Snapchat adds some tools to monetize creators in an effort to intensify engagement efforts and continue to grow TikTok’s popularity among younger audiences.
First of all, as it seems to align its payment program for its Spotlight feed similar to TikTok, Snapchat is launching new ‘Spotlight Challenges’, which will provide cash prizes to users who post the best videos on a particular topic.
As you can see here, the new challenges in the spotlight will highlight the specifics of each trend, as well as the awards offered for the best performances in each category.
As Snapchat explained:
“Spotlight challenges will be available on the trend page, and will be accessed via the trend symbol in the upper right corner of Spotlight within Snapchat. Select the challenge you want to participate in to see a page of that specific challenge that will contain a description of the challenge and entries submitted by the community. Touch “Challenge Details” for additional contest details, such as available prizes and submission deadlines. Tap the camera icon to open the Snapchat camera. Create and submit! ”
It’s a fairly simple process and could provide Snapchat with a means to drive growing content trends, which is one of the key ways users engage on TikTok. It could also provide a new revenue opportunity for the app, with brands that could eventually sponsor certain trends in the spotlight relative to their promotions.
To be clear, Snapchat has not yet said that there are sponsored trends on the maps, but it seems to be a logical improvement for this option.
“The total prize amount for individual Spotlight challenges will typically range from $ 1,000 to $ 25,000, although we may occasionally make a larger amount available for a particular Challenge, and the minimum prize a Snapchatter can win on a Spotlight challenge is $ 250. ”
An alternative prize pool could also be a way for Snapchat to change its current Spotlight payment program, which has been effective in some respects but has also proven problematic.
During the launch, u November last year, Snapchat has announced it will be paying out a million dollars a day, to be shared among the most successful Spotlight clips, as a means to boost engagement and launch offers. What worked – by the end of the first quarter, The spotlight jumped on 125 million monthly active users (from Snapchat’s 280 million active activities), but by that point Snap had already paid $ 90 million in creator payments, with more to come, and the price-benefit ratio was starting to look a bit daunting.
In the end, Snap might have been better off paying 125,000 people for $ 1,000 just to check in and engage in Spotlight content every day throughout the year, because it could end up both cheaper and more efficient.
Looking back, as costs continue to rise, Snap announced an update in June The payment process in the spotlight,, moving from daily payments of $ 1 million for spotlights to the more obscure ‘millions a month’.
It is caused various problems for Snape creators, who has already expressed concern about late payments and other program-related issues. And given that some were earning tens of thousands a month from Spotlight, sometimes more, which made many feel confused, they eventually found some of Snap’s creator partnerships, contrary to the projected impact of the process.
Perhaps then this will be a more logical and sustainable way of funding Spotlight clips, which could also attract a wider range of creators to the program, as opposed to top creators taking over the lion’s share of funding.
New funds will come from the current ‘million per month‘in total Spotlight payments, so it won’t increase Snap’s costs, but it could eventually offer a number of new Spotlight options.
It’s an interesting experiment in boosting potential engagement with this option – though again, it probably won’t help reassure Spotlight creators who have already seen their amounts decline over time.
Snapchat says so Spotlight challenges will appear on Snapchatters on Android and iOS in the US next month, and more markets are coming in the coming months.
In addition, Snapchat is expanding its virtual gift-giving capability to all ‘Snap Stars’ around the world.
Snapchat was the first to announce its virtual donation process in May, with proven Snap creators who can accept digital gifts, like the animation above, which users can purchase via platform tokens.
“When you send a gift to a creator, your response to the story takes precedence in their feed! You will be able to see when the Creator opened your gift, and they can respond 1: 1 or share your response to their Public Story! ”
Most of the purchase amount of these digital stickers goes back to the creator, providing Snap stars with another way to generate direct revenue from their efforts and establish a connection with their audience in the app.
The wider range of Snap Stars will now be eligible for the program, although the specific conditions for acquiring a verified creator account, and therefore the ability to receive gifts in the app, are not 100% clear.
Currently, the qualifiers for a Snap Creator account are as follows:
- 100 subscribers
- The profile is active for one week
- At least 1 two-way friend
But that’s just the starting point – to be eligible to receive gifts in the app, you must have a ‘Snap Star’ profile, which is the next level of the creator’s account.
According to Snap:
As with most social verification programs, all of these measures are quite opaque and there are no prescribed qualifiers for each element. But for those who qualify, it will provide another monetization option, which could help Snape publish and hire its leading stars more often.
Snap also updates its own Marketplace Marketplace influencer / brand linking platform, with companies that can now connect with Snap Stars in the app “to boost their marketing presence on the platform”.
Originally launched in May, Snap’s Marketplace Marketplace initially only facilitated the connection with Lens makers, lens developers and lens partners. But now, Snapchat is extending this to proven creators as well, providing another opportunity for brands to connect with influencers who have already built an in-app audience for their promotional campaigns.
Going hand in hand with this, Snap has also added a new “sponsored by” label, which will allow Snap Stars to label the brand in its sponsored content.
And finally, Snapchat is also launching a new one Creator Hub which will provide a range of Snapchat tips and tools to help you improve your platform and exit knowledge.
The platform will provide overviews of all aspects of the platform, which will benefit both creators and retailers.
These are some interesting updates from Snap, which are in line with the growing pressure of the “creator economy”, because each application works to provide greater potential for monetization, because it works to retain the best, more attractive talents.
Because in the end, talent wins. TikTok probably succeeds best in democratizing its access to content, through hashtag trends and remixes, but for YouTube, Facebook and Twitter, they are big stars and return users to their content on a daily basis.
Finally, the hope of any app other than TikTok will be that TikTok will not be able to build a fair monetization framework, which will instead bring its stars to other apps (which happened to Vine). But over time, as TikTok continues to specifically improve its e-commerce tools, this seems less and less likely. Which then puts every app in the race to maximize creator funding, and Snapchat also obviously wants to increase its potential with new tools and experiments like these.
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