One of the most popular social media apps now is Snapchat. The social media app has seen much growth since its beginning in 2011 after it turned down two attempts from facebook to acquire it.
What Is Snapchat?
Snapchat is a social media app created in 2011 by Evan Speigel and his friends.
Facebook made an initial offer of $3 billion to acquire Snapchat, but the request was rejected. They then tried again in 2016 and were denied again.
Since then, Snapchat has been on a solo journey in the tech world alongside Twitter, refusing to sell to Facebook. Snapchat allows users to send messages that self destructs after some time.
Snapchat users share pictures and short videos, known as snaps, with their friends and followers. Users can also send private messages to people on the app, and these messages get deleted after the recipient has read them and left the message page.
This feature allows users to share confidential media and messages with Snapchat because they know that the message will be deleted within minutes of opening it.
Shared Snaps also get deleted once Is expiration time is up, and no third-party app can recover the snap once it gets deleted from Snapchat.
How Does Snapchat Make Money?
Like almost every social media app in existence, Snapchat also has ways of making money and increasing its revenue.
If you have read our article on how Facebook, now known as Meta, makes its money, you would see that Snapchat also uses a similar means to generate its revenue.
The only difference here is that Snapchat does not make additional money from junior companies as Facebook does. With WhatsApp and Instagram.
Below, we will take a look at the channels used by Snapchat to generate its revenue and make money. Snapchat makes money from the following services its offers to users and businesses. They are:
Ads are the main ways Snapchat makes most of its revenue, just like Facebook and many other social media apps.
Brands and businesses are always looking to place an ad at places where people can see them and react to them. Snapchat makes a lot of money from selling ads alone.
Sponsored Lens Filters
Lens filters have become one of the most popular ways for big brands and companies to advertise on Snapchat.
These brands are allowed to create their lens filters on the app for a fee by Snapchat. The popularity of the sponsored filters also makes a lot of money for Snapchat as different brands continue to create their own. This also serves as a form of advertisement for the brands.
This is a place where you can find curated snaps from CNN, BuzzFeed, and people. Advertisements are also shown between the feed, and these have been monetized.
This means that the Discover feed itself has been monetized to produce revenue.
Snapchat has also partnered with various sports organizations like the NFL, MLB, and the NHL. These sports organizations leverage live stories in sporting events and can reach many people on the Snapchat platform through the levels.
It is now known how much Snapchat makes from these advertisements, but we can guess it is a lot of money.
So now, you have seen how Snapchat makes its money from the app. The tech company makes money through the offering of the various services that have been listed in this article.
However, you should note that a company as big as Snapchat will undoubtedly have other revenue-generating channels that we are not privy to.
I hope you enjoyed this article about how Snapchat makes its money. Make sure to visit the site for more on how Facebook and the other brands make their money even in the corona pandemic era.