As competition intensifies for creative talent, Snapchat has introduced a series of new tools, programs, and features that enable content creators to generate revenue. This includes expanding the gifting feature for creators worldwide, broadening the content creator marketplace to include major verified creators, and launching a resource called Creator Hub along with a new way to reward creators for making short videos for the Spotlight feature.
The platform adds a new way for creators to earn money by launching a feature called Spotlight Challenges, which rewards a group of creators each week for creating videos using specific lenses, engaging in particular activities, or using selected audio within the Spotlight app. Approximately 3 to 5 creators receive cash for each challenge, with winners chosen from the most viewed eligible videos. Payments are divided among winners from prize pools that typically range from $1,000 to $25,000, with a minimum payout of $250. Multiple challenges will take place each week.
These challenges provide a new method for the platform to incentivize users to create videos for Spotlight. They could enhance certain trends or encourage different types of content compared to what users typically produce. This may help differentiate Spotlight from TikTok and give people a reason to return and discover something new. Moreover, the challenges represent a potential revenue-generating opportunity. Challenges will not be sponsored at launch; however, the platform may introduce sponsored challenges in the future.
Snapchat has paid creators over $130 million. The challenges are currently being rolled out in the United States, with more markets to follow. A spokesperson stated that these payments are in addition to the millions of dollars the company pays globally to creators who make featured videos monthly. The platform initially paid $1 million daily when the feature launched but later reduced the amount to several million monthly.
The payments appear to have been beneficial, at least in the past few months. In July, the platform reported a 49 percent increase in daily use of Spotlight on a quarterly basis. The time spent daily has also risen by over 60 percent in the United States.
In addition to the challenges, the platform is introducing two more ways for creators to earn money. Gifting is now being rolled out worldwide, allowing viewers to give tips to creators in the form of digital tokens, from which they receive reduced earnings. The platform is also expanding its Creator Marketplace to include video creators, enabling businesses to connect with them for sponsorship.
Access to these features is specific; however, only the platform’s certified stars are eligible for gifts and the marketplace. Creators must be invited by the platform to participate in this program.
