Snap's Bid to Regain Momentum: Revenue-Sharing Incentives Attract Big Creators, Setting the Stage for Comeback

Snap Inc SNAP has introduced a revenue-sharing program to entice creators back to its platform, allowing them to earn a portion of the ad revenue generated by their content.

The program, known as Snap Star, has opened to all eligible users and has attracted several thousand creators, the Wall Street Journal reports.

By offering a cut of ad revenue, Snap aims to reverse its declining sales and regain user engagement, impacted by factors like Apple Inc's AAPL privacy policy changes.

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Creators in the program, including big names like David Dobrik, have reported increased activity on Snapchat and higher earnings from posting on the platform.

The move by Snap reflects the ongoing competition among social media platforms to attract and retain creators who play a crucial role in driving user engagement.

Meta Platforms Inc META Instagram, Facebook, ByteDance Ltd TikTok, and Alphabet Inc GOOG GOOG YouTube have also implemented various programs and funds to support and incentivize creators.

Snap's financial performance will likely be a deciding factor as the company reports its earnings this month following the rollout of the Snap Star program to all creators.

Analysts have taken note of Snap's efforts to lure creators back to its platform and see early signs of traction in the Snap Star program.

They view Snap's focus on creators as a smart move to leverage their loyal followings and increase user engagement.

While analysts anticipate improving creator activity on the platform, they remain cautious about Snap's overall financial recovery in the second quarter.

Price Action: SNAP shares traded higher by 0.39% at $11.73 on the last check Monday.

Photo by Souvik Banerjee from Pixabay

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.