Snapchat will place ads in stories and share the money with creators


Snapchat introduces a new way for creators to make money in the app. The platform is testing mid-roll ads appearing in the stories of a small group of American creators, with a wider rollout in the coming months.

When an ad is placed in a Snap Star’s Story, Snapchat shares the proceeds with the creators. The company says its revenue share is based on a formula that takes into account metrics such as frequency of posts and engagement. The feature is only available to Snap Stars, who are creators or public figures with a large number of followers who have been verified on Snapchat, denoted by a gold star.

In recent years, Snapchat has added several ways for creators to monetize their presence on the app. Snapchat users are already seeing ads between Friends’ Stories and the Discover section, but this is the first time creators will get a share of the ad revenue on Stories.

This comes shortly after Snapchat indicated that users were moving towards TikTok-esque content on Stories. Snap CEO Evan Spiegel told investors earlier this month that users are spending less time posting and viewing stories and instead watching content on Spotlight, Snapchat’s TikTok equivalent.

In an effort to entice users to create more vertical video content for Spotlight, the company announced it would be paying out $1 million per day through the end of 2020. Now Snapchat says it pays millions of dollars a month to creators who make the best Spotlight videos. Last year, Snapchat announced Spotlight Challenges: cash prizes for users who create top videos using specific lenses, sounds, or topics. The company says it will have paid out more than $250 million to creators by 2021.

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