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YouTube has made an update to its automated content classification system, which will result in 30% fewer videos on the platform being classified as not eligible for monetization through ads. YouTube’s automated system uses machine learning to decide if a video is eligible for monetization, and the update will decrease the chances of a video being wrongly classified as not eligible for monetization.

The update will apply retroactively to creators’ videos. Creators may see some of their videos that were previously demonetized become eligible for monetization, and vice versa. YouTube’s announcement comes after the company announced its content classification system in August.

The update may help appease certain creators who feel their videos are wrongly demonetized. Many creators have become unhappy with the amount of YouTube ad revenue they receive as the platform adopts stricter content guidelines in response to advertiser brand safety concerns. YouTube’s update may address some of these creators’ concerns in the near term. In the long term, the amount of creators feeling wrongly demonetized may decrease as YouTube is continually incorporating information from human reviewers — spurred by creators who feel wrongly demonetized filing appeals — to improve the system.

YouTube looks to improve the accuracy of its content classification system to retain high-quality creators. With a fairer and more accurate classification system, top creators are likely to post more content on YouTube, as there is greater financial incentive. This is important as these videos posted by top creators can represent premium ad inventory for the company. Additionally, the update can make creators less inclined to flock to other competitor video platforms like Patreon and Twitch, which are both increasingly building out monetization capabilities to lure creators.

Meanwhile, YouTube walks a fine line in updating its content classification system.YouTube will very likely continually make changes to its algorithms to minimize the amount of content that is mischaracterized as not advertiser-friendly. Though this approach positions YouTube to strengthen its appeal to creators, it could also open the door to more brand safety issues on the platform, if content categorization criteria becomes too lax.

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