Introduction

With over 280 million daily active users, Snapchat has become a social media giant. One of its key features, the Discover tab, offers users curated content from a wide range of sources, including publishers, influencers, and even Snapchat’s own editorial team. But how does Snapchat monetize this curated content? In this article, we will explore the various ways in which Snapchat generates revenue through its Discover tab.

1. Native Advertising

One of the primary ways Snapchat monetizes the Discover tab is through native advertising. Brands can collaborate with publishers to create sponsored content that seamlessly integrates with the overall user experience. These native ads often take the form of articles, videos, or interactive experiences, allowing brands to engage with Snapchat’s audience in an authentic way.

Snapchat also offers various ad formats within the Discover tab, such as full-screen ads, sponsored lenses, and interactive ad experiences. These ads not only grab users’ attention but also provide an immersive advertising platform for brands.

2. Publisher Partnerships

Snapchat has formed partnerships with numerous publishers, including well-known media outlets such as BuzzFeed, Vogue, and ESPN. These partnerships allow publishers to monetize their content on Snapchat’s Discover tab by sharing revenue generated from ads appearing alongside their content. This mutually beneficial arrangement helps Snapchat attract high-quality content and provides publishers with a new revenue stream.

Additionally, Snapchat invests in producing its own content through partnerships with media companies like NBCUniversal and Viacom. This exclusive content, often in the form of shows and episodic series, attracts users and advertisers alike, enabling Snapchat to generate revenue through in-stream ads and sponsorships.

3. Sponsored Lens and Filters

Another lucrative source of revenue for Snapchat is sponsored lenses and filters. Brands can create custom lenses or filters that users can apply to their photos and videos. These branded augmented reality experiences not only provide users with fun and engaging tools but also offer an innovative advertising medium for brands.

For instance, Coca-Cola partnered with Snapchat to create a sponsored lens that turned users’ selfies into animated polar bears to promote its Christmas campaign. Brands pay Snapchat for these sponsored lenses and filters, allowing the platform to generate additional revenue.

4. In-App Purchases

While primarily known for its advertising-based revenue model, Snapchat also offers in-app purchases to monetize its Discover tab. Users can unlock additional content or features by making in-app purchases. For example, a publisher may provide exclusive articles or videos that can be accessed through a subscription or one-time purchase.

This approach not only generates revenue directly but also incentivizes publishers to create engaging and premium content that users are willing to pay for.

5. Snap Originals

Snap Originals are a collection of original shows produced by Snapchat, ranging from drama and comedy to documentaries and reality TV. By monetizing these shows through advertising, Snapchat can generate revenue while also providing users with exclusive content. Advertisers can run mid-roll ads, sponsorships, or product placements within Snap Originals, capitalizing on the engaged audience these shows attract.

6. Discover Subscriptions

While still in its early stages, Snapchat has been testing a subscription-based model for certain Discover channels. Users can subscribe to their favorite publishers for a monthly fee, granting them exclusive access to premium content and experiences.

This subscription revenue model provides an alternative revenue stream for both Snapchat and publishers, reducing reliance on traditional advertising and allowing for a more direct user-publisher relationship.

7. Discover Games

Snapchat has recently ventured into the world of gaming with its Discover Games feature. Users can play a variety of mini-games within the Discover tab, offering them a new form of entertainment. These games are monetized through in-game ads, sponsored levels, and microtransactions, providing Snapchat with additional revenue opportunities.

8. Snap Map Advertising

Snapchat’s Snap Map allows users to share their location with friends and discover what’s happening around them. Brands can leverage this feature by placing sponsored pins on the map, directing users to their physical stores or special events. This location-based advertising not only generates revenue for Snapchat but also helps businesses drive foot traffic and increase brand exposure.

9. Affiliate Marketing

Snapchat can earn revenue through affiliate marketing by partnering with brands and influencers. Users may come across articles or videos in the Discover tab that recommend products or services, and if users make a purchase through those recommendations, Snapchat receives a commission. This form of revenue generation allows Snapchat to monetize its curated content while providing valuable recommendations to its users.

10. Sponsored Challenges and Trends

Snapchat frequently introduces challenges and trends that go viral among its users. Brands can seize this opportunity by sponsoring these challenges and trends, creating branded versions that users can participate in. For example, a fashion brand may sponsor a challenge where users showcase their unique style using the brand’s products.

By charging brands for these sponsored challenges and trends, Snapchat can generate revenue while fostering user engagement and creativity.

Conclusion

Snapchat’s Discover tab offers a wealth of curated content that engages millions of users every day. Through native advertising, publisher partnerships, sponsored lenses and filters, in-app purchases, Snap Originals, subscriptions, games, Snap Map advertising, affiliate marketing, and sponsored challenges, Snapchat leverages its curated content to generate substantial revenue. By providing a platform that appeals to both brands and users, Snapchat has successfully monetized its Discover tab in multiple creative ways.

Frequently Asked Questions

Q1: How does Snapchat ensure the quality of content on the Discover tab?

A1: Snapchat has a dedicated team that reviews and curates content on the Discover tab to ensure it meets the platform’s guidelines and standards. Publishers must adhere to Snapchat’s content policies and guidelines to have their content featured on the Discover tab.

Q2: Can anyone become a publisher on Snapchat’s Discover tab?

A2: While Snapchat has opened up opportunities for smaller publishers and creators to join the Discover tab, it still requires a certain level of established audience and content quality to be considered. Snapchat reviews potential partners based on their content, engagement, and audience reach before granting them access to the Discover tab.

Q3: How does Snapchat decide which ads to display on the Discover tab?

A3: Snapchat uses a combination of factors, including user interests, demographics, and ad relevance, to determine which ads are displayed on the Discover tab. It aims to show users ads that align with their preferences and offer an engaging experience.

Q4: Are there any privacy concerns with Snapchat’s advertising strategies?

A4: Snapchat takes privacy and data protection seriously. It has implemented robust measures to ensure user data is protected and anonymized. Users have control over the data they share and can customize their ad preferences in Snapchat’s privacy settings.

Q5: How does Snapchat share revenue with publishers?

A5: Snapchat shares ad revenue with publishers based on a negotiated percentage. The specific terms can vary depending on the partnership agreement, content type, and other factors. The revenue sharing model enables both Snapchat and publishers to benefit from the monetization of the Discover tab.

References:

1. Social Media Today – Snapchat’s Discover tab revenue strategies.

2. TechCrunch – Monetization options for publishers on Snapchat’s Discover tab.

3. Snapchat for Business – Advertising options on Snapchat’s Discover tab.