Short-form video has become a must-have for small businesses and brands active on social media. When deciding between the two most popular video platforms, TikTok and YouTube Shorts, consider what you and your customers prioritize: immediate reach, reliable income, or transitioning from short clips to longer content. Here, we outline four key factors for small business owners to consider regarding marketing and monetization on each platform.
Comparison of Monetization and Creator Earnings
YouTube Shorts now shares ad revenue with creators—about a 45% cut of allocated Shorts ad revenue—and lets creators layer on income from Super Thanks, channel memberships, shopping, and long-form ad revenue that Shorts can help drive. That combination makes YouTube a more predictable place to build a sustainable, long-term income stream. (Source: Stack Influence)
While Canadians do not have access to the TikTok Creator Fund, there are still ways to make money on TikTok. Working with artists, affiliate marketing, and selling merchandise directly through TikTok are a few ways to financially benefit from the app. (Source: Finder)
Takeaway for small businesses: If your goal is generating consistent income through methods like recurring memberships, product funnels, or sponsorships, choosing YouTube Shorts provides a safer and more sustainable choice. If you want fast, unpredictable spikes in earnings or one-off bursts that can boost short-term sales, TikTok has more immediate payoffs.
Analysis of Algorithm and Discoverability
TikTok’s For You Page still leads the pack for pure discoverability. New creators can go viral overnight, and a single well-timed clip can expose your brand to millions with little prior following.
YouTube Shorts favours watch time, completion rates, and channel relevance. It’s less likely to reward a single viral experiment, but it funnels viewers into your broader channel—and into longer videos where you can deepen trust and drive conversions. Consistency on Shorts tends to build a more loyal, monetizable audience over time.
Takeaway for small businesses: Use TikTok to test creative hooks and get fast validation. Use YouTube Shorts to scale what works into a content funnel that captures subscribers, email signups, and repeat customers.
Audience Demographics and Reach
TikTok has expanded beyond Gen Z into Millennials and older users, but its cultural engine is trend driven. This makes it ideal for lifestyle, entertainment, and impulse purchases.
YouTube Shorts benefits from YouTube’s massive user base (2+ billion monthly users) and search integration, reaching audiences who are often looking for how-to content, reviews, and longer-form learning—people more likely to convert on higher-consideration purchases or B2B services.
Takeaway for small businesses: If your product or service sells on impulse or benefits from trendy formats (food, fashion, small purchases), TikTok is powerful. If you offer higher-priced or carefully considered products, you can expect YouTube Shorts to provide more favourable returns in the long run.
Evaluation of Long-Term Platform Stability and Growth Potential
YouTube’s backing by Alphabet and its ties to search, ad systems, and connected-TV distribution make Shorts a more stable foundation for a 5–10-year strategy. Although TikTok remains culturally influential, businesses should consider platform risks related to regulatory and ownership issues in some markets for their long-term plans.
Takeaway for small businesses: Consider YouTube Shorts as the foundation for long-term ownership and stability, and view TikTok as an opportunistic channel for growth.
Conclusion
For small businesses chasing predictable monetization and a career-building audience, YouTube Shorts is the safer, more sustainable choice; for brands that need fast virality and trend-driven spikes, TikTok is still indispensable. However, if you have limited time and budget, consider whether achieving quick results or building a sustainable revenue stream is more important to you. Above all, ensure that the platform you select is in harmony with your overarching business goals and the audience you aim to reach. It’s essential to carefully weigh the strengths and weaknesses of each platform before solidifying your business strategy.