Behind the Puppy Dog Lenses, Snapchat Is a Living, Breathing Business
When Snapchat CEO Evan Spiegel walked away from a $3 billion buyout offer from Facebook three years ago, the move shocked many observers who couldn’t believe a small, unprofitable startup could be so bold. But that bet is poised to pay off. Snapchat, a camera and fleeting messaging app favored by teens, is reportedly going public early next year with a valuation of at least $25 billion.
So, why is a five-year-old app with messages that don’t even hang around more attractive to investors than Twitter, which is having difficulty finding a buyer despite being an entrenched tech brand whose service is used by many heads of state? In this excerpted article originally featured in our parent publication, Knowledge@Wharton, analysts explore some of Snapchat’s strengths and areas of growth as the company prepares to start selling its stock to the public.
A Growth Trap for Snapchat?
The numbers show that Twitter is stumbling, while Snapchat has stayed surprisingly resilient. Since 2013, Snapchat’s U.S. audience has grown by nearly 76% compounded annually, according to an October report by Bloomberg Intelligence. It has an estimated 220 million to 250 million monthly active users, of who up to 85% are ages 13 to 34. In contrast, Twitter reported a mere 3% increase in average monthly active users worldwide to 313 million in the second quarter from a year earlier, according to a U.S. Securities and Exchange Commission filing. This year, Snapchat’s daily active users has topped 150 million, surpassing Twitter, according to Bloomberg News.
As it gets closer to an Initial Public Offering (IPO), the issue before investors is this: Will Snapchat fall into the same slower growth trap as Twitter?
Wharton marketing professor Ron Berman says the answer lies in how Snapchat plans to pivot. “The strategic question in my opinion is whether Snapchat is closer to Twitter or to Facebook in usage and user perception. By becoming closer to Facebook with richer content and properly integrating commercial and private content, Snapchat may become a substitute for Facebook and this way be able to monetize its platform.”
Data is the name of the game. Facebook has deep troves of information about its users beyond age and gender. It knows a user’s likes, hobbies, family relationships and many other data points. Not so with Twitter. “Twitter’s monetization challenge has been data. Unlike Facebook, Twitter doesn’t have as much data on user demographics, preferences, or likes and dislikes,” says Jonah Berger, a Wharton marketing professor. And Snapchat has the same problem as Twitter. “Sure, they have traffic, but without knowing that much about their users, it becomes harder to serve them targeted ads, and as a result, harder to make money,” he adds.
CEO Spiegel’s answer is to deepen user engagement on Snapchat by adding more fun features as well as news and other content. For example, it offers users “geofilters” to overlay on their photos or snaps. Another popular feature is the ability to swap faces with friends. Snapchatters can also pop “lenses” on selfies to make themselves look like puppy dogs or bumble bees.
As for content, the company has unveiled a feature similar to Facebook’s News Feed called “Stories,” where users can compile different experiences. Stories and snaps are filed into albums called “Memories.” “Live Stories” lets individuals at the same event contribute to a flow of experiences. Meanwhile, a new “Discover” section features articles from CNN, Buzzfeed and other publishers.
And it is in talks to develop “Snapchat Shows” video series, according to Recode. Ads are inserted in these new services. Snapchat’s business has been growing fast. For this year, it is projecting revenues between $250 million to $350 million, which would be an increase of as much as 500% from $59 million in 2015, according to TechCrunch. For 2017, the company is targeting $500 million to $1 billion. “Snapchat has done a great job monetizing its service so far” despite serving a young audience famous for being fickle, notes Kartik Hosanagar, Wharton professor of operations, information and decisions. “In addition to standard ads, they have done sponsored lenses that allow users to apply filters to their selfies.”
For instance, a Taco Bell-sponsored lens that turned users’ faces into talking tacos — complete with fiery eyebrows as the chain’s signature gong rings in the background — racked up 224 million views in one day. This type of alliance is an “excellent example of integrating the marketing seamlessly into the user experience. It doesn’t hurt user experience and also provides great value to advertisers,” Hosanagar says.
The Mind of the Consumer
The bottom line is that while Twitter’s service has remained essentially the same, Snapchat has kept innovating to maintain its competitiveness. The app’s rich $25 billion IPO valuation “may reflect the possibility that what’s now an entertainment and video messaging service could become a portfolio app hosting various payment, e-commerce and communications functions that exceed its current capability,” Bloomberg Intelligence noted.
A clue to Snapchat’s reinvention can be found in its slate of acquisitions since 2014, the report said. These buyouts include Vurb, a mobile search app, Obvious Engineering, a 3-D photography company, Bitstrips, a personal emoji and comics maker, Looksery, a face-transformation services that is incorporated into Snapchat’s Lenses, Scan.me, a QR-code startup, Vergence Labs (which powers Spectacles) and video chat service AddLive.
As it grows, maintaining a focus on users will be critical. “Snapchat, or any service that collects textual data on customers, has the opportunity to use Natural Language Processing and sentiment analysis to understand the mind of the consumer,” says Eric Bradlow, Wharton marketing professor. Everything from photos stored to taste in music “can all be very strong signs of your… product preferences.”
Wharton marketing professor Jerry (Yoram) Wind points out that Snapchat currently caters mainly to U.S. users, and as such has plenty of growth opportunities abroad. “With the right innovative and courageous leadership, they have a high likelihood of achieving their and the stock market’s expectations.”
But L&F Capital Management, a Facebook shareholder, has said that Snapchat’s features are “easily replicated” and that Facebook-owned Instagram will eventually attract hordes of teens from Snapchat. After Instagram unveiled its own disappearing ‘Stories,’ it has grown to 60% the size of Snapchat in just two months to 100 million daily active users. L&F said, “Snapchat will be a victim of Facebook’s app consolidation plans. Through replicating and improving Snapchat’s core features, Facebook will consolidate the user base and recapture the all-important youth demographic.” Facebook is reportedly testing a Snapchat Stories clone called Messenger Day, which also disappears in 24 hours, in Australia.
Hosanagar says that Snapchat’s biggest challenge is to “stay relevant as the current generation of Snapchat users ages and a new generation comes on within five to 10 years.”
Related Links
- K@W: Can Snapchat Avoid Twitter’s Slowing Growth Trap?
- WSJ: Snapchat Spurned $3 billion Acquisition Offer from Facebook
- WSJ: Snapchat Parent Working on IPO Valuing Firm at $25 Billion or More
- Recode: Snapchat Wants to Stop Sharing Ad Revenue with its Media Partners
- Seeking Alpha: Facebook: Inching Closer to Eliminating Snapchat
- TechCrunch: Facebook Is Now Testing Its Snapchat Stories Clone in Australia
Conversation Starters
Lots of people consider business to be a numbers game—revenues, active monthly users, and so on. But, in fact, business is so much more about people. How does that theme play out in this story? How are people and personalities behind the success of companies like Snapchat?
The story makes the point that Snapchat has “kept innovating to maintain its competitiveness.” What does this mean? In what ways is the company innovating? Why is innovation so critical to success for most businesses, but especially within an industry involving social media apps?
As a user of Snapchat, how do you feel about your own role in the growth and/or demise of this business? Take the Taco Bell-sponsored filter, for example. Did you ever consider the advertising aspect of this fun feature? And what about the claim that Instagram, now owned by Facebook, will just copy Snapchat’s features and teens will leave one app for the other? Do you agree?
I am a very active Instagram user. I started off with Snapchat a few months ago and its CRAZY. When Instagram first introduced stories, rumors were that Snapchat will now die but the fact is, even after this introduction, snapchat is favored more. Maybe its because of the fact that people are more comfortable using Snapchat because is is solely for that purpose whereas people have a different mindset for Instagram; it’s more of ‘photo-facebook’. I believe Snapchat has the potential to grow tremendously only if it can ‘tap’ that potential.
I read this article about Snapchat because I am a user of snap and thought it was interesting. I thought twitter was very popular, but apparently snap has been killing twitter. I think it’s weird that the creator of snap was bought out considering how many people love it. I don’t think I could ever create an app and have it become so popular, I wouldn’t even know where to start!
Hi Emily! Thanks for your comments. One reason that the creators of products, services and companies are bought out is because they have what’s called an “exit strategy.” They can make millions of dollars on something they created and built and when it reaches a certain point of growth, they decide it’s time for them to sell and move on…and let others worry about the business. Often entrepreneurs will sell their startups for huge sums of money and then invest some of that fortune into their next idea.
I read this article mainly due to the fact that I use snapchat frequently along with twitter. I was completely in shock that snapchat had been doing significantly better than Twitter as I had thought twitter would be more popular.
I’ve been using Snapchat for years now and it just keeps getting better. Although my favorite social media is Instagram, Snapchat is a close second. I love all of the geofilters because I can show people where I am in a cooler way than simply writing it. I also love the filters that move with my face for videos and pictures. I knew Snapchat was very popular, but I never thought about the whole business and money behind it.
Hi Rebecca. Thanks for your comments. Why do you say that Instagram is your favorite social media platform? Would love to know more!
I was interested in reading this article because I am a frequent user of Snapchat. I have noticed its constant improvements and upgrades and think that it is cool because I have access to different magazine like articles that relate to my everyday life. Although I was surprised to see how good Snapchat is doing, and never would have guessed it to be doing better than twitter.
1.How does data support the decisions Snapchat makes?
– The data snapchat receives from helps them make the decisions they make because it’s about the users and what they want. How can you know what the people want and what they like is you don’t give them a chance to answer.
2. What data are you contributing daily by using snapchat?
– When contributing to snapchat’s data I post stories and continue streaks with friend’s on snap.
3.Lots of people consider business to be a numbers game—revenues, active monthly users, and so on. But, in fact, business is so much more about people. How does that theme play out in this story? How are people and personalities behind the success of companies like Snapchat?
– The people and different personalities behind snapchat help the users because they are ordinary people. They are just coming up with different tools what not to help express our self. By them coming up with these different filter keeps people using their app also.
4.The story makes the point that Snapchat has “kept innovating to maintain its competitiveness.” What does this mean? In what ways is the company innovating? Why is innovation so critical to success for most businesses, but especially within an industry involving social media apps?
– Snapchat has been the most innovative app the year. It always changes, when I say changing this mean new filter, different ways to type, add friends, different ways to view story. The list goes on and on. The help keeps up with the competitor such as Instagram that now has stories.
5.As a user of Snapchat, how do you feel about your own role in the growth and/or demise of this business? Take the Taco Bell-sponsored filter, for example. Did you ever consider the advertising aspect of this fun feature? And what about the claim that Instagram, now owned by Facebook, will just copy Snapchat’s features and teens will leave one app for the other? Do you agree?
– Snapchat once had Wendy’s filter featured on their app, and did use it. For on, because I work there and I do think that is a great advertisement more the company and the app.
– I do agree that since Instagram now how the stories light snapchat some people would more than likely just use Instagram. But In other people’s eyes including me would not because of it not where it originally started and would stick to what is better and what I know.
1. Lots of people consider business to be a numbers game—revenues, active monthly users, and so on. But, in fact, business is so much more about people. How does that theme play out in this story? How are people and personalities behind the success of companies like Snapchat?
– The people behind the Snapchat App have to keep up with what is going on right now. They have to know what’s the new hype and who is the new face for the moment. For example at one point DJ Khaled was the hype. He had his own filter and everyone was running around screaming “major key alert”. Snapchat works as a place for the news and for what’s happening at that very moment. The filters that are made are outstanding because it’s what the people want. I’ve never heard anyone talk down on the filters because their are so many options to choose from.
2. The story makes the point that Snapchat has “kept innovating to maintain its competitiveness.” What does this mean? In what ways is the company innovating? Why is innovation so critical to success for most businesses, but especially within an industry involving social media apps?
– It basically means that Snapchat is evolving for the people. People eventually get tired of the seeing the same thing all of the time and expect things to change. Snapchat started with a few basic filters and stories but now it has skip features, geotags, more filters, comment options, messaging options, video options and more. It is critical to evolve because as a human we expect growth out of things and if we can’t get that we move on to the next app.
3. As a user of Snapchat, how do you feel about your own role in the growth and/or demise of this business? Take the Taco Bell-sponsored filter, for example. Did you ever consider the advertising aspect of this fun feature? And what about the claim that Instagram, now owned by Facebook, will just copy Snapchat’s features and teens will leave one app for the other? Do you agree?
– As a Snapchat user I feel as though I do add a bit of growth to how much a the app has been used. Everyone contributes to the use of the app if they download and open it. My role is to put the app into use just like any other app that i’ve ever used.
– Aside from all of the advertisements I don’t particularly care for them. I actually hate advertisements and I use to like the fact that Snapchat didn’t have them. I also know that through time every app will eventually convert to having advertisements because that is the way that people sponsor it.
– I have hard time believing that people will convert back to instagram full time. Snapchat has a mini twist on it that is different from other apps that we’ve seen. For example Myspace use to be in the charts but then Facebook came to play. After Facebook came into the picture everyone is like “what is myspace?”. At this point instagram is and should be used for only pictures and Snapchat should just have live videos as it does now. Instagram has tried to add stories but it’s not as popular as Snapchat since Snapchat adds new features as much as they can.
1.How does data support the decisions Snapchat makes?
Data really doesn’t support the decisions snapchat makes because unlike Facebook, Snapchat and Twitter don’t have much saved data on users. So they can’t use the data they have to attract customers and add the necessary ads. Instead they have added innovative features to have users deepen users engagement.
2. What data are you contributing daily by using snapchat?
You are providing facial recognition, you provide what you are interested in by subscribing to certain articles and news under the Discover page. One important thing you provide by using snapchat is what you talk about. Since snapchat programs to collect textual data on users to see how we think and talk. Even things like the photos we store and music we listen to and upload. Those all add to the data we are basically providing snapchat.
3.Lots of people consider business to be a numbers game—revenues, active monthly users, and so on. But, in fact, business is so much more about people. How does that theme play out in this story? How are people and personalities behind the success of companies like Snapchat?
Business of course is numbers and games but it’s also pleasing the consumer on what they want, what they like, or even with things they’ve never thought they liked but now do just because of the way it was presented to them. This is what snapchat is about. They are taking risk by providing these innovative ideas but it’s a way of thinking out the box to persuade others. That’s how they are a successful company and still having little data on users. They find new ways to attract the public and they didn’t need all those extra thing bigger unsuccessful companies are doing.
4.The story makes the point that Snapchat has “kept innovating to maintain its competitiveness.” What does this mean? In what ways is the company innovating? Why is innovation so critical to success for most businesses, but especially within an industry involving social media apps?
This means that even though the company tactics may not seem wise because they are not producing much revenue like Facebook they are expanding and being use more and more, passing other apps. They are always releasing and updating new things to keep users attracted. If they stayed with the same lenses and not changed them or added special and newer ones, they probably would’ve sold the company or just deleted the app. It’s critical for companies to keep innovating because if not users will eventually lose interest and the customers opinion and review matters. Social media apps especially have to be on the game because of new apps coming out and the youth always eager for newer and better things. Snapchat has added lenses and changed them daily for users. They have added geofilters so you can have cool filters to decorate your adventures. They even add your own character that you can create and customize to look like you.
5.As a user of Snapchat, how do you feel about your own role in the growth and/or demise of this business? Take the Taco Bell-sponsored filter, for example. Did you ever consider the advertising aspect of this fun feature? And what about the claim that Instagram, now owned by Facebook, will just copy Snapchat’s features and teens will leave one app for the other? Do you agree?
I feel that we as users are contributing to maintaining snapchat as a trendy and popular app. We are the main ones who promote it, use it, and basically test out new items. I never actually considered the advertising that went with it. I just used the filter because it was cool and a new filter is interesting and funny to use to send to friends. I don’t agree with that claim. It’s just copying another app for competitiveness and they can’t be original and come up with newer initiatives. I feel that users will actually hate Instagram more and a switch to snapchat because they are trying so hard to be another app. Eventually snapchat will catch up to their tactic and and retaliate with something even better. I will stick to snapchat even if instagram does that.
the way data shows the decisions is that their growth has not stunted like many other platforms such as twitter. every time they add new feathers or a new filter or application on to snapchat the crowed that uses it incenses once more they use data.
i contribute to the number of adds i see and the number of user on the application
instead of relying on sign up fees or ads they use peoples appeal to new things such a s filters and want to see other people when someone adds a story people get onto the app or when we communicate with others it we use the app and generate revenue for them. they don’t throw adds into our faces like facebook, twitter, or tumber and other websites they have an area for us to see clips of news or tv shows which we look for ourselves. we uses sponsored filters we see them and use them not knowing it an ad.
they add new things constantly adding filters or features that give a new twist to snapchat. if a company odes not innovate they get out paced by their competitors but with social media its a much faster race if a person finds that the website is boring or out dated they will move on to a new fresher app just like with Myspace and Facebook
i don’t use snap chat i only use it about once or twice a month so i don’t really feel anything. i say it as an ad but i never really cared because again i never really use the app but the clams about Instagram is not really surprising when ever their is an innovation people seek to copy it and use it for their own gain its how business go if you don’t get a patent,. i don’t agree with it but by law what they do is not wrong as long as their is no patent
1.How does data support the decisions Snapchat makes?
Data contributes alot to Snapchat. Snapchat has the same problem as Twitter. Twitter doesnt have as much data on user demographics, preferences, or likes and dislikes. If they dont know much about their users it becomes harder for them to make money.
2. What data are you contributing daily by using snapchat?
-The data I contribute to is by watching stories, making stories, and making streaks with people.
3.Lots of people consider business to be a numbers game—revenues, active monthly users, and so on. But, in fact, business is so much more about people. How does that theme play out in this story? How are people and personalities behind the success of companies like Snapchat?
– Snapchat tends to come up with new filters and they have a new things called “discover”. You can watch famous people on another page. Business can be considered numbers and games but the main point is that it achieves what people like and what they want to see. Snapchat takes daily risks by making innovations just to please others. The money comes from the people and if people dont like what they see. Companies will lose money.
4.The story makes the point that Snapchat has “kept innovating to maintain its competitiveness.” What does this mean? In what ways is the company innovating? Why is innovation so critical to success for most businesses, but especially within an industry involving social media apps?
– The story means that Snapchat constantly makes new features in order to stay p in the game with other social media. The company is innovating by putting more money towards the app. They create new filters often. Innovation is critical in social media apps because everyone likes new things. If they dont keep new things coming, people will get bored with the app.
5.As a user of Snapchat, how do you feel about your own role in the growth and/or demise of this business? Take the Taco Bell-sponsored filter, for example. Did you ever consider the advertising aspect of this fun feature? And what about the claim that Instagram, now owned by Facebook, will just copy Snapchat’s features and teens will leave one app for the other? Do you agree?
-I agree that teens will leave one app for another one day. I feel that I’ve leaned more towards Snapchat over the months. I still have Twitter and Facebook in my phone but I really do not get on the apps often. I think Snapchat is more appealing to me because I actually get to have a visual of what others are doing. I also enjoy the filters.
1.How does data support the decisions Snapchat makes?
I think that the issue that snapchat is facing, that they don’t have means of gathering much data that can ultimately lead them to fall in popularity much like twitter. Snapchat CEO is making his decisions on optimism that his corporation can stay ahead by introducing innovations.
2. What data are you contributing daily by using snapchat?
Personally I don’t think that I contribute much just because I don’t really venture into the news feeds but I guess I do help them figure which filter are more popular than others based on the frequency I use them. Everything I do on snapchat can ultimately contribute as technology is going to give them feedback on what my interests are and how I communicate.
3.Lots of people consider business to be a numbers game—revenues, active monthly users, and so on. But, in fact, business is so much more about people. How does that theme play out in this story? How are people and personalities behind the success of companies like Snapchat?
Of Course numbers are always going to be in play but without knowing the people the business has little chance of prospering since social media revolves around them. Not only is the interest of the public what makes snapchat so interesting I think snapchat staff is chosen for their creativity and interest because they are the ones offering us new stuff like bitmoji and new geofilters. Some of them surprise me and thats what makes me want to use them.
4.The story makes the point that Snapchat has “kept innovating to maintain its competitiveness.” What does this mean? In what ways is the company innovating? Why is innovation so critical to success for most businesses, but especially within an industry involving social media apps?
There is little that snapchat has not made effort to improve. From the way you use filters, how you add friend, how to encourage conversation (streaks anyone?). Snapchat is not a social media that is used by the whole family and basically stays between the teens and early thirties, with said pool of young consumers you always have to add new stuff to keep the interest of fickle and easily bored. Especially since snapchat does not have the means to personalize what you see to fit what interest you in a way the facebook and instagram does they’re kinda stuck on a guessing game. Throw throw the innovation out to the public; they like it then keep it, they don’t its gotta go.
5.As a user of Snapchat, how do you feel about your own role in the growth and/or demise of this business? Take the Taco Bell-sponsored filter, for example. Did you ever consider the advertising aspect of this fun feature? And what about the claim that Instagram, now owned by Facebook, will just copy Snapchat’s features and teens will leave one app for the other? Do you agree?
I feel like I’m doing my job by using the app regularly to communicate with my friends who then too are using it. I don’t think I have much control over the problem because its dependent on how everyone else feels about it and how long it will keep their interest. When the filters came out featuring movies and food I knew it was a new means of advertising. I thought it smart and didn’t really bother me at all as long as the filter caught my silly interest. I definitely see instagram trying to copy snapchat but I don’t see it being as successful as the original. Instagram has so much going on already and it just won’t do to trying to shove new updates down our throats. We see what’s going on and most of us don’t like it. I still continue to interact more personally with people on snap.
1.
I think that the issue that snapchat is facing, that they don’t have means of gathering much data that can ultimately lead them to fall in popularity much like twitter. Snapchat CEO is making his decisions on optimism that his corporation can stay ahead by introducing innovations.
2.
Personally I don’t think that I contribute much just because I don’t really venture into the news feeds but I guess I do help them figure which filter are more popular than others based on the frequency I use them. Everything I do on snapchat can ultimately contribute as technology is going to give them feedback on what my interests are and how I communicate.
3.
Of Course numbers are always going to be in play but without knowing the people the business has little chance of prospering since social media revolves around them. Not only is the interest of the public what makes snapchat so interesting I think snapchat staff is chosen for their creativity and interest because they are the ones offering us new stuff like bitmoji and new geofilters. Some of them surprise me and thats what makes me want to use them.
4.
There is little that snapchat has not made effort to improve. From the way you use filters, how you add friend, how to encourage conversation (streaks anyone?). Snapchat is not a social media that is used by the whole family and basically stays between the teens and early thirties, with said pool of young consumers you always have to add new stuff to keep the interest of fickle and easily bored. Especially since snapchat does not have the means to personalize what you see to fit what interest you in a way the facebook and instagram does they’re kinda stuck on a guessing game. Throw throw the innovation out to the public; they like it then keep it, they don’t its gotta go.
5.
I feel like I’m doing my job by using the app regularly to communicate with my friends who then too are using it. I don’t think I have much control over the problem because its dependent on how everyone else feels about it and how long it will keep their interest. When the filters came out featuring movies and food I knew it was a new means of advertising. I thought it smart and didn’t really bother me at all as long as the filter caught my silly interest. I definitely see instagram trying to copy snapchat but I don’t see it being as successful as the original. Instagram has so much going on already and it just won’t do to trying to shove new updates down our throats. We see what’s going on and most of us don’t like it. I still continue to interact more personally with people on snap.
1.How does data support the decisions Snapchat makes?
Data greatly supports what decisions Snapchat decides to make.They have already come to a clear point that they want to get more information about their users. Data is what helps increase monetization, something they are falling behind in to one of their competitors, Facebook. By acquiring user data, they will be able to generate a proper ad list that will appeal to the user. Thus, benefitting themselves and the ads they promote.
2.What data are you contributing daily by using snapchat?
Whenever I’m bored, or just plain procrastinating, i tend to visit the Video-Stories and scroll through each and everyone and sometimes subscribe to one. However, an ad will occasionally pop up, and I skip them all them. Not because I find them to be a nuisance, but rather, they do not interest me. I feel like i contribute to the data Snapchat desires from its users.
3.Lots of people consider business to be a numbers game—revenues, active monthly users, and so on. But, in fact, business is so much more about people. How does that theme play out in this story? How are people and personalities behind the success of companies like Snapchat?
As stated before, data plays a major role in how successful a form of Social Media can be. People gravitate towards things that make them comfortable, and also what feed to their own personal interests and preferences. While SnapChat does not have the data component completely down, it does offer a variety of entertainment that appeals to all its users. Another large component is that celebrities, or well known public figures, also use the app. Thus, generating more usage by bringing in their fans and people who follow them. Such an element can also be found in Twitter and Facebook.
4.The story makes the point that Snapchat has “kept innovating to maintain its competitiveness.” What does this mean? In what ways is the company innovating? Why is innovation so critical to success for most businesses, but especially within an industry involving social media apps?
Innovation is critical for most Social Media app businesses because people want to be entertained. If an app stays stagnant, and does not offer new services or forms of entertainment, its users will eventually become bored and find something new, something that is continuously pumping out new material. Something very innovative that SnapChat introduced was the easy use of a user’s Story. Stories are short 10-seconds clips of media that eventually disappear in the next 24 hours from its upload. While you may find these same features on other forms of social media, SnapChat has an easy, quick process with straight uploading of moments users want to share.
5.As a user of Snapchat, how do you feel about your own role in the growth and/or demise of this business? Take the Taco Bell-sponsored filter, for example. Did you ever consider the advertising aspect of this fun feature? And what about the claim that Instagram, now owned by Facebook, will just copy Snapchat’s features and teens will leave one app for the other? Do you agree?
I would like to think I am contributing to the growth of SnapChat. I have before thought of sponsored ads before, and I think it would be okay for more companies to also join the SnapChat community too. Concerning advertising, of course this filter could work just as well as a commercial could and incite a consumer to take some sort of action. I do not think that everyone will leave SnapChat for Instagram. I personally find Snapchat to be more comfortable, and super easy to use. People like minimal effort after all.
The data speaks about how not only the younger age groups like this app but it also what the likes and dislikes of the users are which affect the filters. The filters used most often. I think the biggest reason that this company has thrived is because they look at what the users want. A huge attraction on this app are all of the filters. The daily use of the different filters determine how long they stay or not. There are many updates that snapchat has made throughout its time. There are many little things like chat options. These updates may not be a big deal, but they keep the users interested and get the usage of the app at an all time high. I believe that I do a good job of showing snapchat what my preference is when it comes to filters because I typically use the same filter. I do not believe that any other app will take over snapchat because people do not like change. Also, snapchat is very convenient.
1.How does data support the decisions Snapchat makes? By keeping up with the user’s data snapchat could innovate and know the user’s personality like for examples the user’s favorite restaurant chains, music, hobbies, and family relations.
2. What data are you contributing daily by using snapchat? We are contributing our daily experience, relationship through various contacts, favorite type of music, and just simply our favorite lenses.
3.Lots of people consider business to be a numbers game—revenues, active monthly users, and so on. But, in fact, business is so much more about people. How does that theme play out in this story? How are people and personalities behind the success of companies like Snapchat? By the creation of lenses the company can decide which next innovation to make or take out. Through fun features people are attracted and based on the active of number you can then create more fun features based on the likelihood of the user’s personality.
4.The story makes the point that Snapchat has “kept innovating to maintain its competitiveness.” What does this mean? In what ways is the company innovating? Why is innovation so critical to success for most businesses, but especially within an industry involving social media apps? Snapchat has kept improving as a social network to create better ways for the user to contact people or “social media”. The company is innovating through video calls, fun features such as lenses, etc. Innovation is important because it keeps the users attracted, it creates the value of outsides world through news and the user’s own world from their snap stories.
5.As a user of Snapchat, how do you feel about your own role in the growth and/or demise of this business? Take the Taco Bell-sponsored filter, for example. Did you ever consider the advertising aspect of this fun feature? And what about the claim that Instagram, now owned by Facebook, will just copy Snapchat’s features and teens will leave one app for the other? Do you agree? I think as a user of snapchat I have help the growth of the business, it lets me update my daily life and keep in contact with friends and family. I feel as though the advertising through lenses is a great idea, it creates growth through both business and what better way to advertise than make it fun. I disagree, instagram and facebook will lack originally just because they copy doesn’t mean it will be any better, they need to find other innovations to keep in competition.
1.How does data support the decisions Snapchat makes?
The data snapchat get from us helps them make the decisions on what they are going to add next to snapchat. It’s going to provide them with better options to add on to the app. The more things on the app the more people are attracted to it.
2. What data are you contributing daily by using snapchat?
The data I am contributing is letting them use my face. Also they are providing us with stories from around the world. Like with famous people and big events that’s taking place.The more we post our personal life the more ideas they are collecting.
3.Lots of people consider business to be a numbers game—revenues, active monthly users, and so on. But, in fact, business is so much more about people. How does that theme play out in this story? How are people and personalities behind the success of companies like Snapchat?
Snapchat it making itself up to one of the top used apps. It started with very little stuff on to now having all types of filters etc. Snapchat is doing anything they can to make sure users enjoy the app.The ideas that are added to the app is working because now all you see is people on Snapchat. They going to keep doing whatever they doing to keep it successful.
4.The story makes the point that Snapchat has “kept innovating to maintain its competitiveness.” What does this mean? In what ways is the company innovating? Why is innovation so critical to success for most businesses, but especially within an industry involving social media apps?
It means that snapchat is going to keep adding new material to the app to keep it popular. The more money they add into the app the better the features and likes it will have. Keeping new stuff so people won’t think the app will get boring. Since now other apps are trying to be like them they have to keep updating it to make it unique.
5.As a user of Snapchat, how do you feel about your own role in the growth and/or demise of this business? Take the Taco Bell-sponsored filter, for example. Did you ever consider the advertising aspect of this fun feature? And what about the claim that Instagram, now owned by Facebook, will just copy Snapchat’s features and teens will leave one app for the other? Do you agree?
As being a snapchat I think I am being a great user by posting pictures of myself and the music I listen to. I do thinks it neat to see other companies have their filter on snapchat because it makes us want to go to that place. I think instagram will end up copying snapchat because they already have the video things and make where others can view it. I do agree because anything is possible with technology these days.
Snapchat, one of the top and most popular social media apps of today, takes advantage of specific collected data based upon its followers and supporters. They use them, me included, to evolve and change constantly along with the society the surrounds it. When Snapchat was first released it was at more of a basic level. It introduced the basic concept of why it was made. Since then it was taken advantage of its growing audience to help conform it into the app it has become. For example, by adding filters it encouraged people to take more ‘selfies’ and be more interactive in a fun, more modern way. Another tactic they’ve added was ‘awards’ or concepts, in forms of ‘emojis’, that would only be unlocked once a specific goal was reached, encouraging the idea of using the different features offered through the app more often. Another idea to encourage their growing audience that was implemented was something called ‘streaks’ which can be shown on someone’s snapchat once they have snapchatted a specific added ‘friend’ on the app consecutively for a few days, this enables more people to use and snapchat others daily in order to let the ‘streak’ remain. Snapchat allows you and your fellow snapchat friends to not only directly message one another through temporary pictures, videos, and messages but also with everyone (that you allow of course) through the concept titled ‘story’ or ‘your story’. This opens up your own privacy window to the rest of your friends, allowing them to view and even comment on what you’ve decided to post. Most ideas behind other social media apps or accounts are similar in the way of constantly evolving by conforming to and by pleasing the audience, while also trying to compete with others in order to be the most popular. Using innovation to your advantage by constantly improving helps a social media app maintain its popularity and users. It’s not considered boring and old if there is something new to constantly rave about to and with the rest of the world. The social media industry has no choice but to be competitive because they crave popularity among its users and would be seen as just another app if not ranked. Personally, I find being apart of the constant rave over a popular social media app exciting and I’m glad to be evolving along side of Snapchat.
Data greatly supports what decisions Snapchat decides to make.They have already come to a clear point that they want to get more information about their users. Data is what helps increase monetization, something they are falling behind in to one of their competitors
To snapchat we contribute our daily lives, experiences , and other things. this allows snapcaht to create filter that the user enjoy.
The people and different personalities behind snapchat help the users because they are ordinary people.
This means that even though the company tactics may not seem wise because they are not producing much revenue like Facebook they are expanding and being use more and more, passing other apps.
As being a snapchat I think I am being a great user. I do think its neat to see other companies have their filter on snapchat because it makes us want to go to that place. I think instagram will end up copying snapchat because they already have the video things and make where others can view it. I do agree because anything is possible with technology these days.
1.) The data helps Snapchat helps them decide what filters, sponsors, and ads to make available on the app
2.) The data I would make up into Snapchat would be a daily user
3.) It plays out by seeing what the user posted and tries to relate to that certain user. People and personalities are the key to success because they have to see how people are to relate to them and see what they post.
4.) It means it continues to make changes and improvements on Snapchat so people will stay on it and tell others about it. It is important because more and more people to the app and everybody is different.
5.) I don’t really feel a certain feeling towards it. I just thought about how much money they would be making off of being on Snapchat. Instagram has app it’s type of story to it. But i don’t think that people will stop using Snapchat because it is so far gone that it has way more features then Instagram does.
1.How does data support the decisions Snapchat makes?
Snapchat looks at both the likes/dislikes and more demographics of the Snapchat user. Snapchat is also incorporating different ideas, almost like Facebook, including stories, different filters, lenses, and geofilters. Snapchat is becoming its own little Facebook, but developing much faster and its users are growing exponentially.
2. What data are you contributing daily by using snapchat?
You are adding facial recognition technology that you provide, what you are interested in by subscribing to certain articles and news under the Discover page is also very helpful in determining who you are. One important thing you provide by using snapchat is what you talk about. Since snapchat programs to collect textual data on users to see how we think and talk. Even things like the photos we store and music we listen to and upload. Those all add to the data we are basically providing snapchat.
3.Lots of people consider business to be a numbers game—revenues, active monthly users, and so on. But, in fact, business is so much more about people. How does that theme play out in this story? How are people and personalities behind the success of companies like Snapchat?
Snapchat is making itself up to one of the top used apps. It started with very little to now having all types of filters, deigns, methods of communicating within the app, etc. Snapchat is doing anything they can to make sure the users enjoy their app.The ideas that are added to the app is working because all you see is people on Snapchat. They going to keep doing whatever they are doing just to keep it successful.
4.The story makes the point that Snapchat has “kept innovating to maintain its competitiveness.” What does this mean? In what ways is the company innovating? Why is innovation so critical to success for most businesses, but especially within an industry involving social media apps?
Even though the company strategies may not seem wise to use because they are not producing more revenue like Facebook, they are expanding and being used more and more, passing other apps like Facebook, Instagram, Twitter, etc.
5.As a user of Snapchat, how do you feel about your own role in the growth and/or demise of this business? Take the Taco Bell-sponsored filter, for example. Did you ever consider the advertising aspect of this fun feature? And what about the claim that Instagram, now owned by Facebook, will just copy Snapchat’s features and teens will leave one app for the other? Do you agree?
I feel that we, as users, are contributing to maintaining snapchat as a trendy and popular app. We are the main ones who promote it, use it, and basically test out new items. I don’t like using the filter because they are weird and a new filter is boring and looks completely weird, but it is sometimes fun to send to friends. I don’t agree with that claim. It’s just copying another app for competitiveness and they can’t be original and come up with newer initiatives. I feel that users will actually dislike Instagram more and a switch to Snapchat because they are trying so hard to become more like Snapchat. Eventually Snapchat will catch up to their tactic and and make something even better and harder for anyone to imitate. I will stick to Snapchat even if Instagram does that, even though Instagram has already started.
1. Snapchat is hardly able to use data to make their decisions because they don’t have ways to collect user data unlike Facebook and Twitter. So, this becomes an issue for them and also becomes a challenge for them to be able to increase user engagement.
2. I’m contributing to their data daily by posting pictures and videos on my Story and also by snapchatting other users. I do both by using their Geofilters and lense features.
3. People and their personalities are what help companies like snapchat grow because there are many different types of people that use Snapchat on a daily basis, all with different personalities. All of the various features that Snapchat offers are all applicable to the different personalities of different people so that helps increase the daily usage of said users.
4. Snapchat keeps innovating by adding different features frequently such as new filters for their users to use over heir pictures, new ways to send users chats, features to help users find users that they may now by adding a “quick add” feature, new methods to watch peoples stories, the list goes on and on.
5. I contribute to the growth of snapchat by using it daily and using the new features that they add. I believe that the advertising of companies on snapchat can be usefu and beneficial for both companies. In my opinion, i personally dont use “Instagram Stories” seeing as its basically a replica of snapchat and i personally prefer to just use snapchat because it’s what im used to and what i like best. Although, some people do rather use instagram stories over snapchat.
I personally love using Snapchat, and other social media apps. They are always changing. You’re going to have to be competitive with your rivals if you want someone to download your app. So you may have to make changes to be the best. The company may be innovating to be more modern, and may update their app. Innovation is very critical especially in social media because so many teens use it, and they get bored easily. When you update your app and innovate it to something creative, it may become the “top app”. I remember when Instagram came out with “stories” just like Snapchat. Many people kept saying that Instagram was copying Snapchat. Then, Instagram came out with their own filters just like Snapchat did. Then I heard many people saying “Instagram is trying to be just like Snapchat”. I thought that was funny. I guess Instagram was trying to not let Snapchat get “too famous” for all their creative sucess.
I think Snapchat is popular because of its setting. There are tons of applications; however, snapchat is one of the most personalized apps. The company does not just want to create an app, but to surpass other apps by making it more lively.