Welcome to another episode of Strictly Business, the podcast in which we speak with some of the brightest minds working in the media business today. I'm Andrew Wallenstein with Variety. The Olympics are in full swing. For those following along outside of Paris, you may have noticed a change from Summer Games past. NBC has loosened its restrictions on what video gets on social media, and it's letting influencers in
on the action. Snapchat is among those partnering to cover the Paris Olympics, and here to talk about its approach to the event and the creator economy in general, is Jim Shepperd, director of Content and Global Creator Partnerships. More with him after this, we are back with Jim Shephard Snap. While he's here talking in Los Angeles with me. Snap has dispatched some of its best and brightest to Paris to cover the Olympics like never before. Thanks for coming in, Jim.
Thanks so much for having me. It's great to be here.
Cool. So this isn't Snap's first time at the Olympics, so give me a sense broadly of what's different this time around in terms of Snap's presence at the Games. Yeah.
So We're super excited to have a great presence at the Paris Games this year. You know, it's such a great example of a three to sixty partnership where we can work with an amazing broadcaster like an NBC who has some of the most valuable ip in the world. We've worked with NBC on the Olympics since twenty sixteen, since the Rio Games, and we've built on that partnership
ever since. And you know, this year we're going to have like I'm NBC making content like around the Games, that is I'm sold in a package for our advertisers. They are going to be using our in house creative studio to make lenses that are available globally. Uh so you can wear your country's colors on your face, which is really exciting. And this year, for the first time, we're actually taking creators to the Games to make behind the scenes content almost as as hosts for Snapchat with
this content. We have them Livvy Dunn, we have Harry Jouse, we have them Kai Sanat, who are some of the biggest creators in the world who are going to be there, you know, sharing their perspectives and then their content is part of the NBC package. So we're super excited about this, and I think it's just such a great example of how we can work with a partner like an NBC, like around a big tent pole to make something that's really meaningful for the snap community.
So obviously, you know, livvy Kai, these people if you're under eighteen household name in Olympics past, where these people allowed anywhere near the action, what was it like?
Yeah, I think there's definitely been an evolution of the perspective of not only NBC but some of our top
broadcasting partners. And I think for NBC, I mean, Snapchat is a great way to reach gen z. I mean we reach ninety percent of thirteen to twenty four year olds in over twenty countries, and so you know, for them, I think it's a really exciting opportunity to reach young people, and for us, I think it's a great way to just kind of drive one of these three sixty partnerships in you know, ways that that you know include behind the scenes content from the broadcaster, but also creators and
also you know, lenses, and so it's just a great way that we can work with them and expand on the partnership that we've done for over, like I'm eight eight years now.
So give an example, whether it's Livy or Kai. When you're talking about behind the scenes content, like what is the style of let's call it coverage that we could expect that might be different than you might see on old fashioned TV? Like what do they bring to the tape?
I think what's really, you know, kind of important to note is that Snapchat doesn't start with social media. It starts with hundreds of millions of people coming in every day to talk to their friends, and so it's built on real relationships, and then we've built a content ecosystem on top of that. And when I watch content from our creators or from our partners, I feel like those creators are my friends and they're sending me kind of
this very personal, authentic content. I mean. A great example is the men's USA basketball team was in London recently. They were they had an exhibition with South Sudan, which they almost lost to. But Jason Tatum, who's on Snapchat, he was posting because the team took the tube to the game, and so you had like all of these big men's basketball players on one of the train cars and you saw you know, everyday people coming home from work, and they were like, you don't see this every day.
And he posted a snap on his snapchat of all of the players and they barely fit in this train. And so it felt like a snap from watching his story, almost like a snap that one of my friends sent me. If one of my best friends was like, I'm NBA champion Jason Tatum, and so it's definitely, you know, snapchat
feels like an ant not an or. It's it's you know, content that feels very natural, and it feels like I'm kind of living these stars, lives with them, and so I think that's something that our community has really resonated with.
So we should be clear this is not like, you know, you use the example of the South Sudan game, which I still can't get over, by the way, but it's not you're not watching, you know, whether it's Cai or who whatnot. They're not covering the game and saying, oh, they're down by one in the final seconds. It's not coverage of the action. It's lifestyle content, but done in a very different way than you might see on NBC.
It's it's off kilter, it's behind the scenes and it's with a real kind of sensibility that is totally unique to the snap platform.
Yeah, I think that that's definitely a culture that we've built over the last several years. I mean, our content ecosystem has two parts to it. It has Spotlight, which is like short form video, and then it has stories where people are posting all of this day in the life content. And Snapchat invented stories, right, and then you know, many platforms wanted to adopt the Stories product. But you know, I think it's it's easy for platforms to copy products,
it's hard for platforms to copy culture. And I think you know something that we did a few years ago is we launched our Stories revenue share program, where it basically is a program where we insert ads in stories that are long enough, and we share revenue directly with the creators. Since we did that, we've seen this influx of creators come back to the platform, some have come for the first time, and they're posting these long, narrative
driven stories. They're really leaning in to the authenticity and the spontaneity that make snapchats so fun, and they're just sharing their daily lives. And so I think it's it's a real extension of a platform that's built on relationships, and when you're watching this content, you feel like you have a relationship with these stars. And so I think that's been content that our community loves, and I think, like to your point, it's not about what happens on broadcast.
There's definitely formats that are better for that. It's what's happening behind the scenes. It's about the energy and the emotion of the creators that are there. It's about the food, it's about the travel, it's about what people are wearing, you know, whether that's Coachella or or it's the super Bowl, or it's something like VM Olympics. I think, you know, we've really built an ecosystem where people go to get updated on what it's like to really be there.
Now. From a business perspective with NBC and I guess the Olympics themselves, I understand the rationale of cutting you guys in. They want to get the younger generation, who may not be as engaged as some of the older generations in the summer Games, and it's critical to get the younger generations in there. Social media is the on ramp to make that happen. Hence Snap's got to be there. Other social platforms have to be there. I get that from a business perspective. How does it work in terms
of your partnership with NBC. Is there a splitting of revenues? What how do you make that packaging work?
Yeah, So going back, I mean, if you think about Snapchat, you know, from the beginning, our content ecosystem started with Discover with twelve media partners, and we've expanded it ever since, and now we have thousands of media partners all over the world who are making content for Snapchat, and we're sharing revenue with them, and you know, it's been a
really substantial business model for them. And then you know, like I mentioned, you know, like a few years ago, we expanded that revenue sharing to creators and I think, you know, with the NBC partnership, it's an example about how we can package those things together around a big tent poll that our community loves, and then advertisers love to buy into that. So you know, for the NBC example,
they're making like original content around the games. That's content that's in a package that then like advertisers can buy into. And now for the first time, these creators that are going are making content and then NBC can actually use that creator content to turn it into advertisements to actually
promote their their broadcast. And so you know, this is a real example about how we've taken you know, many pieces of our content ecosystem that's been revenue generating for partners for years now, putting it together in a way that advertisers love.
So, I mean, there's there's a bunch of different pieces of the puzzle besides Snap Obviously here there's we just talked about the media partner, you're talking about the advertiser, you're talking about the creator. The revenue piece of this for the creator is really interesting because in the creator economy, you know, revenue sharing is a controversial subject to say
the least. And I'm not trying to single Snap out here, but it seems like there's been quite a tortured history across all these platforms in terms of revenue splits, so called creator funds, and incentivizing creators to get on platforms and participate. So what is the latest from Snap in what you guys do lay that out exactly, because there's probably been some evolution.
There, Yeah, for sure, I mean, taking a step back, I mean, our philosophy is that we want to build a platform that's really great for creators in terms of the content they make and their ability to connect with fans, but also we want to reward them, and so we have a number of programs for creators to actually make money on the platform. We have our Spotlight Incentive program,
we have programs for lens creators. The Story's Revenue Share program has been really substantial and it's something that I'm really proud of. We launched it in beta like a few years ago with just a handful of our Snapstars. We grew the program slowly and steadily ever since to make sure that as we added more creators, we weren't cannibalizing the program. For the creators that were in it, we were really happy by what we see, and then about a year and a half ago, we officially launched
the qualifications for the program. You have to have like fifty thousand subscribers, you have to have so many you know, monthly views. And the creators that have joined since then, I mean, we only continue to rack up the success stories there that have built six figure, biggest six figure businesses on our platform. There's creators that have built seven figure businesses, and so this has been a really substantial program.
And then I think what's really interesting the feedback that they've shared is they don't have to do anything they wouldn't normally do to make a living. They don't have to get expensive equipment, they don't have to edit long videos. And so the stories format, which we invented and now have infused with revenue share, has brought this culture of creators just really living their lives and then making a living doing it. And that's been really great to see.
And I assume that's perhaps what you would cite as a competitive edge against the multiple and frankly, I would assume larger social platforms that are also handing out their various revenue splits or funds TikTok and Instagram and YouTube and whatnot. But I assume at the end of the day, also it's just money and just you know, are you guys able to compete on that front.
I mean, here's what I'll say, we love this for our business, and you know, unlike a fund which is capped, these creators are posting and they're generating incremental ad inventory for us. They're making money for themselves. But they're also making money for Snap, and they're doing it in a way that they've told us they really like. And so look like we know that for this to work, we have to sell ads, but we're really confident in like our ability to do that, and we think this is
a great business model for us. I mean, it's also not new. We extended revenue share to media partners for years and built a business off of that. What we've done in the last few years is extend that that I'm revenue share to creators and you know, what we've seen is so amazing them them just living their lives. I mean, And what's I think really interesting is it's not just about the revenue share. They're also you know, working with brands. So, like an example is Sophie mud
who's one of our snapstars. She was posting their day and her like, I'm air conditioning broke and she went on a journey with her mom to get the Dison fan And so she's working with a brand that's showing up in an organic way in her story. And that brand it's not like a jingle, it's not something that's rehearsed. It's almost like old school product placement. And then in addition to working with brands, she's also you know, in our Story's revenue share program, and she's making a direct
revenue split from Snapchat. And so, you know, something we've heard from creators is that they love doing brand deals. That's great, but they don't want to always do brand deals. They don't want to have all of their content beholden to this branded content. And what they really want is for the platforms to adequately share revenue with them. And so I think what we've built is this this world where creators can work with us on revenue sharing, they can work with brands, and they can do it in
a way where they're just being themselves. And I think that's been great to see.
We'll be back with more with Jim Shepherd in just a moment. And we are back with Jim Shepherd, director of Content and Global Creator Partnerships at Snap, and here talking just as the Olympics are going on, and Snap has various influencers at the games. We're talking about strategy there and the creator economy in general. Jim, you've referred a number of times to the role that lenses, which of course is a patented Snap tool for the platform.
But for those who are not familiar with the platform, describe a bit how lenses work, how they're being used, particularly at the Olympics, or just in general.
Yeah, so Snap is really the leader in an augmented reality. We brought ar to mainstream and you know that's been a journey of ours over the last several years. And you know, it's it's it's a way where our community can have fun. It's a way where our community can share really fun content with their friends. And you know, it's a way where partners like I'm NBC, for instance, can use our in house creative studio to make these
experiences that people play with. I mean, what's so powerful about it is there's only so many thousands of people that get to go to the Games, but millions of people all over the world can where their country colors on their face. They can you know, use the Olympic rings in a lens that look like glasses. So that's been really exciting. And then you know it's extended to brands too. You know, brands love using our lenses to
promote their products. I mean, Paramount bought a lens for Barbie where you know, you could turn yourself into Barbie or like I'm into I Can. And then like the creators are using these branded lenses too. I mean, one great example was uh Dj Khaled worked with Wendy's. They had a special Dj Khalid biggie bag which was one of their you know, value meal like items, and he used the lens on his face making content in his story.
And then through the Snapstar Collab studio, which connects brands to our creators, Wendy's actually turned that content with the lens into an ad and they put paid media behind it. And so, you know, we're seeing these lenses are really resonating with the general Snap community. They're like, I'm really resonating with our creators, and they're resonating with brands, and so that's been great to see.
In addition to what you guys are doing with the Olympics, on a whole other front, you guys are doing something interesting in the sports world. Talk about the Snap Sports network that you guys recently launched.
Yeah, so the Sports network is is just another way where we're taking original content and we're putting it in a way that advertisers love to buy into. And I think, you know, the Olympics is just one example, but I think it shows a trend that around big tent pole moments, we're able to pull content together that includes our creators and you know, top broadcasters, top rights holders, and we're able to make a package that are advertisers love. It's
not just the Snap Sports Network. It's not just the Olympics. We do this with the Super Bowl, we do this with like a March Madness, and so you know, this is an example of a partnership with NBC that that you know, we've probably done more with this than anything else. But I think it provides a roadmap for a lot of these tent pole examples that we want to do moving forward.
But as tent poles go, is the Olympics sort of like uh, the ten pole of ten poles, so to speak, in terms of the investment and energies that you guys are putting behind.
I mean, it's it's definitely one of them. And I think we've definitely built on this on this partnership over the last several years, and you know, every time we do it, we do a little bit more. I think what's really interesting about this time is the creator piece, where for the first time we're actually working with NBC to send creators to the games. They're making behind the scenes content that's a that's then a part of that
the package that the advertisers can buy into. I think that's a roadmap for something that we want to do definitely more.
Of going forward. So and I'm not asking you for, you know, lay out your plans here, but hypothetically speaking, how does that model could that be applied in the future.
I think you know, what we've seen with creators, especially with Stories, is they're able to make great content just interacting with their fans, Like we have this Stories Stories Reply feature where they can do like Q and A's with their fans and you can make great content that their fans love just in their homes, but they make
better content when they get out in the world. They're having fun with friends, they're traveling, and they're going to events, and so, you know, going back to your question, I think it's it's definitely realistic that we could, you know, lean into this and make sure that we have creators at the super Bowl, that we have creators at March Badness, that we have creators at Coachella making content that brands love to buy into. I think that's definitely something that
we want to lean more into. Now we should make clear and correct me if I'm wrong. It's not as if you're asking for exclusivity from your creators. The reality is creators are on multiple platforms, competing platforms at any given time. Or is it when they're covering an event they are all in on snap and.
They're not on other things?
How does that work? Look? We definitely see Snapchat as an end, not an ore. And when I talk to creators and recruit them to the platform, like, I never tell them to not be on other platforms. I love
that they're well known for their content elsewhere. I think because of the way that snapchats evolved with spotlight and with stories and a place where creators can be themselves with no light counts, with no comments, and then they're making a living doing it, we've created a culture of a certain kind of content where they're just being themselves and I think that's content that our community loves, and
it's naturally different than the content that they post elsewhere. Like, I'm definitely going to see these creators posting a still image on like Instagram, for example, when they're at the Olympics, and that's great, but they're living their lives on Snapchat and I think, you know, that's something that we've really loved to see and I think that you know, their fans love it too.
And we've seen other social platforms. Be Real comes to mind, I think was recently sold to another company. But there is something about that sort of unfiltered life as it's happening kind of vibe that really does resonate in social media. Is that sort of maybe you know, the I don't want to say the entire secret sauce of snap but part of the magic.
You know, one of the you know, trends in the broader industry that I've seen over the last several years is so many creators that blow up on a short form video platform want to funnel their fans to a place that they can monetize and just a place that they can post longer form content that engages their community of top fans. And what we're seeing play out on Snapchat between Spotlight and Stories is that we really have both and we're so excited about the relationship that short
form video and then stories can play. These creators are using Spotlight to build an audience, and then they're funneling that audience over to their stories, where they're deepening their engagement with their fans. And now they're making money from their stories revenue share program in a way where they can be themselves. And we've heard that, you know, in a world of so much creator burnout, these creators are posting stories and it's been very conducive to their mental health.
You know, they don't have to again, like edit long videos, they don't have to get expensive equipment. They're just kind of being themselves. And I think that when you combine that with a place where they're getting fairly rewarded, I think those are kind of the building blocks that we want to continue to invest in.
Looking broadly at the creator economy, it also seems like the big revenue opportunities are off platform, whether it's merchandise or you know, there's also lots of talk about live streaming social commerce. Is there a snap philosophy here, like, are you guys trying to play in that live stream space in terms of setting up social commerce or is it about helping enable them to creators? I mean, to capitalize on off platform merchandise opportunities.
That's a really good question. I think it's something that we think about a lot. I mean, creators are their own media companies, they're their own brands, they're their own businesses, and you know, I talk to creators every day and I'm excited about the ways that they're you know, making a living on Snapchat. But I also get excited when they tell me about their off platform businesses. And something that they tell me a lot is that Snapchat is
their most valuable fan base. They may or may not have more views or more followers on other platforms, but so many creators tell me that when they post their merch to Snapchat, or they post their podcast or their music, it sells out or you know, it like rises in the podcast rankings because their Snapchat fans are their most valuable fans. And so, yes, we want them on the platform engaging with us on the ways that they can make a living on our but we also love that
they're using Snapchat to promote their off platform businesses. And then, you know, to your question about live streaming, I mean, live streaming is really interesting. I know it's working. You know, in a lot of places, it's hard to moderate and one of the things I'll say is that we really want to build a place that's also safe for our creators. We love that, you know, there's no comments, there's less bullying. They're just kind of being themselves and you know, they
can make a living. And you know, one of the things we've seen since we've infused stories with revenue share is creators are posting one hundred snap stories, one hundred and fifty Snap stories, two hundred snap stories. They're showing everything they do in the day, and so while it's not live, you definitely feel like you're living their life with them. And I think that, uh, you know, that's been really inspiring to see.
Two hundred Snap stories. It's like the equivalent of Warren Peace on the Snap platform.
I mean yeah, And you know sometimes people say that that seems like a lot, but when you watch these stories and you see the creators make these stories, you know, again they're just really living their lives. And so I think it's really been, you know, something that they've been enjoyed to do, and it's made great content that their fans love.
Well. I'm looking forward to taking in all the great content that comes in from Paris on the Snap platform. Jim, thanks for coming in and talking about it.
Thanks so much for having me, Thanks for listening.
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