Snapchat will place advertisements within stories and share the revenues with creators.
The social media platform is testing the new feature that will provide a new method for creators on the app to make money.
Snapchat is trialling the idea in the stories of a small group of US creators with a wider rollout due to happen in the coming months.
The firm says that the revenue share is based on a formula that takes into account metrics such as posting frequency and engagement.
The feature will only be available to Snap Stars - creators or public figures with a large number of followers that have been verified by Snapchat and are indicated by a gold star.
In recent times, Snapchat has adopted various ways for creators to make money from their presence on the app as users already see ads in between friends' stories and on the Discover section. However, this will mark the first time that creator will get a cut of the advertising revenue.
Snapchat CEO Evan Spiegel recently suggested that social media users were moving away from stories and toward TikTok-esque content and hinted that the company would have to change to meet the demands of the public.
He told investors earlier this month: "This is a continuation of the trend we have observed throughout the pandemic, and friend story posting and viewing per daily active user have not returned to pre-pandemic levels.
"While we are hopeful our community will in time return to the friends story behaviours that we observed prior to the pandemic, we are focused on innovating on our content offerings to better serve our community today."
