Snapchat is beta testing a new way to feature ads on its platform, by putting them into Stories. The mid-roll ads will only appear for a small number of US Snap Stars for now, before being rolled out widely later this year.
The social media platform said that with the Stories ads, the creators will receive a cut of the revenue generated. Snap also told The Verge that the share will be based on a formula that calculates account metrics such as posting frequency and engagement.
Similar to the blue tick on Twitter, Snap Stars are verified users with a significant following, marked by a gold star next to their name. The platform has already rolled out a number of ways for creators to make money, through features such as Spotlight Challenges and Gifting.
Snapchat already integrates ads in between Stories and on the Discover section, but this is the first time that the revenue is being shared with creators. The company announced in late 2020 that it would be providing a pool of US$1 million (~RM4.2 million) for the creators of the top videos each day, with more than US$250 million paid out in 2021.