For those who don’t know what Snapchat is, it’s a photo-sharing and messaging app that allows you to take 10-second videos or pictures and send them to friends? It didn’t originally start out as a revenue-generating app at all. Its main purpose was to give people something fun and entertaining to use. However, in the past few years, it’s changed and it is now a revenue-generating app. There are many ways to generate money from it:
In addition, Snapchat can be used as a marketing tool for businesses to promote their products/services, gain exposure and advertising. All of this depends on how you use the app.
Snapchat Revenue and Usage Statistics (2022)
In 2012, Evan Spiegel and Bobby Murphy conceived of a social media application for sharing photos that could disappear shortly after being viewed. They called this concept “disappearing messages”. The prototype was bought by Mark Zuckerberg in early 2013 for $1 Billion, supposedly to prevent Facebook from acquiring it first.
Snapchat started to make money immediately. Revenue is generated from a mix of sources. The first, and most obvious, comes from monthly users who pay for usage of the premium features: removing advertisements and saving stories to be viewed at a later date. Moreover, go ahead and learn this very helpful snapchat tutorial on Tutorialology.
Snapchat also has an ongoing relationship with Google that brings revenue as well as data about Snapchat’s user base to Google’s parent company, Alphabet. When Snapchat is downloaded from Google Play or the App Store, Alphabet receives a portion of revenue for facilitating downloads. Finally, for large purchases of ad space on their platform, companies are charged 20% of the total cost of ads they buy through Snapchat’s self-service tool.
The more people that use the app, the more money Snapchat makes. This is why their current revenue model can remain sustainable even if their total percentage of users who pay for premium features remains low. New revenue sources are bubbling at the surface, too, with advertising expected to generate more income in 2017 than usage-based purchases or Google partnerships.
The number of people actively using Snapchat comes in at 150 million daily active users. This figure is set to increase with the release of new features, such as Snap Maps (which shows where your friends are) and shared experiences (allowing friends to share moments like concerts together, even if they’re far apart geographically).
The average user spends 25-30 minutes per day on the app. In total, that’s about 1.5 trillion seconds of Snapchat usage each year!
The future looks bright for Snapchat. This young company has many ways to generate revenue and security from an increasing user base. Furthermore, they have a large market share in the Photo-Messaging App section of the App Store, receiving more downloads than the next nine most popular apps in this sector combined.
Snapchat Financial Statistics
In December 2012, 25 million photos were being shared on Snapchat per day. As of September 2014, this number has increased to more than 350 million daily images shared by its users. The company’s goal is to create a unique space for people to share intimate moments with friends and family in a way that lets them escape the permanence of digital media.
Snapchat has heavily marketed itself through word-of-mouth, social media platforms like Facebook and Twitter, and various television networks. All without spending a single dollar on traditional forms of advertising (i.e., television advertisements, billboards). Snapchat is now valued at $10 billion dollars. The company has reportedly turned down more than $3 billion dollars in acquisition offers over the past year.
Studies estimate that Snapchat users are opening the application approximately 18 times per day, viewing about 70 videos per day, and saving less than 10% of video content shared with them if they do not share it themselves. Clearly, Snapchat has become a very popular social media application for its users.
Snapchat revenue per year
On January 29th, 2016, Business Insider released their report on the revenue that Snapchat had made in 2015. This article has data that shows the revenue of Snapchat for its first full year as a public company because it went public on March 2nd, 2016. According to their research, the revenue for Snapchat was about $59 million in 2014 and raised up to about $367 million by 2015.
Revenue for 2016 was about $619 million according to Business Insider’s report on its total revenue for the year. The company is growing at a very fast pace and it will continue to grow because of its popularity with youth and adults alike. Snapchat is doing so well that Facebook attempted to buy it for $3 billion in 2013, but was turned down.
“Advertising will remain Snapchat’s bread and butter for years to come. The social app has always been geared toward the younger crowd, and it’s that user base which brands are continually trying to reach.”
Furthermore, eMarketer predicts that by 2022 revenue generated from Snapchat ads will reach $2.81 billion and they’ll account for roughly 11% of their parent company Snap Inc.’s revenue.
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