Social Media Platforms Start Bidding War for Content Creators

A recent report from CNN outlines how social media platforms are now having to work harder to keep content creators and online talent exclusive to their platforms. Platforms are throwing cash at prominent content creators, for example, one pair of influencers recently received almost $30,000 for a single Snapchat video.

In an article titled “Social Media Platforms Are Going to War For Online Talent,” CNN reports that social media websites are having to fight to attract and keep online content creators on their platforms.

CNN discussed two online creators, Katerina and Yinon Horwitz, who recently received almost $30,000 from Snapchat from just one video they posted to Snapchat’s short-form video hub, Spotlight. CNN writes:

Creators are the lifeblood of any social media platform, driving trends and engagement and building a loyal community. But increasingly, social media companies seem to be waking up to the reality Horwitz described: Creators may join a platform to build an audience, but ultimately the platform has to pay up for them to stick around. In recent months, major tech companies have stepped up to try to do just that, rolling out more and more ways for creators to make money on their platforms, both from ad revenue on their content and direct handouts.

Snapchat is paying out a total of $1 million a day to those users who make the most entertaining videos for its TikTok rival Spotlight. TikTok launched a $200 million creator fund last year, which promises to reach hundreds of thousands of creators with plans for it to grow to $1 billion over the next three years. Twitter recently announced it’s exploring the possibility of users becoming paid subscribers to their favorite Twitter accounts. And on Sunday, the audio-focused app Clubhouse announced an accelerator program aimed at helping aspiring creators build and monetize an audience.

These announcements reflect both the value of top content creators to the platforms and the fact that there have never been more avenues for internet personalities to make money directly.

Ben Ricciardi, founder of influencer marketing agency Times10, commented to CNN: “Social media is a war right now. Twitter is trying to figure out ways to bring back larger and larger audiences. Snap is really incentivizing creators to try to come back to the platform or spend more time on the platform.”

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