Snapchat revealed that its Spotlight service counts 100 million monthly users on the platform to outstrip Tik Tok with 700 million users. According to Mail report, on Friday, Snap made a big bet on UGC for the launch of Spotlight, distributing $1 million a day since December to top creators trying out the app’s new feature.
On other hand, the new feature is available in 11 countries including the US, UK, France, Germany and Australia. Creators can make up to 60-second long Snap videos and post them to Spotlight. The interface is similar to TikTok but there are no public comments. Top creators with the highest number of Spotlight views can earn up to $1 million per day.
Meanwhile, Snap CFO Derek Andersen explained that it added $40 million to the company’s cost of revenue in the last quarter of 2020. But in-feed ads could come soon to the feature. Andersen noted that the company is highly encouraged by the initial results and excited about the potential for Spotlight to further expand our monetization opportunity in the future.
Moreover, Snapchat app added 15 million new users last quarter 2020, bringing its total daily active users up to 265 million. The company reported $911 million in revenue for the quarter, a 62 percent increase from last year. Meanwhile, it cautioned that Apple’s upcoming iOS 14 update, which requires apps to ask for users’ permission for ad tracking features, could present a risk to the company.
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