YouTube Advertising: The Impact of YouTube Shorts on Brand Engagement

I'm going to show you how to effectively use YouTube Shorts to transform your brand's digital presence and engagement. With Shorts now reaching 2 billion monthly users and generating approximately 70 billion daily views, this rapidly growing format represents an untapped opportunity for many brands.

Master YouTube Shorts, you'll access multiple benefits that other platforms can't match:

• Faster channel growth
• Higher engagement rates
• New monetization streams
• A massive established user base of 122M+ daily viewers (with over 70 billion views daily)

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And powerful cross-promotion capabilities between short and long-form content. Plus, YouTube's established reputation provides stability that newer platforms like TikTok can't guarantee.

Unfortunately, many marketers fail with YouTube Shorts because they struggle to adapt their budgets and strategies to YouTube's evolving ad products—particularly when reallocating TikTok spend, implementing product feeds, choosing between Shorts Select and auction, and leveraging YouTube’s new multi-format ad system.

So let’s walk through why you need to be implementing shorts asap and tangible strategies so you can get started today.

Shall we?

Why YouTube Shorts?

One organic Short: 2 million views, 90,000 likes, and 2,900 comments, 4.5% like rate.

Estimated earned media value ~$6,000.

This is why (true story).

Understanding why Shorts matters is absolutely essential to your success.

This format drives rapid channel growth in ways traditional video can’t match, with creators gaining massive reach specifically through their Shorts content.

Here are 5 big reasons why you need to hop on board with Shorts.

Reason #1: Unique audience

Shorts tap into YouTube’s 122M+ daily user base, reaching beyond TikTok’s primarily Gen Z audience. YouTube’s established reputation means less regulatory risk than TikTok.

Reason #2: Fast Growth 

Shorts drives rapid channel growth, with reach volume taking off via Shorts.

Reason #3: High Engagement

Shorts are easily shareable and often earn higher engagement, feeding viewers into full-length videos. YouTube Select Shorts ads are viewed 90% longer than ads on other platforms. Influencer-led Shorts ads have seen view-through rates as high as 15.9%.

Reason#4: Monetization & Ads 

New monetization (YouTube Partner Program for Shorts, Super Thanks) encourages creators. For brands, Shorts now integrates into ad products like Demand Gen and YouTube Select lineups.

Reason #5: Cross-Promotion

Shorts can funnel viewers to a brand’s long-form videos or other channels, creating multi-platform touchpoints. One platform houses both short and long content, boosting subscriber growth and retention.

Take a look at Mr. Beast.

He has mastered the art of repackaging long-form content into 60-second Shorts that generate millions of views, creating a seamless funnel from short to long content. Even the Voice produces Shorts featuring judges in playful Q&As to promote season premieres, driving measurable increases in fan engagement and viewership.

A few more big names who are jumping on shorts:

• Graza shares quick recipe Shorts featuring their olive oil, combining valuable content with product awareness in a natural, non-intrusive way
• ESPN keeps younger fans engaged between games through quick sports highlights and player updates in Shorts format
• Satori Graphics uses animated Shorts to teach design principles in a visually compelling, highly shareable format

Big brands are using shorts because they work.YouTube said it themselves, “As the creator community continues to invest in Shorts, this will only grow.”

But here’s the big mistake I see a lot of brands making:

Shorts vs. TikTok vs. Instagram Reels

They go wrong by treating all short-form video platforms identically. 

They miss the fundamental differences in content purpose and audience behavior across platforms. To fix this, you need to understand how these platforms work:

TikTok and Instagram

• thrives on viral challenges and trending skits
• their algorithm is interest graph-based and great for broad virality
• IG Reels often mirror TikTok trends and influencer content

YouTube

• Shorts often serve as teasers driving traffic to longer YouTube content.
• YouTube’s algorithm also favors engaging Shorts but, combined with Google’s targeting data, offers better precision to reach specific audiences when combined with paid media.
• the platform also uniquely positions Shorts prominently in-app (high visibility, even on TV apps)

YouTube’s subscriber is incredibly valuable. Any new video (short or long) reaches 100% of subscribers’ feeds, whereas TikTok/IG only shows content to a fraction of followers. This means repeat engagement (and remarketing) is stronger on YouTube.

Product feeds can now be integrated into Shorts for dynamic product ads, and while Shorts Select reservation buys are primarily for major budgets, most advertisers should focus on auction-based campaigns with targeted audience parameters. 

YouTube's 2024-25 multi-format ad system now enables simultaneous deployment across Skippable In-Stream, In-Feed, and Shorts formats to align with specific marketing objectives (massive win for media buyers).

Now that you understand the why behind YouTube Shorts and the fundamental differences between similar social platforms, let’s dive into short strategies you can start using right away:

Content Strategy for Shorts

High-level overview: use shorts for entertainment.

This continues to prove itself as one of the highest performing categories when it comes to the Shorts placement. 

I like to focus on these 6 creative aspects when building Shorts to entertain audiences:

1. Nail the first 5 seconds: use lots of motion, a bold statement, or an intriguing question. Short-form viewers love to scroll fast.
   
   
2. Nothing fancy: avoid high-polish “TV commercial” looks, and use styles common to UGC. Selfie camera monologues, everyday people in real settings.
   
   
3. Leverage Popular Audio: Sound is a huge part of the Shorts experience. Using trending music or audio clips can boost engagement. Just ensure you have rights via YouTube’s library or licensed tracks.
   
   
4. Keep it Fun: Short-form content skews toward humor and entertainment. Ads that are positive, high-energy, or witty tend to perform better. Even if you have a serious message, find a creative angle to deliver it in an engaging, light way. Quick cuts, visual effects, or text overlays help maintain a dynamic feel.
   
   
5. Use a clear CTA: Stick to one key message or product per Short ad. Too many points can overwhelm the user. While Shorts ads themselves may have limited click options, you can prompt viewers to visit your channel or search your brand.
   
   
6. Test, test and Iterate: Use YouTube Analytics to see completion rate, likes, shares, and click-through. If one Short ad outperforms, ask why. Was it the hook, music, or topic? Produce more variants around that formula. Then repurpose a winning creative across formats (Stories, Reels, TikTok) to refine it’s performance.

Track how your Shorts support subscriber growth and discover their long-tail discovery potential via YouTube search. Unlike TikTok or Reels content that may generate quick virality but lack staying power, YouTube Shorts benefit from the platform's built-in advantages for continued discovery and engagement, making them a more sustainable investment in your brand's digital presence.

TL;DR: You Can Win With Shorts

YouTube Shorts offers unique advantages over other short-form video platforms with its 2B+ monthly users and 70B daily views. Key benefits include:

1. Unmatched reach and stability - Tap into YouTube's massive user base and established platform
2. Superior engagement - Shorts viewers watch ads 90% longer than on other platforms
3. Growth engine - Drive rapid channel growth and subscriber acquisition
4. Cross-promotion power - Create a seamless funnel between short and long-form content
5. Monetization opportunities - Access YouTube's partner program and ad integration

For success, focus on entertaining content with strong hooks, authentic style, trending audio, and clear CTAs. Implement promotion strategies including optimized metadata, cross-platform sharing, audience engagement, creator collaborations, and consistent posting.

Unlike content on TikTok or Instagram trends that quickly fades, YouTube Shorts benefit from long-term discoverability through YouTube's search functionality, making your ads and audience stay for the long run.