The Snapchat messaging app introduces a new way for content creators to earn money. A unique feature is currently in a beta testing phase. Snapchat ads that appear within the Stories of a small group of US-based creators are being tested. Then, a broader roll-out will happen in the coming months.
How will Snapchat ads work?
As reported in The Verge, Snapchat will share the profit with the creators for mid-roll advertisements in Snap Star Stories. Revenue share shall be based on a formula that considers posting frequency and engagement metrics. The company says that the feature is only available to Snap Stars. These are the creators with large followings and verified on Snapchat, as shown by a gold star.
Snapchat has added many ways for creators to monetize their membership on the app. Users already see ads between friends’ Stories and on the Discover section. But this is the first time verified users will get a share of the ad revenue on Stories.
The new feature came after the company announced that users were moving towards Tiktok-like content over Stories. Earlier this month, Snap boss Evan Spiegel told investors that creators are spending less time posting and viewing stories. Users engage more in watching content on Spotlight, Snapchat’s Tiktok counterpart.
Snapchat continuously attracts users to create more vertical video content for Spotlight. Given that, the company said it would pay out $1 million per day through the end of 2020. Snapchat announced it pays millions of dollars to users creating top Spotlight videos.
Last year, Snapchat launched Spotlight Challenges. It provides cash prizes for users creating the best videos using specific sounds or topics. In addition, it announced paying more than $250 million to creators in 2021.
What is Snapchat Spotlight?
Both Snapchat and Facebook agreed that the future of social media looks like TikTok. That’s why Snap created Spotlight- TikTok’s rival.
“People have a lot of options for how they want to spend their time, and apps like TikTok are growing quickly.” – Evan Spiegel, Snap, Inc. CEO
In his message to investors for its quarterly earnings report earlier this month, Spiegel said Snapchat users are increasingly interested in watching videos on Spotlight and its Discover section for premium shows.
Spiegel added that this is a continuation of the trend during the pandemic, and daily story sharing and viewing have not returned to the pre-pandemic levels. He also said that the company focuses on innovating content offerings to serve the users better today.
Snapchat has also added new features and bitmoji reactions to enable fun interaction. There are seven options to choose from: thumbs up, thumbs down, a heart, tears of joys, and a flame. Aside from that, the app users can poll friends in snaps and stories. They can reply to your question with an emoji, and you will be able to see how your friends voted.
Going back to Snapchat ads, a spokesperson did not comment whether creators and influencers would have control over the ads. Even how much money they are expected to make from the profit-sharing was not announced yet.
The company promised to commit to meaningfully rewarding the community for their creativity. They will also continuously support creators to grow their followings and build their business via Snapchat.
The update also opens a new opportunity for advertisers to tap Snapchat with a new, high-value placement.
After the beta testing with a group of US Snap stars, Snapchat ads are expected to roll out later this year.
