Until the end of December, Snap Inc. (SNAP) is able to spend around $1 million every day to pay prizes to the writers of the best videos shared on Snapchat. The social network, therefore, aims to compete for video content and a youth audience with TikTok.
Snapchat remains the most popular site among American teenagers, according to a new survey by Piper Sandler, with 34 percent of respondents preferring this social network. The TikTok video content service, however, is becoming more prevalent: 29% of teens call it their favorite social network. For Snapchat, this means that rivalry is growing for its most significant audience. Therefore, Snapchat is now resorting to the financial reward strategy in the fight for generation Z.
The company confirmed that it is prepared to spend $1 million a day to pay incentives on the spotlight user content site owned by the writers of the best videos. Every video posted on the website will receive views that will be turned into cash. The video must “earn” $250 during the day in order to get a payout from Snap. The author may earn a fee if the sum is greater than the amount specified. The author gets nothing if the target of $250 is not met within the specified time. Snap allows subscribers to generate entertaining content that can go viral and attract millions of views in this way. Snapchat could indeed become a serious competition for TikTok, if the plan succeeds. Particularly, because of several famous Tiktok writers already have accounts on Snapchat with millions of followers. The company’s offer can also persuade them to produce videos on this website.
Snapchat, the social network, continues to expand. In the past year the number of daily active users rose by 18 percent year-on-year to nearly 250 million. A 28 percent rise in average sales per user.
Snap Inc. (SNAP) stock was worth $49.15 at ring of the bell on Wednesday, while it has gained about 200% since start of the year.