Snapchat continues to seek ideas for monetizing the app

Snapchat continues to seek ideas for monetizing the app
We all know what Snapchat does, taking video and text messages, and doing the old Mission Impossible self-destructing routine to destroy them after ten seconds. Snapchat has been the subject of some pretty big, rumored bids. So far, it has turned them all down, including a rumored $4 billion offer from Google. One problem that a suitor for Snapchat might have, is trying to figure out how to make back the money spent for the messaging app. So far, there have been some half-assed attempts at monetizing Snapchat. That includes the tepid response to living timeline "Our Story."

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.

source: WSJ

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4 Comments

1. 0xFFFF

Posts: 3806; Member since: Apr 16, 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: 1268; Member since: Mar 30, 2012

secretly change their term and conditions !

2. rodneyej1

Posts: 3576; Member since: Jul 06, 2013

Have MS pay you to make one for WP... Lol!

3. james1

Posts: 97; Member since: Mar 16, 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.

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