Snapchat adds ‘challenges’ with cash prizes to competitor TikTok

Snapchat adds another way for creators to make money. The app is launching a feature called Spotlight Challenges, which will reward a handful of creators each week for making videos using specific lenses, performing certain activities, or playing a chosen sound in the app’s TikTok competitor, Spotlight.

Approximately three to five creators will receive money for each challenge, with winners chosen from the most viewed eligible videos. Snap says the minimum payout will be $ 250, but prices “will generally range from $ 1,000 to $ 25,000.” There will be several challenges each week.

The challenges offer a new way for Snap to get people to create videos for Spotlight – and in a way that gives the business a lot of control. This can stimulate certain trends or try to encourage different types of content than what people usually do. It might help as it tries to differentiate Spotlight from TikTok and give people a reason to keep coming back for something new.

It is also a potential income opportunity. Challenges will not be sponsored at launch, but Snap “may” offer challenges in the future, Snap spokesperson said The edge.

The challenges are now unfolding in the United States, with other markets to follow. The spokesperson said the payments would be in addition to the millions of dollars a month the company pays to creators around the world who make the best Spotlight videos. Snap was paying $ 1 million per day at launch, but then reduced the amount to a less specific “million per month.”

The payments seem to have worked, at least a few months ago. In July, Snap said daily Spotlight usage increased 49% quarter over quarter. Time spent per day has also increased by over 60% in the United States – although in both cases Snap has not shared the actual numbers.

In addition to the challenges, Snap adds a few other ways for creators to get paid. The giveaways are now rolling out worldwide, allowing viewers to tip creators with digital tokens, from which they will receive reduced revenue. Snap is also expanding its Creator Marketplace to include video creators, allowing businesses to connect with them for referrals. However, access to these features is limited: only approved “Snap Stars” are eligible for giveaways and the Marketplace, and creators must be invited by Snap to participate in this program.

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