Snapchat has rolled out a new monetization option for
creators in the form of ‘mid-roll ads for Snap Star Stories.’ This will help
generate revenue for creators by enabling them to switch on ads within their
Stories.
There will also be some revenue cut, which Snapchat has not
specified. Moreover, the revenue share from the ads would be based on Snapchat’s
proprietary payment formula, which includes factors like posting frequency and
audience engagement. Snapchat uses the same payment formula for its Spotlight
funding as well.
The revenue generated from the ads within Stories would likely depend on each creator’s performance mostly, based on view counts. However, Snapchat seems to be considering more than just that in relation to its new tool.
In addition to providing benefit to creators, the ads will
also help advertisers avail the opportunity to expand their audience reach.
Moreover, as more creators will make use of ads within their
Stories, it will boost Snapchat’s overall engagement. Social apps like Snapchat
have lately been focusing more on providing assistance to creators, which in return
increases app engagement, in order to become better competitors in the social
media world.
Other monetization tools that Snapchat has released in the
recent past include Spotlight funding, the AR creator fund, Creator Gifting and
Creator Marketplace.
The Star Stories Ads feature is available to select US-based
creators for now.
