Snapchat is not being too generous with payments for creators using Spotlight.
For those that may not be aware, Spotlight is the company’s clone version of TikTok and it’s where creators adore making content and putting it for views across audiences.
The company has announced that such creators would get millions per year as confirmed by Tech Crunch recently but it was through sources at Business Insider that verified the news first.
Snapchat has really altered the way creators are getting paid through its initiative for Spotlight called the reward fund. And unbelievingly, this is the second time that they’ve made such a mega slash, bringing down figures to $1 million in 2020.
The amount is definitely being lowered here but the company is making more payments to creators in different markets. Also, it’s important to note how the company is not going to alter the minimal cost per Spotlight for creators. This would still stand at the value of $250. In the past, Snapchat was seen making payments comprising $250 million to more than 12,000 creators.
There were also some indications of how Snapchat’s creators make profits like Creator Marketplace, accelerator initiatives, and Sound Creator funds. Then there are programs like Spotlight Challenges and gifts made through in-app means.
In February of 2022, we saw the app test the revenue-sharing initiative across various ads on its Stories that were reserved for Snap Stars.
Snapchat is providing rewards to more than $100,000 people seen in various spotlight challenges for the seasonal event of Halloween too.
So as you can see, the decision taken to further decrease spending on Spotlight is just another means to bring down expenses and boost profits.
The decision to decrease fund spending for the likes of Spotlight was made as a way to bring up profits and reduce revenue. Meanwhile, during the earlier part of this year, CEO Evan Spiegel mentioned how Snapchat was busy testing advertisements through the platform. Then we saw in August that the platform really got its workforce down by 20%.
During the unveiling of the Q3 results, it was observed how it really missed out on forecasts made in regard to revenue expectations. While the firm did well, the earnings were around $1.13 billion, and then there was also a rise of nearly 6% in this quarter. But what was really shocking was how the app’s net loss increased to $360 million.
Meanwhile, on the positive side of things, the company mentioned to Spotlight how it performed so well in this quarter and even assisted in increasing the time spent on watching various types of content.
Read next: Metaverse Heavily Criticized By Snap CEO Who Says The Idea Lacks Practicality In Today’s World
For those that may not be aware, Spotlight is the company’s clone version of TikTok and it’s where creators adore making content and putting it for views across audiences.
The company has announced that such creators would get millions per year as confirmed by Tech Crunch recently but it was through sources at Business Insider that verified the news first.
Snapchat has really altered the way creators are getting paid through its initiative for Spotlight called the reward fund. And unbelievingly, this is the second time that they’ve made such a mega slash, bringing down figures to $1 million in 2020.
The amount is definitely being lowered here but the company is making more payments to creators in different markets. Also, it’s important to note how the company is not going to alter the minimal cost per Spotlight for creators. This would still stand at the value of $250. In the past, Snapchat was seen making payments comprising $250 million to more than 12,000 creators.
There were also some indications of how Snapchat’s creators make profits like Creator Marketplace, accelerator initiatives, and Sound Creator funds. Then there are programs like Spotlight Challenges and gifts made through in-app means.
In February of 2022, we saw the app test the revenue-sharing initiative across various ads on its Stories that were reserved for Snap Stars.
Snapchat is providing rewards to more than $100,000 people seen in various spotlight challenges for the seasonal event of Halloween too.
So as you can see, the decision taken to further decrease spending on Spotlight is just another means to bring down expenses and boost profits.
The decision to decrease fund spending for the likes of Spotlight was made as a way to bring up profits and reduce revenue. Meanwhile, during the earlier part of this year, CEO Evan Spiegel mentioned how Snapchat was busy testing advertisements through the platform. Then we saw in August that the platform really got its workforce down by 20%.
During the unveiling of the Q3 results, it was observed how it really missed out on forecasts made in regard to revenue expectations. While the firm did well, the earnings were around $1.13 billion, and then there was also a rise of nearly 6% in this quarter. But what was really shocking was how the app’s net loss increased to $360 million.
Meanwhile, on the positive side of things, the company mentioned to Spotlight how it performed so well in this quarter and even assisted in increasing the time spent on watching various types of content.
Read next: Metaverse Heavily Criticized By Snap CEO Who Says The Idea Lacks Practicality In Today’s World
