Snapchat content is getting less profitable

The Future. Numerous news publishers are reporting that their Snapchat content profitability is taking a steady nosedive. As platforms like TikTok continue to siphon away ad dollars, audiences, and revenue, Snapchat — and other companies like Meta, Google, and more — may need to take a long hard look at their strategies if they want to keep their content partners happy.

Numbers go down
Some news publishers are finding that their Snapchat content is getting less and less profitable.

• A digital media company launched two new shows with Snap (custom, video-heavy content that required lots of editing), but saw virtually no views.

• From August 2022 to January 2023, they also noticed that monthly revenue from Snapchat decreased by about 60%.

• Another news publisher noted that their company’s revenue was “substantially down” year over year in a trend that started in the middle of 2022.

Cost cutting
All this comes after Snap’s layoffs at the end of August last year. Like the rest of the tech industry, Snap has been shedding staff — about 20% — and pulling back on earnings calls. Meanwhile, it’s had a host of leadership changes, with top execs leaving one after the other.

Still, not all news publishers are struggling to stay afloat. PinkNews has seen continued success with its content. But for smaller or even mid-sized publishers to make content that’s worth the effort, it’s an uphill battle. And the barrier to entry for repackaging content onto TikTok is much, much lower.