Struggling Snapchat says it is experimenting with revenue sharing plans that will make it a more appealing platform for creators.
Digiday reports that CEO Evan Spiegel recently attended Snap’s first ever Creators Summit and met with 13 creators in an effort to understand how they could be better supported.
One of these was Delmondo strategist Mike Metzler, who said: “I can say emphatically that creators would love seeing ad revenue split. The unfortunate truth is that brand deals have been few and far between for Snapchatters of my size compared to, say, 2016, when they were coming in once a week.
“I’m at a point where if I am not able to monetize my content, I have to put my effort elsewhere.”
However, the company was also criticised for being slow on the uptake regarding its plans, with Snap’s head of original content Sean Mills countering: “It’s easy to forget what a new and young company we are. We’re kind of just getting started here.”
All of this comes at a time when the news is not getting any better for Snap. As recently as last week analysts slashed their expectations for the company, sending its shares into freefall. In March 2017 Snap was trading at $27.09. Today it trades at $13.10, although that is up on its May 2018 low of $10.58.
Around the same time an analyst at Needham & Co spoke of a “dramatic slowdown” in the amount brands were spending on the company’s products.
In contrast, Facebook-owned Snapchat rival Instagram is in the ascendancy, having now hit a market worth of $1 billion. It recently passed the 1bn user milestone too.