With the upcoming update, Snapchat will place ads in stories and share the money with the creators. The feature is currently in beta testing.
Snapchat is gearing up to introduce a new way for creators on the app to make money. The platform controls mid-roll ads that appear on the topics of a small group of US creators and plans to make it more widely available in the coming months, paving the way for monetization. Here are the details!
Snapchat to Share Ad Revenues with Users
When an ad is placed on a Snap creator’s Story, Snapchat will share the revenue with the creators. The company says revenue sharing is based on a format that takes into account metrics like post frequency and engagement. This feature will only be available to Snap Stars, who are creators or public figures who have been verified on Snapchat and have a large following with a gold star.
In recent years, Snapchat has added several ways for creators to monetize their in-app presence. Snapchat users were seeing ads within their friends’ Stories and in the Discover section, but this is the first time creators will receive a share of the ad revenue from Stories.
This news comes shortly after Snapchat announced that users are moving towards TikTok-like content via Stories. Snap CEO Evan Spiegel revealed to investors earlier this month that users are spending less time posting and viewing stories, focusing instead on Spotlight, Snapchat’s TikTok equivalent.
To entice users to create more vertical videos for Spotlight, the company announced that it will pay $1 million a day by the end of 2020. Now Snapchat says it pays creators millions of dollars a month to make the best Spotlight videos. Last year, Snapchat announced Spotlight Challenges, which are cash prizes for users who create the best videos using specific lenses, sounds, or subjects.