Snapchat announces a new feature to share profits with content creators

Specialized media said that the Snapchat application will provide a new way for creators and content makers on the application to earn money, as the platform is testing in-run ads that appear in the stories of a small group of content creators in the United States, with a large-scale rollout in the coming months.

According to The Verge, when an ad is placed in a Snap Star's story, Snapchat will share the profits with the creators. The company says the revenue share is based on a formula that takes into account metrics such as diffusion frequency and engagement. The feature is only available to Snap Stars, who are content creators or public figures with a large, verified following on Snapchat, which is indicated by a gold star.

It is known that Snapchat users are already seeing ads among 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.

In an effort to entice users to create more vertical video content for Snapchat, the company announced that it will pay $1 million per day through the end of 2020. Now, Snapchat says it is paying millions of dollars per month to creators who make premium videos. Last year, Snapchat also announced Spotlight Challenges - cash prizes for users who create the best videos with specific lenses, sounds, or themes. The company says it paid more than $250 million to creators in 2021.