In an ambitious move to enhance its vertical video ecosystem and compete with TikTok, YouTube has unveiled a new monetization feature for creators. Announced on Thursday, the platform now allows viewers to purchase “Jewels,” a form of digital currency, to send animated “Gifts” during vertical livestreams. These gifts appear as dynamic on-screen animations, adding a layer of engagement and support for creators during live sessions.
This feature mirrors TikTok’s wildly popular live gifting system, where fans buy “coins” to send gifts of varying values, directly supporting their favorite creators. By integrating a similar mechanism, YouTube aims to capture the attention of both creators and audiences who thrive in the vertical livestreaming space.
How It Works
When viewers buy Jewels and send Gifts, creators earn a currency called “Rubies.” Each Ruby is worth $0.01, translating to $1 for every 100 Rubies earned. However, since the cost of Jewels varies depending on the bundle purchased, the effective revenue split can fluctuate. This structure adds a bit of unpredictability to the creator’s earnings.
For a limited time, YouTube is sweetening the deal with a 50% bonus on Rubies earned from Gifts. Eligible creators can receive up to an additional $1,000 per month during the promotional period, which lasts for the next three months. This bonus, combined with regular Ruby earnings, provides creators with a significant opportunity to maximize their income.
Vertical Livestreaming: The Future of Creator Engagement
YouTube’s new gifting feature is exclusively available for vertical livestreams—content that aligns closely with the format dominating platforms like TikTok and Instagram Reels. Creators can stream vertically directly on YouTube or through third-party software, but viewers can only send Gifts via the mobile app.
This move represents a shift in how YouTube is prioritizing vertical content. While its existing monetization tools, like Super Stickers, allow creators to earn revenue during livestreams, YouTube believes Gifts offer a more engaging and visually impactful way for fans to show their support. Once Gifts are enabled, creators will no longer have access to Super Stickers, signaling YouTube’s commitment to streamlining and elevating the gifting experience.
Following TikTok’s Footsteps
The introduction of Gifts aligns with the success seen by TikTok, where creators have turned live gifting into a lucrative venture. On TikTok, some teens have reportedly earned up to $7,000 per month by debating political topics like Donald Trump or Kamala Harris during live sessions. Similarly, NPC streamers—those mimicking pre-programmed game characters—have raked in thousands of dollars per day through live gifting.
YouTube is clearly looking to replicate and expand upon this success within its own platform. By offering a similar gifting model, it hopes to attract creators who may have previously overlooked YouTube’s vertical livestreaming features.
What’s Next for Creators?
The new Gifts feature is rolling out to eligible creators in the U.S. over the next few weeks. For creators looking to boost their income, this feature could be a game-changer. The early rollout also presents a window of opportunity for creators to take advantage of the promotional bonus, potentially doubling their earnings during the initial three months.
This shift underscores YouTube’s continued push into vertical video and livestreaming, as it seeks to bridge the gap between long-form content and the quick, interactive experiences favored by younger audiences. As the competition heats up, one thing is clear: vertical livestreaming is becoming an essential frontier in the creator economy.
With the introduction of Gifts, YouTube is sending a clear message—it’s ready to invest in tools that empower creators while providing audiences with fresh, engaging ways to support their favorites. Whether it will succeed in challenging TikTok’s dominance in the space remains to be seen, but for creators and fans alike, the future of vertical livestreaming just got a lot more exciting.
