Snap simplifies creator payments as it looks to seize on spending

Article by Daniel Konstantinovic  | Dec 16, 2024
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Snap simplifies creator payments as it looks to seize on spending
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Influencer Marketing
Social Media Users
Social Media Usage
United States

The news: Snap has introduced a unified monetization program for creators, allowing them to receive equal payment for content produced in Stories and its Spotlight sections, it announced Monday.

  • Beginning in February 2025, creators who meet certain criteria—such as 50,000 followers, 25 monthly posts on saved Spotlight or Stories, and 12,000 hours of viewing time in the last month—will be eligible for the program.

Snap also revealed a number of creator economy metrics: Spotlight viewership is up 25% YoY, and the number of creators on Snapchat has tripled through 2024.

Attracting creators: With a TikTok ban looming and US influencer marketing spending set to grow 16% this year to $8.14 billion, Snap is attempting to position itself to seize creators looking for TikTok alternatives and marketers eager to partner with popular figures.

  • Snap’s requirements for monetization are steep, meaning they will reward creators who invest heavily in producing on the platform. While it’s sure to attract its share of dedicated posters, most creators pursue a cross-platform strategy to ensure a diverse stream of revenues.
  • The move follows similar changes from competing platforms to simplify creator monetization processes in recent years. Platforms like TikTok and YouTube have generally moved away from opaque creator funds: YouTube now uses a revenue-sharing model for Shorts, and TikTok has a creator rewards program for content over 60 seconds.

Our take: While Snap has seen success with subscription service Snapchat+ and enjoyed a strong Q3, it has historically struggled to become a major destination for creators due to its primary function as a messaging platform.

  • However, with TikTok users and creators soon to scatter, the company must position itself to capture those adrift looking for a new platform. Marketers must similarly prepare to diversify, and Snap could see strong Q1 2025 ad spending as budgets from TikTok get shuffled around social media platforms.