When Snapchat first came out, most tech experts and users alike thought this would be a fun fad that would last a while then die away. They couldn’t be further from the truth. For those of you who are familiar with the product, Snapchat allows users to take pictures and videos, and then send them to friends. After a few seconds, the pictures disappear and will be gone forever.
The company launched in September of 2011 and grows with more users and more pictures every day. There are over 100 million users sending over 350 million pictures and videos per day. These numbers are staggering and have helped Snapchat secure an incredibly high value on their company. Snapchat has been rounding up new investments that are putting their value at over 3.8 billion dollars. The most crazy part of this valuation is that Snapchat has made no revenue up to this point. That definitely doesn’t make it Snapchat a bust. Mark Zuckerberg has supposedly offered to buy Snapchat for 1 billion dollars but was declined by the company’s owners. The real question now is how is Snapchat going to make its revenue to get to that $3.8 billion.
Snapchat recently released a new update that allowed people to share their 24 hour story on Snapchat. This could be the first step in Snapchat giving advertisers something they can use to share their media. Companies could put up coupons that last for 24 hours that would show up on people’s list of pictures. They are also looking at marketing this feature to musical artists. The artists can show music in 24 hours, and then with a double click, users would be able to purchase the music.
Snapchat has become anything but a fad over the last couple years and is becoming a major player in the social media world. It will be incredibly interesting to see if Snapchat will be able to capitalize on their large user base to really grow their 3.8 billion dollar empire.