Following the footsteps of other social media platforms, Snapchat is striving to establish itself as a platform for creators to earn money. The company stated today that it aims to offer mid-roll advertisements for Snap Stars during Snapchat stories just like Instagram stories.
According to a Snapchat spokesperson, this new feature is already in early beta for a handful of US-based creators, but the platform intends to extend it to all Snap Stars in the coming months. These will display as mid-roll ads within their stories, and the creator will receive a portion of the revenue generated by the ads. This payout is calculated using a payment algorithm that takes into account characteristics such as posting frequency and audience engagement. Snapchat declined to provide any further information regarding the nature of these payouts.
Snapchat to Roll Out Instagram like Mid-Roll Ads Within Stories
Furthermore, Snapchat said that it is expecting a “flywheel effect” from this newly introduced advertisement feature, aimed at rewarding eligible Snap Stars for their impressive content and prompting them to make even more engaging content, which aids Snapchat’s predominant Generation Z and millennial community.
Snapchat paid creators $250 million last year through its TikTok clone Spotlight. The company has already made considerable investments in the new format, including a pledge to spend $1 million each day on creators who support the platform. Snap’s move to share ad revenue earned by Stories demonstrates the company’s commitment to long-term growth and the retention of a dedicated creative base. Additionally, creators may earn from Spotlight via in-app gifting and Snap’s creator marketplace, which enables companies to interact more easily with augmented reality developers and influencers.