Snapchat is rolling out a new tool for its application to feature popular videos, called Spotlight and is offering $1 million a day to creators of top-performing posts. To earn the money, video submitters to Spotlight don’t have to have large followers or even have public profiles. Instead, an algorithm will determine what to show Snapchat users based on how often others view their content.
The new feature will help Snapchat in a competitive market for posting entertaining videos online, dominated by Facebook, Instagram and Google’s YouTube, with China-based ByteDance Ltd.’s TikTok rising fast among younger audiences. Snap Chief Executive Officer Evan Spiegel has eschewed public metrics, such as likes and follows, that drive the market for influencers, the most-followed users on photo-sharing apps.
Social media platforms are striving to attract the makers of quality content. TikTok plans to spend more than $1 billion in the US in the next three years on video-makers. Instagram has been paying some of TikTok’s top stars to test out its TikTok copycat feature, ‘Reels’. Instagram also recently started for the first time sharing revenue on video ads with creators, as YouTube does.
Snap shares have almost tripled this year to a record $45.38 earlier this month as young people turn to Snapchat to message friends videos during the coronavirus. The app also features television shows and magazines designed for a young audience on mobile. ‘Spotlight’ will initially launch in the US, Canada, Australia, New Zealand, the UK, Ireland, Norway, Sweden, Denmark, Germany, and France.