Snapchat is introducing a new way for content creators on the app to monetize their work. The platform is testing in-stream ads that appear in the public stories of a small group of content creators in the United States, with plans for a wider rollout in the coming months. When in-stream ads are placed in the stories of Snap Stars, Snapchat shares the revenue with content creators. The company states that the revenue share is based on a formula that takes into account metrics such as posting frequency and engagement.
This feature is available to Snap Stars, who are verified content creators or public figures with a large following, indicated by a gold star. The company stated that stories reduce barriers to content creation and sharing. They believe that placing ads within the public stories of Snap Stars provides an easier pathway to financial success.
In recent years, Snapchat has added various ways for content creators to monetize their presence on the app. Users on the platform see ads between friends' stories and in the Discover section. However, this is the first time that content creators will receive a portion of the advertising revenue from stories.
The introduction of in-stream ads for certain stories follows a period where Snapchat experienced a decline in the popularity of stories. It comes shortly after Snapchat indicated that users are leaning more towards TikTok-like content in stories.
Evan Spiegel, the CEO of Snap, informed investors earlier this month that users are spending less time posting and viewing stories, and instead are watching content through Spotlight. The company announced that it was paying one million dollars daily until the end of 2020, attempting to entice users to create more video content for the Spotlight feature. It now claims to be paying millions of dollars monthly to content creators who make featured videos. Last year, the company announced Spotlight challenges — cash prizes for users who create the best videos using specific lenses, sounds, or themes. The company reported that it paid out more than 250 million dollars to content creators in 2021.
