YouTube’s short-form video push has reached a critical financial milestone. Speaking this week, Neal Mohan, chief executive of YouTube, confirmed that YouTube Shorts is now generating the same revenue per watch hour as traditional long-form YouTube content in several countries, including the United States. In some regions, Shorts is now outperforming the core platform on that metric.
Mohan shared the update during an appearance at the MoffettNathanson Media, Internet & Communications Conference, just a day after YouTube’s annual Brandcast advertising showcase in New York. He attributed the rapid improvement in Shorts monetisation to a combination of increased ad inventory, more precise AI-driven ad placements, and continued growth in user engagement.
According to Mohan, the viewing of YouTube Shorts rose 20% year-over-year in the first quarter of 2025. He added that roughly 70% of YouTube channels are now publishing Shorts, underscoring the deep adoption of the format by creators. The shift is especially pronounced among younger audiences, who increasingly prefer interactive, participatory video experiences.
Beyond mobile viewing, YouTube is also seeing strong momentum on connected televisions. Over the past year, ads viewed on TV screens have driven more than one billion conversions, Mohan said. In early 2025, television overtook mobile devices as the primary way people watch YouTube, reflecting the platform’s growing role in living-room entertainment.
At Brandcast, YouTube also introduced new advertising packages designed to surround major cultural moments such as the Oscars, the Met Gala, and the PGA Championship. These offerings enable brands to appear prominently in search results and related content, providing advertisers with a larger and more targeted presence during high-attention events.
Artificial intelligence remains central to YouTube’s strategy. Mohan said the company has invested in AI for years, using it to enforce platform policies and power its Content ID copyright system. He also highlighted AI’s role in creative tools, including Dream Screen, which lets creators generate images or videos from text prompts using technology developed by Google DeepMind.
YouTube continues to balance its advertising business with a growing subscription portfolio that includes YouTube Music, Premium, YouTube TV, and NFL Sunday Ticket. The company recently reported more than 125 million subscribers across its music and premium services, a sharp increase from a year earlier.
Industry analysts estimate that if YouTube were to operate as a standalone company, it could be valued between $475 billion and $550 billion, representing nearly a third of Alphabet’s total market capitalisation. After generating $54.2 billion in revenue in 2024, YouTube is expected to challenge Disney for the top spot among global media companies in 2025.
The milestone arrives as YouTube marks its 20th anniversary, a moment Mohan acknowledged during his remarks. As Shorts reaches financial maturity alongside traditional video, the platform appears positioned to extend its influence across both creator culture and the broader media industry.
