The app was first launched in July of 2011 under the name Picaboo but was rebranded as Snapchat just 2 months later.
Demographics:
- 71% of users are under 34 years old
- 45% of users are between 18-24 years old
- 50% of male college students
- 77% of female college students
Sports teams are using this platform via a public account that anyone can add. Through that account they are able to post pictures and videos of the players in the locker room before a game, warming up on the floor, they can post from charitable events, they can even run promos on their account. Sports companies like ESPN use the app with a worldwide story that is accessible from all Snapchat users. Sports brands also run ads on stories that target users directly. Another way brands use Snapchat is through ‘geofilters’ that can be set to a specific location, nationwide, or even worldwide.
The app is making money through people, brands, and locations purchasing ‘geofilters’ which will appear on a user’s screen when they take a picture or video in a certain location. People are also able to pay a small fee for a geofilter in a specific location but for a short period of time. The app is making most of their money through ads which appears when users are looking through stories. Also, Snapchat’s discover feature allows companies to purchase their own story that will be accessible by all users.
2015 Revenue: $58.66 million
2016 Revenue: $404.48 million
2017 Revenue: Projected $774.1 million
The app is definitely facing a few challenges and competitors. In terms of brands, both organizations and individual people, some users are switching to other social media platforms. Some influencers stopped using Snapchat nearly as much because of the broader reach that Instagram offers them. Looking at it from a different angle, the company went public not long ago and they have steadily declined, now standing 48% lower than the price of their IPO.
Sources:
http://www.telegraph.co.uk/technology/0/owns-snapchat-created/
https://www.omnicoreagency.com/snapchat-statistics/
https://www.investopedia.com/articles/investing/061915/how-snapchat-makes-money.asp