Snapchat will put ads within stories and share the money with creators

Snapchat is introducing a new way for app creators to earn money. The platform is currently testing mid-roll ads in the Stories of a small group of US creators, with a larger rollout planned in the coming months.

When an ad appears in a Snap Star’s Story, Snapchat will split the revenue with the creators. According to the company, the revenue share is determined by a formula that takes into account metrics such as posting frequency and engagement. The feature is only available to Snap Stars, who are creators or public figures with large followings who have been verified on Snapchat (a gold star indicates this).

Snapchat has recently added new ways for creators to monetize their presence on the app. Snapchat users are already seeing ads in between their friends’ Stories and in the Discover section, but this is the first time creators will receive a cut of ad revenue on Stories.

This comes shortly after Snapchat indicated that users preferred TikTok-style content over Stories. Snap CEO Evan Spiegel recently told investors that users are spending less time posting and viewing stories and more time watching content on Spotlight, Snapchat’s TikTok equivalent.

Snapchat introduced Spotlight Challenges last year, which awards cash prizes to users who create the best videos using specific lenses, sounds, or topics. According to the company, it paid out more than $250 million to creators in 2021.

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