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1/ One more thread on the economics of Snapchat Spotlight. Sorry.
This one on the sustainability of buying content for $1 Million per day, when top Gen Z Content Creators are disinterested in your platform.
This one on the sustainability of buying content for $1 Million per day, when top Gen Z Content Creators are disinterested in your platform.
2/ Most of these insights come from a @DavidDobrik Views podcast a few weeks back. Cam Casey, a 19 y/o who has made $2.7M since Nov on Spotlight is a guest.
The preceding podcast David discusses making $1M himself on Spotlight. Both are worth a listen. https://www.stitcher.com/show/views-with-david-dobrik-and-jason-nash/episode/biggest-life-failure-80780142
The preceding podcast David discusses making $1M himself on Spotlight. Both are worth a listen. https://www.stitcher.com/show/views-with-david-dobrik-and-jason-nash/episode/biggest-life-failure-80780142
3/ For context, David made $15M from YouTube last year. And has $ brand sponsorships.
So $1M from Snap is like a rounding error to him. And he made it on just a couple uploads.
The $2.7M creator, on the other hand, uploaded 100 videos a day (the limit) and maxed out hashtags.
So $1M from Snap is like a rounding error to him. And he made it on just a couple uploads.
The $2.7M creator, on the other hand, uploaded 100 videos a day (the limit) and maxed out hashtags.
4/ What's interesting is the disinterest in Snap both creators have as a social network.
For Cam, it's a means to make money. He has way way more followers on TikTok. But this was relatively easy money starting in November.
There's no discussion of fan engagement.
For Cam, it's a means to make money. He has way way more followers on TikTok. But this was relatively easy money starting in November.
There's no discussion of fan engagement.
5/ David's story is even less intertwined with Snap.
He uploaded a couple videos, got an email telling him to fill out some forms, and then in a few weeks he'd be wired his six figure payout.
Totally on brand for David's "aw shucks" Midwestern personality.
He uploaded a couple videos, got an email telling him to fill out some forms, and then in a few weeks he'd be wired his six figure payout.
Totally on brand for David's "aw shucks" Midwestern personality.
6/ What neither of them talk about is the "why" of Snapchat.
What about the platform appeals to them besides money?
David is a YouTube guy, Cam is a TikTok guy. They aren't and don't present themselves as Snappers (is that a term?)
What about the platform appeals to them besides money?
David is a YouTube guy, Cam is a TikTok guy. They aren't and don't present themselves as Snappers (is that a term?)
7/ Every one of these UGC video apps has their own hook to making you money --
TikTok - top creators get brand sponsorships
YT - ad revenue split
Triller - buying away TikTok's creators
Snap - running a lottery
TikTok - top creators get brand sponsorships
YT - ad revenue split
Triller - buying away TikTok's creators
Snap - running a lottery
8/ So why is Snap's lottery approach possibly the worst of the four?
Zero stickiness.
You'll play the lottery a couple times, dreaming of winning big. But after a couple months of no money, you bail.
Zero stickiness.
You'll play the lottery a couple times, dreaming of winning big. But after a couple months of no money, you bail.
9/ Versus say TikTok and YouTube, where because you can monetize your Following via Brand Sponsorships or Ads, you have control.
What's worse is Snap is committed to splitting their lottery pot.
So the more players, the less likely you are to win, and the smaller share.
What's worse is Snap is committed to splitting their lottery pot.
So the more players, the less likely you are to win, and the smaller share.
10/ TikTok's secret sauce is their algorithm. Anyone riding a skateboard and drinking cranberry juice can become a star.
Not so much with Snap.
Their payouts are mainly view based. Which is why Cam is uploading 100 times a day and hashtagging. Gaming the system.
Not so much with Snap.
Their payouts are mainly view based. Which is why Cam is uploading 100 times a day and hashtagging. Gaming the system.
11/ At one point in the podcast, they joke about turning on the phone camera every couple minutes and dancing. Just to be able to post a video.
No thought, no quality, just gaming the system.
No thought, no quality, just gaming the system.
12/ Now let's talk about the Growth prospects of Snap's lottery approach.
I'll bet if you look at % growth since November, the videos uploaded growth FAR EXCEEDS video watching growth.
Why?
People are mainly enticed as creators not views. No TikTok algorithm.
I'll bet if you look at % growth since November, the videos uploaded growth FAR EXCEEDS video watching growth.
Why?
People are mainly enticed as creators not views. No TikTok algorithm.
13/ Like Triller, Snap needs videos.
So I guess $1 Million per day is a small price to seed content. But they're not really encouraging quality per se.
The top TikTok Creators -- the "quality" ones like Charlie D'Amelio flirt with Triller for some side money. But only a bit.
So I guess $1 Million per day is a small price to seed content. But they're not really encouraging quality per se.
The top TikTok Creators -- the "quality" ones like Charlie D'Amelio flirt with Triller for some side money. But only a bit.
14/ So until Snap builds a moat for Top creators, they're just leasing content.
Brand Sponsorships and Ad shares are guaranteed money. And lots of it.
A lottery splitting $1 Million per day is not.
Brand Sponsorships and Ad shares are guaranteed money. And lots of it.
A lottery splitting $1 Million per day is not.
15/ I get why they're doing it... they have to do it.
But I wouldn't expect them to get anywhere near the traction of TikTok.
They're still mainly a peer messaging and AR platform.
But I wouldn't expect them to get anywhere near the traction of TikTok.
They're still mainly a peer messaging and AR platform.
16/ Two final things...
A - You still don't see anyone sharing watermarked Snap videos on Twitter. But you see plenty of watermarked TikTok videos on here.
The Snap PMs need to get on that ASAP.
A - You still don't see anyone sharing watermarked Snap videos on Twitter. But you see plenty of watermarked TikTok videos on here.
The Snap PMs need to get on that ASAP.
17/ And...
B - The Tesla relationship w/ David Dobrik is so smart.
You max out on Bay Area people buying Tesla Xs at some point.
You want to then build out a ton of Gen Z model 3 buyers.
No easier way than getting David to do the marketing for you.
B - The Tesla relationship w/ David Dobrik is so smart.
You max out on Bay Area people buying Tesla Xs at some point.
You want to then build out a ton of Gen Z model 3 buyers.
No easier way than getting David to do the marketing for you.
