As the competition for talented creators intensifies, Snap today introduced a series of new tools, programs and features that will enable the creators of its platform to generate revenue. These include extending a giveaways feature to creators around the world, expanding the Creator Marketplace to include Snap Stars (top creators with verified accounts), launching a handy resource called the Creator Hub, and a new way for Snapchat creators to be rewarded for making a short video for its built-in rival TikTok, known as Spotlight.
The latter, called Spotlight Challenges, will offer cash prizes for top performing Spotlight content, as spearheaded by Snap itself. This is different from funds for creators of other social apps, which pay based on metrics like views and engagement of anyone who qualifies. Instead, it’s a “chance” to make money where each individual challenge will reward an average of 3-5 Creators as winners – although sometimes that number is more or less, Snap notes. The minimum price will be $ 250. Typically, the total amount of prizes for individual challenges will range from $ 1,000 to $ 25,000, but Snap says it can sometimes offer a larger amount.
The challenges will be designed to encourage the use of specific goals, sounds, or #topics, rather than paying for any top performing content. These challenges will be featured on the Spotlight Trending page, which you access by tapping the trending icon at the top right of the Spotlight main screen in the Snapchat app. Here, users will be able to see the available challenges, read the details of the bid details and the associated price, and then tap to open the camera and create content.
The addition follows complaints from the creators of Snap who earlier this year became frustrated with the Spotlight payment delays and, later, with the dwindling amount of money they could make. Whereas previously Snap paid an incredible $ 1 million per day to launch competitor TikTok Spotlight, it shut down the program in late May saying it would cut payments to “millions” per month starting in June.
But creators who expected bigger payoffs weren’t happy with the change, and some started looking for better opportunities on other apps. Today there are plenty of options to choose from, as Facebook, Instagram, YouTube, TikTok, and Twitter all try to woo creators in their own way, including, in some cases, with direct payments in addition to revenue sharing. ads.
Snap’s new “challenge” system appears to offer a bit more transparency over payments, as creators will be able to see ahead of time what the prices may be. But on the other hand, and perhaps most importantly, it signals to creators that there is no guaranteed salary coming here – it’s a “prize”, not a paycheck. This means that creators could still produce great content and not “make” any money.
However, Snap tells TechCrunch that it isn’t replacing creator payments with prizes. The new feature will be in addition to the millions it distributes per month to top Spotlight creators.
The new feature will roll out in the US next month on iOS and Android before expanding to other markets.
Other additions today include a Snapchat Creator Hub that offers information on getting started with Spotlight and other tips and extending the Gifting feature to Snap Stars around the world (see above). This feature was announced in May and allows fans to support creators using Snap Tokens through Story Replies. Snap Stars receive a share of the revenue from the Gifts they receive, as a sort of virtual tip.
Snap is also expanding the Creator Marketplace, which previously worked to connect Lens creators, developers and partners with companies who wanted to serve AR ads with their support.
Now, the marketplace will serve another purpose as well – it will connect companies with Snap Stars around the world for branded offerings. This is how the designer markets on other top social platforms, like Facebook, Instagram, TikTok, and YouTube, already work, so it’s a bit of a catch-up from Snap.
In connection with this decision, Snap is also introducing a “Sponsored by” tag for companies with public profiles so that Snap Stars can tag brands in their sponsored content for more transparency. In this case, 100% of transactions will go directly to the creators, says Snap.
Despite changes to Snap’s previous monetization efforts, the company says Spotlight content production is booming. In its second quarter earnings call, Snap said Spotlight submissions more than tripled, daily time spent per user in the US increased by more than 60% from the previous quarter, and daily active users had increased. increased by 49%.
To date, Snap has paid more than $ 130 million to creators, he says. And it has seen “all-time highs” in terms of the number of creators posting to Spotlight since the June 1 redesign, the company noted.