When the Snap ad checks hit [Issarawat Tattong via Getty Images]
[SOPA Images / Getty Images]
Tesla is recalling nearly 600K cars because of a feature that lets drivers play fart and goat noises outside their vehicles. Regulators said the sounds could pose a threat to pedestrians, while Elon blamed “the fun police.”
Investors weren’t feeling the love on Valentine’s Day: stocks ticked down yesterday as looming rate hikes and escalating Russia-Ukraine tensions weighed on markets. The US closed its embassy in Kyiv, citing a “dramatic acceleration” of Russian troops on Ukraine’s border.
A new chapter for Snapchat… Snap has had a wild start to the year: its shares plummeted 24% in a single day after Meta’s disastrous earnings earlier this month, before spiking 60% the next day after reporting its first profitable quarter. This week Snap introduced a feature that gives creators a slice of ad revenue — something YouTube and Instagram have been doing for years. The deets:
Cash for content… As new users become harder to find — Meta (fka FB) just saw its first drop in daily users — social platforms are focusing less on growth and more on creators who bring their followings with them. Last year Snap doled out $1M a day to top creators to promote its TikTok competitor, Spotlight. Some creators made $1M in two months (Snap ended that promo but still pays out millions monthly). Other social companies have showered creators with cash:
The Creator Cash Boom is just beginning… Now that creators are seen as crucial to social companies’ success, those companies are racing to build new monetization models to attract them. Beyond generic “creator funds,” Snap, Twitter, TikTok, and Insta aim to help creators sell merch and attract sponsors. In January Insta and TikTok started testing paid subscriptions that let creators charge fans for access to exclusive content. As the $100B+ creator economy grows, we’ll likely see social apps get more creative with creator tools.
"Lose Yourself"... still slaps. Millions tuned in Sunday to watch the LA Rams beat the Cincinnati Bengals in a nail-biter. While the players battled it out on the field, some of the biggest brands fought for our attention during time-outs. This year’s commercial themes shifted from the pandemic and politics to the future:
Free bitcoin during the bathroom break… the Super Bowl is one of the few places left to reach 100M+ consumers at once, and brands are paying more every year for that opportunity. The price tag for a 30-second commercial has jumped 3X since 2000, hitting a record $7M this year. Bowl spots are a chance for newer companies like Coinbase to introduce themselves to a wider demo, while legacy brands like Chevy can show they aren't just making your dad’s pickup truck.
Commercials aren’t the only option... OG Bowl advertisers like Pepsi and Nike ditched commercials altogether and were still among the most-viewed brands thanks to sponsorship deals (think: Nike team jerseys and Pepsi’s halftime show). Similarly, in-game sponsored brands (think: Bose sponsoring coaches’ headsets) earned $170M worth of exposure this year and generated over one hour of screen time — more than all the ads combined.
Authors of this Snacks own: Bitcoin and shares of Snap, GM, Pfizer, Twitter, Tesla, and Google
Correction: This newsletter has been updated to reflect a correction. We originally misstated that BlockFi planned to close its interest-earning accounts in the US. The company said existing customers of its BlockFi Interest Accounts would be able to maintain their accounts and receive interest as they always have, but cannot add to their positions as of February 14, 2022. BlockFi also said US customers would not be able to open new BIAs. The company added that it planned to register a new product under SEC rules. We regret our error.