As of 08:11 PM CET on October 31, 2025, the creator community is abuzz with a remarkable transformation in YouTube Shorts. Once dismissed as a low-yield experiment, Shorts are now casting a spell of profitability, with RPM (Revenue Per Mille) figures climbing dramatically and even surpassing long-form video earnings. A recent chart comparing YouTube Shorts and Instagram Reels RPM across various regions underscores this enchanting shift, offering a glimpse into a new era for content creators.
The RPM Renaissance
The data paints a vivid picture of this magical turnaround. Over the past year, RPM for western creators has soared, with averages reaching up to $0.32 in the US based on case studies from the last few months. This is a staggering leap from 2023, when a mere couple of cents per 1,000 views felt like outright theft.
The chart reveals the following regional breakdown:
- US: Dominating with an impressive $0.30 RPM for YouTube Shorts, far outpacing Instagram Reels’ minimal earnings.
- UK, Germany, Australia, Canada: Ranging from $0.15 to $0.20 RPM, reflecting a strong and consistent market for Shorts.
- India, Brazil, Indonesia: Showing growth with RPMs between $0.05 and $0.10, indicating emerging potential.
- Global Average: YouTube Shorts lead with a modest $0.02 RPM, edging out Instagram Reels and signaling broader adoption.
This surge, particularly in high-value markets like the US, transforms Shorts from a growth tool into a legitimate revenue stream, leaving 2023’s paltry earnings in the dust.
Google’s Groundbreaking Announcement
The magic intensified yesterday when Google, YouTube’s parent company, unveiled a game-changing revelation during its Q3 2025 earnings report. CEO Sundar Pichai disclosed that Shorts now generate more revenue per watch hour than traditional long-form videos. Let that sink in. This pivot marks a stunning reversal from the platform’s early days of Shorts, when the format drained ad revenue by diverting viewers from monetized long-form content.
The shift is fueled by enhanced ad integration, refined music royalty splits, and a burgeoning ecosystem of creator collaborations, turning Shorts into a profit powerhouse.
Implications for Creators
For creators, this evolution is nothing short of transformative. The jump from pennies to a robust $0.32 per 1,000 views in the US—coupled with solid returns in other western markets - means Shorts can now sustain livelihoods rather than merely supplement them.
The chart highlights the US as the gold standard, where creators are reaping rewards that make 2023’s earnings feel like a relic of the past. Globally, while the average RPM remains modest, the upward trajectory suggests untapped potential as YouTube hones its monetization model.
However, this financial boon coincides with YouTube’s updated Community Guidelines, effective November 17, 2025, which impose restrictions on gambling and violent gaming content.
While Shorts’ rising RPM offers a silver lining, creators must adapt to these new rules, potentially steering clear of restricted themes like GTA-style chaos or skin betting to maximize earnings. The platform’s push for advertiser-friendly content could reshape content strategies, pushing creators toward creative innovation within safer boundaries.
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The Broader Impact
This magical surge is more than a numbers game - it’s a cultural and strategic pivot. YouTube is doubling down on a multi-format ecosystem, with Shorts at the forefront alongside livestreams and long-form videos.
The platform’s investment in AI-driven tools and high-profile events (like the recent NFL livestream with 19 million viewers) complements this approach. As Grand Theft Auto VI approaches its May 26, 2026 release, the tension between creative freedom and monetization will be tested, but Shorts’ newfound profitability provides a solid foundation for creators to build upon.
In a digital landscape where every view counts, YouTube Shorts are weaving a spell of success in 2025, promising a future where short-form content reigns supreme.
