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| Snapchat puts ads in Stories |
Snapchat provides developers with a new way to monetize the app. The platform is testing on-the-fly ads that appear in public stories for a small group of content creators in the US and will run larger ads in the coming months.
When you display ads in Snap Stars Stories, Snapchat shares the proceeds with the creators. The company said the revenue share is based on a formula that takes into account metrics such as frequency of posting and engagement.
This feature is available to Snap Stars, who are content creators or public figures who have a large number of followers and are verified on the platform, represented by gold stars.
"Stories lower the barriers to content creation and engagement," the company said. We believe placing ads on public Snap Stars Stories leads to financial success.
In recent years, Snapchat has added multiple ways for content creators to monetize their presence through the app.
Users of the platform can see ads in friends' stories and in the Discover section. But this is the first time that content creators have received a percentage of ad revenue in Stories.
Snapchat shares money with creators
The introduction of ads to certain Stories comes after Snap's Stories lost popularity for a while. It also comes shortly after Snapchat said users tend to embrace TikTok-like content via Stories.
Snap CEO Evan Spiegel told investors earlier this month that users are spending less time posting and viewing Stories and viewing content through Spotlight.
The company announced a daily payment of $1 million through the end of 2020. This is to encourage users to create more Spotlight video content.
The company now claims to pay content creators millions of dollars per month to produce premium videos. Last year the company announced Spotlight Challenges - cash prizes for users who create the best videos with a specific shot, sound or theme. The company said it paid content creators more than $250 million in 2021.