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Here’s how Snapchat plans to make money

May 8, 2015, 5:56 PM UTC
Photograph by Andrew Harrer — Bloomberg/Getty Images

Snapchat will start charging companies two cents to put video ads on its picture-sending platform, finally presenting a plan for just how the company plans to make money.

A 10-second ad on Snapchat will cost advertisers two cents per view, according to AdWeek.

Snapchat made the announcement at the Daily Mail/Elite Daily Digital Content NewFronts presentation Thursday.

For years, investors and journalists have questioned how Snapchat —which is especially popular with Millennials — would turn its strong user base into cashflow for investors. This latest development could be a sign that the company is trying to move into a position to start bringing in revenue.