Snapchat’s plans to grow its revenue and build advertiser relationships are running into an interesting conundrum: social media stars. Dozens of content creators with huge followings have flocked to Snapchat from other social media apps, posing competition to Snapchat’s ad ambitions.
These so-called influencers, names like Shaun McBride and Jake Paul, have been signing deals with big consumer and media companies, like Mondelez and Major League Soccer, and creating branded photos and videos on their Snapchat accounts. At the high end, these social media personalities are likely pulling in six-figure incomes from Snapchat endorsement deals. And because they strike these deals directly, Snapchat isn’t getting any of the ad revenue.