clock menu more-arrow no yes mobile

Filed under:

Snap paid out $58 million to media companies last year

That’s up from about $10 million in 2015.

Snapchat Discover

One interesting nugget from Snap’s IPO filing: The company paid out about $58 million in revenue-sharing payments to publisher partners in 2016. That’s up from about $10 million in payments in 2015.

(For context, Snap’s total revenue was $404 million last year, so those payouts represented almost 15 percent.)

Snap works with publishers — such as BuzzFeed, Vox Media (which owns this website), the Daily Mail, Bleacher Report and, as of today, the New York Times — to supply channels for its Discover product, under revenue-sharing agreements.

Both parties are typically able to sell ads to display within the channels, but Snap sells most of them itself: Last year, 91 percent of the company’s recorded ad revenue was “Snap-sold,” versus about 9 percent partner-sold, according to its IPO filing.

(It’s worth noting that Snap reports Snap-sold revenue on a gross basis versus partner-sold revenue on a net basis, so it’s not a complete picture of the gross Snapchat-ad-sales market.)

Such arrangements are typical for companies that run ad platforms for publishers. Google, for example, pays out about 20 percent of its total advertising revenue as so-called traffic acquisition cost.

This article originally appeared on

Sign up for the newsletter Sign up for Vox Recommends

Get curated picks of the best Vox journalism to read, watch, and listen to every week, from our editors.