Post on 20-Jan-2017
What is Snapchat?
A photo- and video messaging app launched in 2011 with a unique twist: photos and videos only last a brief amount of time before they disappear forever, making the app ephemeral in nature, though you can take a screenshot of snaps to save them in picture form.
How it works.
The app's main screen is your camera view. Once down-loaded, the app will always open and show the camera view
1
2The top left-hand corner has a flash
icon for toggling the camera's flash
The center area is your camera view
The top-right corner has a camera button for toggling the camera between front- and rear-facing mode
3On the bottom of the camera view there is a big round camera button at center for taking photos
and videos (a.k.a. Snaps). Hold the camera button down to record a video with sound, or tap the
camera button to take a picture.
The square icon at bottom left displays how many unread snaps are waiting for you. Tap it or swipe from left to read your snaps, directly message friends, or search.
4
The bottom right corner will show a three-line icon (or "+" if you have stories from followers available). You can tap it or swipe from right when you want to view stories or discover content from publishers like ESPN, Food Network, etc.
5FeaturesAdding Contacts: Swipe down on the main screen to add contacts, or tap the Snapchat logo at the top.
Making Snaps: Tap the large camera button to take a snap, or hold down to record a video.
Sending Snaps: Tap the arrow-shaped icon at bottom right to send your snap to a friend.
Viewing Snapbacks: Select the square/numbered icon to see a feed of all sent snaps and replies.
Sending Stories: Tap the story icon from the preview screen. Followers will be able to view it an unlimited times in one day.
Viewing Stories: Tap the three-line icon on the camera screen. There will be a Stories screen from contacts.
Viewing Scores: Scores are the sum of sent and received chats which appears next to the name under the Snapchat logo.
Chatting with Friends: Swipe from left on the camera screen to access the chat feature.
Here: Live video chat with friends by pressing the blue camera button at right in any message thread.
Sending Money: Snapchat partnered with Square to let you use your debit card to pat for goods of send money to friends.
Applying Lenses: Press and hold on your face during a selfie to activate a new feature called Lenses. It includes facial recognition software that can distort your expression and apply various effects to your face.
Extra Replays: Snapchat added a Replay feature allowing you to briefly relive snaps one more time.
Snapchat Memories: Save snaps to Memories - camera roll/collection, where you can organize, edit, search, lock, and share snaps.
Snapshot Discover: Find stories from specific editorial teams. Swipe from left on the camera screen and tap the Discover circle icon at top-right. Source: Pocket-lint, Crunchbase
Timeline
2011 2012 2013 2014 2015 2016
7/11Creation: Snapchat launched under the name Picaboo, as an iOS app
3-4/12Funding: Lightspeed Ventures invests $485,000 in the company
10/29/12Product:
Launches an Android
app
12/14/12Product: Releases video
sharing and begins prototyping monetization
features
2/21/13Product: Launches video sharing on its Android app
6/22/16Funding: Raises $80 million Series B at a valuation of about $800 million. Investors include Institutional Venture Partners, Benchmark Capital, Lightspeed Ventures, General Catalyst Partners and SV Angel
12/12/12Funding:
Raises north of $10 million at a
$70 million valuation. Funders include Benchmar
k Capital
9/9/13Product: Releases
Snapchat Micro
10/3/13Product: Launches Snapchat Stories
11/13/13Potential Acquisition:
Spurns a $3 billion acquisition offer from
12/11/13Funding: Raises $50 million in Series C funding from Coatue Management
11/20/13Product: Allows users to
replay one snap a day, sacrificing some of its
ephemerality
5/1/14Product: Adds ephemeral text chat and video calling
6/17/14Product: Launches collaborative timelines based on events
8/29/14Product: Adds a "Live"
section that allows people to follow
events live
9/4/14Product: Begins using push notifications for Snapchat Stories
10/17/14Product/Monetization:
Announces that users will receive ads from brands
11/17/14Product: Announces Snapcash, a tool to send each other money easily through the app
12/16/14Product/Acquisitions
by Snapchat: Leaked emails from Sony Pictures indicate a
music feature, acquired QR scan company scan.me for $50 million,
and acquired Vergence Eyeglass Cam for $15 million
12/31/14Funding: Raises $485 million from 23 investors for its Series D round at a valuation of at least $10 billion
1/27/15Product: Launches Discover, a daily feed comprising content from brands like ESPN, CNN, Vice, and Warner Music, National Geographic, Yahoo News, and others
5/26/15Userbase: 100 million currently active users, who send snaps at a rate over 400 million a day & seeing 2 billion video views a day
8/12/15Product: Launches a new mode called Travel Mode in its iOS and Android apps
10/28/15Product: Adds slow-mo, fast-
forward and rewind video filters. Also adds 3D touch
capabilities for iPhone
11/9/15Userbase:
6 billion daily video
views, up from 2
billion in May
11/10/15Financial: Fidelity Investments
marked down valuation by 25%, from $30.72 a share to
$22.91 a share
3/24/16Acquisitions by Snapchat: Acquires Bitstrips, the company that makes bitmojis (personalized emojis)
5/23/16Product: Adds
support for decorating snaps with
200+ stickers
4/28/16Userbase:
Reaches 10 billion daily
video views, up from 6
billion in November
2015
6/3/16Acquisitions by Snapchat: Acquires Seene, a startup working on three-dimensional face scanning (also called the "3D selfie startup")
5/26/16Funding: Reports
latest Series F round ($1.8 billion
in funds raised)
8/2/16Competition: Instagram launches Instagram Stories
7/6/16Product:
Announces Snapchat
Memories
8/15/16Acquisitions by Snapchat: Acquires mobile search app Vurb for $110M
Source: Crunchbase, Techcrunch
Snapchat position in social media space
Piper Jaffray Teen Survey – Social NetworkingSpring 2015
In the investment firm’s semi-annual survey among teens, Snapchat had surpassed Instagram and Twitter as the social media platform of choice.
Google+
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Other
Snapchat
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32
Rest of the WorldEuropeNorth America
120m
0m
20m
40m
60m
80m
100m
Mar Jun Sep
Dec Mar Jun Sep Dec2014 2015
50m59m 65m
74m81m
89m99m
110m
Piper Jaffray Teen Survey – Social NetworkingSpring 2016
In the investment firm’s semi-annual survey among teens, Snapchat had surpassed Instagram and Twitter as the social media platform of choice.
Google+
Tumblr
Other
Snapchat
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2
5
17
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4Twitter (TWTR) was
downgraded to "sell" from "hold" at Evercore due, in
part, to an increased threat of competition from
Snapchat.
Source: Nielsen Media Impact, Reach Duplication, Nielsen Total Media Fusion/GfK MRI Survey of The American Consumer 9/1/2015 – 9/30/2015 (Television, Internet, and Mobile)Survey: PiperJaffray
• Characterization of being a pop-culture icon has propelled Snapchat to become a home screen app for "hundreds of millions of people."
• "Snapchat has a wonderful position, but it's still a competitive market and it still has to prove its business. It's growing very quickly. All signs point to $300 million in revenue this year, which is significant, consistent growth.”
• Snapchat will face competition from the likes of Facebook's (FB) Instagram, which just added a Snapchat-like "Story" feature to its app, and Alphabet's (GOOGL) YouTube.
1+10 billion views
daily, average user views 60 videos per day, 60+ mm
view discover monthly
2On any given day Snapchat
reaches 41% of all 18-34 year-
olds in the United States
3
Daily Active Users Globally: 110mm
users As of December 2015
9
Snapchat is the second-most downloaded app in the US after Facebook Messenger,
according to SurveyMonkey. The data was collected in the first six months of 2016 in the US. Snapchat has about 54.5 million
downloads on Android and iOS combined
5
% of Snapchat daily users that
contribute content (As of 3/25/16): 60%
10Snapchat surpassed Instagram as the social media base of choice among teens, according to Piper Jaffray. In its semi-annual “Taking Stock With Teens” study conducted, Snapchat took 28% of the votes for the most important social network among 6,350 U.S. teens surveyed, who averaged around 17 years of age. That number is up from 19% in the Fall 2015 survey, indicating that the mobile app had surpassed Instagram, which had 27% of the vote this round compared with 33% last fall.
1
Average number of photos shared
on Snapchat every second (As of
1/26/16): 9,000 snaps per second
2
Reported amount of revenue that
Snapchat is expected to
generate in 2016: $300-350mm
3
Reported value of Snapchat (As of
3/7/16): $16billion
adsWhyarebetter
Influencer Marketingoffer compelling third-party marketing opportunities with cultivated audiences
Snap Adsoffer the best in mobile video ads with the choice to add an interactive elementSnap Ads always begin with an up to 10-second vertical, full screen video ad that appears in the context of other Snaps. You can also give Snapchatters the choice to swipe up and see more, just like they do elsewhere on Snapchat.
1 Swiping up reveals extended content like a long form video, article, app install ad, or mobile website. The swipe-up rate for Snap Ads is 5x higher than the average click-through rate on comparable platforms.
2 Discover Ads: The main source of advertising is going to be with the Discover feature on Snapchat. Unlike a Facebook, Google, or even a YouTube ad, these video ads fill the entire screen with vivid images and full audio, while additionally allowing users to swipe up for more information. This groundbreaking “swipe up” feature changes the game of advertising, essentially turning advertisements into valuable content that can be found across multiple networks on Snapchat.
Sponsored Geofiltersare tiny pieces of art that always make an impression. When Snapchatters in the location(s) of your choice take a Snap, they’ll be able to see your Geofilter and use it to explain where, when, and why they took the Snap.
1 Whether your campaign covers a specific location, a major event, or every mall in America, Geofilters uniquely allow brands to take part in the hundreds of millions of Snaps sent between friends each day on Snapchat.
2 In the US, a single National Sponsored Geofilter typically reaches 40% to 60% of daily Snapchatters.
Sponsored Lensesafter a completely new take on brand activation, offering not just an impression, but “play time” — the time Snapchatters spend playing with the interactive ad you’ve created
1 To activate Lenses, Snapchatters simply press and hold on their faces. Some Lenses include prompts like “raise your eyebrows” to trigger an animation, adding a fun twist to the experience. And when you’re finished playing, it’s easy to send Lenses to a friend or post one to your Story. On average, Snapchatters play with a Sponsored Lens for 20 seconds.
1 Takeover: A Snapchat takeover is when a company allows a Snapchat Influencer to take control of the brand for a set period of time. Effective way for company to build followers and gain brand awareness
2 Promotion: Offer deal in return to watch the brands content on Snapchat
3 Unboxing: Influencers unbox products while snapping the experience to their followers
4 Product Placements: Brands partner with influencers to authentically place their products into their Snapchat Content
Source: Snapchat, AdEspresso, Revolt Agency
Future Plans
1
According to a report from Recode, Joanna Coles, member of Snapchat’s board of directors and editor-in-chief of Cosmopolitan, said that the company is building an “e-commerce platform” so you’ll be able to shop right inside Discover.
According to Clement Xue, Snapchat’s director of revenue operations, the company will roll out behavioural targeting capabilities in the third quarter of 2016. What this means is that it will target you with ads based on your in-app activity (i.e., the accounts you follow, and the Discover media channels you frequently watch)
Snapchat is also partnering with media companies to look at how it can explore new content. The app has partnered with NBC to bring highlights from Olympics 2016 to its platform. According to reports, this the first time ever that NBC has agreed to share videos of the Olympic games with another platform. The daily ‘live videos’ on Snapchat are created using content by NBC. There’s also a Discover channel that has short videos curated by BuzzFeed.
Recent Acquisition Indication: Vurb says it is more than just a search app. It lets users make reservations, find places, book cabs etc., without opening multiple apps and pulls them in a card-like format. Vurb makes suggestions and shows results tailored to what they like, and keeps them updated on trending topics, and is currently available on both Android and iOS. Given the acquisition, there is potential for Snapchat to create an end to end ecosystem for a consumer
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Source: Recode, NBC, Crunchbase