikTok’s game
Here’s something you’ll hear if you talk to enough creators:
“TikTok just keeps changing everything.”
From algorithm updates to shadowbans to weird restrictions on what can and can’t be monetized, creators are constantly trying to keep up.
Here’s one of the many examples of people’s complaints:
It’s exhausting—and unstable.
YouTube isn’t perfect, but it’s consistent – its rules are clearer, and their monetization path is established. And with Google’s backing, they’re playing a much longer game.
Shorts is just one piece of that puzzle—but it’s a powerful one. Especially now that creators can post 3-minute clips, test storytelling formats, and funnel viewers to longer videos, email lists, and paid offers.
You’re no longer renting an audience—you’re building a brand.
All of this means more quality content inventory for advertisers like you to tap into. No more rolling the dice on TikTok’s next algorithm mood swing!
So... What does all this mean for direct response advertisers?
As more monetized content floods the Shorts feed, the opportunity for direct response advertisers is only going to grow:
✅ More ad inventory
✅ Higher intent viewers
✅ Longer shelf life than TikTok
✅ Better alignment with proven YouTube ad strategies
Want a shortcut?
Here are 3 examples of the top-performing YouTube Shorts ads we’ve spotted recently using the VidTao ad spy tool – tested, scaling, and swipeable:
1. Podcast-style, AI-driven ad that challenges traditional language learning
Key takeaways from this ad:
1️⃣ Contrast hooking formula—800 hours vs. 135 hours creates instant curiosity.
2️⃣ Competitor take-down—Calls out Duolingo-style apps as ineffective distractions.
3️⃣ “Only one” positioning—Frames JumpSpeak as the only app with real conversation practice.
4️⃣ Scientific credibility—Mentions National Training Laboratories for legitimacy.
5️⃣ Risk reversal—A 100-day trial removes buying hesitation.
2. Founder-led, brain Health Mushroom Ad
1️⃣ Founder-led authority—Paul Stamets isn’t just an expert, he’s the founder, which makes the endorsement feel authentic and high-trust.
2️⃣ Curiosity-driven messaging—“Smart mushroom” creates intrigue and boosts shareability.
3️⃣ Minimalist but powerful science claims—“Supports neurogenesis” feels legitimate without over-explaining.
4️⃣ Longevity framing—Subtly makes Lion’s Mane feel essential for aging.
5️⃣ Soft CTA approach—Instead of pushing a sale, the ad lets curiosity drive action.
3. Doctor-led, credibility-driven ad for sleep upgrade
Key takeaways from this ad:
1️⃣ Expert-led storytelling builds instant trust—Dr. Maxfield’s presence elevates product credibility.
2️⃣ Sensory demonstration makes it feel real—The cheek rub + pillow test creates desire through visuals.
3️⃣ Science-backed benefits turn luxury into necessity—Silk isn’t just soft, it’s better for your skin & hair.
4️⃣ No hard CTA needed—desire drives action—Instead of “Buy Now,” the ad lets curiosity do the work.
5️⃣ Blends organic content style with direct response strategies—Making it feel authentic but persuasive.
And that’s a wrap!
If you want to keep an eye on what top advertisers are doing with YouTube Shorts—check out the VidTao blog, where we’re breaking down winning content and strategies every Tuesday in our ‘2 Shorts Tuesday’ series – don’t miss out!
We hope you find this useful, keep rocking & have a great week! 🚀
Want to brainstorm with our team on new ways to scale your business with YouTube Ads (and other performance video platforms)?
Join us for a free YouTube ad brainstorming session:
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Kristina Jovanovic, Social Media Manager & Content Writer
Fascinated by human behavior, Kristina graduated with a degree in Psychology and joined our agency to put her knowledge to good use as a Media Buyer. She later transitioned into her current role, where she draws on her knowledge of the human psyche and marketing strategy, as well as hands-on experience in creative development and media buying at Inceptly to share useful insights with our readers.
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