Snapchat has recently started testing a new monetization option for its creators. As per company claims, the revenue generated by the mid-roll ads feature which, for now, is in its testing phase, will be shared with the platform’s creators which are more commonly called Snap Stars.
The feature will be made available for Snap Stars (creators or public figures) who bring some of the best and most entertaining content to Snapchat, while the factors used to determine eligibility include account engagement with an emphasis on public Stories, authenticity, notability, cultural relevance and content quality.
For now, a small group of Snap Stars in the US are beta-testing the new mid-roll ads in public Stories, who as a result will also receive a share of revenue earned from those ads, based on Snap’s payment formula, which incorporates factors such as posting frequency and audience engagement.
The company said it is hoping for a “flywheel effect” from this newly introduced ad feature, aimed at rewarding eligible Snap Stars for their content and prompting them to create even more engaging content, which benefits Snapchat’s predominant Generation Z and millennial community.
Previously, the platform introduced its take on TikTok-like short-form videos, called Snap Spotlights. So far the company has invested significantly in the new format, including the commitment to spend $1 million per day to fund creators supporting the platform. Snap’s decision to share ad revenue generated by Stories shows the company is serious about ensuring its continued growth and maintaining a loyal creator base.
