Popular social media app, Snapchat is now working to solidify itself as a platform where creators can earn. Snapchat has announced its plans to introduce revenue sharing mid-roll ads during Snapchat creators’ stories. A Snapchat spokesperson stated that this feature is already in very early beta for a small set of U.S.-based creators, but the platform intends to launch more broadly to Snap Stars in the coming months.
Snapchat to Introduce Revenue Sharing Mid-Roll Ads During Creators’ Stories
The revenue sharing mid-roll ads will be during creators’ stories, and the creator will earn a share of the ad revenue. That payout is specified by a payment formula, which considers factors such as posting frequency and audience engagement. Snapchat refused to comment further on the nature of these payouts. Through its TikTok clone Spotlight alone, Snapchat paid creators $250 million last year.
Creators can also benefit from Spotlight through in-app gifting and Snap’s creator marketplace, which lets brands more easily collaborate with AR developers and influencers. This test of revenue sharing mid-roll ads follows ongoing discussion among creators about the differences between creator fund payouts and revenue sharing models.
TikTok’s Parent Company ByteDance Earns $58 Billion in a Year
Longtime YouTuber and Vidcon co-founder Hank Green suggested last month that the size of TikTok’s creator fund has not increased at the same rate as its user base, meaning that over time, TikTok creators are earning less for their contributions to the platform — plus, when TikTok’s parent company ByteDance earns $58 billion in a year, the size of a $200 million creator fund feels paltry. Meanwhile, YouTube paid out $10 billion from ad revenue sharing over the last three years. But at the same time, short-form platforms such as TikTok and Snapchat Spotlight would feel useless if they had as many ads as YouTube.