Snapchat continues to seek ideas for monetizing the app
According to a report published on Tuesday, Snapchat is in talks with media companies, content providers and news organizations about a service to be called Snapchat Discovery. All of the media and advertisements involved would be shown to Snapchat subscribers, and would disappear in the same manner as personal messages do. According to one source, a dozen media players have shown interest in the service, which is scheduled to debut this November. While there have been companies like Taco Bell that use Snapchat for promotions, Snapchat Discovery would be the first service that would require corporations to pay Snapchat to promote their products inside the app. Other messaging apps sell stickers of famous characters, or offer users the chance to pay to play video games inside their app. These solutions don't fit the Snapchat business model, which includes the disappearing content..
Turning down the Google bid, and a rumored $3 billion bid from Facebook, Snapchat has decided to raise money the old-fashioned way, through financing rounds conducted at higher and higher valuations. Recently, an investment in the company at a valuation of $10 billion was rejected by an investor.
According to Snapchat, 27 million iOS and Android flavored smartphone users employed Snapchat in June. That was up from 11 million such users, the year before. Whether the demographics are what advertisers are craving for is another matter. Half of Snapchat's subscribers are between 13 years of age and 17. That might be a tad too young for most corporations. The average Snapchat user checks his account 14 times a day. 500 million "snaps," or disappearing messages, are sent daily.
Snapchat is dying to show that it didn't make a mistake in turning down $3 billion or $4 billion for the company. But if this proof doesn't come soon in the form of a strong monetizing scheme, texts and video might not be the only thing about Snapchat that disappears.
1. 0xFFFF (Posts: 2962; Member since: 16 Apr 2014)
All they need to do is make a deal with a prominent malware maker and hold all their users for ransom -- otherwise their photos get published. That would keep them going for a long time.
4. microsoftnokiawin (Posts: 966; Member since: 30 Mar 2012)
secretly change their term and conditions !
2. rodneyej1 (Posts: 3537; Member since: 06 Jul 2013)
Have MS pay you to make one for WP... Lol!
3. james1 (Posts: 79; Member since: 16 Mar 2013)
The only way they would do it is by putting the ad before the actual snap so the user is forced to view it. If they did that it would be annoying and might even drive out customers since instgram's own app bolt is arriving that is identical to snapchat. At least for now lets hope its not like the crap twitter is doing by sneaking those ads tweet in your timeline.