Lei Feng network press: The author of this article Jia Jiajun, the article mainly describes the extent of Snapchat's popularity, and where the advantages, and finally from the user activity and advertisers from the perspective of the valuation of 25 billion US dollars is reliable.
The concept of “burning after reading†is also considered a fire in China. The past, micron, bang, and second beat applications have all been touched by this concept. However, in the end, no one can actually become popular. As the brightest star in the industry, Snapchat has left other participants farther and farther, and even recently planned to go public.
After the news that Snapchat was about to be listed leaked, the media around the world were boiling, and it was even more attractive that it had a valuation of US$25 billion. It is reported that Snapchat will be officially listed as early as next March. Once the news is true, the long-awaited capital market will usher in a powerful "deep water bomb".
The Snapchat, which was founded on the concept of “After Burning,†was born in 2011. The founders were two students at Stanford University, Evan Spiegel and Bobby Murphy. At the beginning, this application is only a platform for users to publish their own selfies. The special feature is that the photos posted by users will disappear after a period of time .
After its official listing, Snapchat quickly captured the hearts of many young users. Since this exchange platform does not easily leave chat trails, young users are willing to post new and bold photos and videos on it. This short-term, communicative approach completely cuts into the deep social needs of young people. Soon the number of users of Snapchat ushered in the blowout period.
As of May 2012, Snapchat users have published 25 photos per second. The data indicates that as of November 28, 2012, Snapchat’s iOS client sent up to 20 million photos per day, and the total number of photos posted by users on Snapchat exceeded 1 billion.
In 2014, Snapchat’s monthly subscriber base has exceeded 100 million. At the same time, Snapchat continues to innovate the content and functionality of the platform. In addition to the newly added feature of video chat, Snapchat also added a “Discover†channel where professional news and entertainment agencies can post video information. In addition, Snapchat encourages users to tell their stories through a series of pictures and videos that can be viewed by users' friends within 24 hours.
Today, Snapchat has about 235 million monthly users. These users publish 6 billion videos a day, and they watch more than 10 billion videos a day on the platform.
With the blowout period, Snapchat's valuation in the capital market is also rising.
In January 2012, Snapchat received $485,000 in seed round funding from Lightspeed Ventures.
In February 2013, Snapchat reaped a $13.5 million Series A round of financing with a valuation of $60 million to $70 million. In June of the same year, Snapchat received another US$100 million in financing and its valuation rose to US$500 million.
In the same month, Snapchat completed a $80 million Series B round of financing and its valuation has reached as much as $800 million.
In January 2015, Snapchat completed a financing amount of up to 486 million U.S. dollars, which is enough to rank among the top ten most profitable US deals. In May of the same year, Alibaba and two hedge funds jointly launched a $537 million investment in Snapchat. Contrary to the media's expectation, in this investment, investors have only obtained ordinary shares, which may be enough to show that the capital market has been sought after by this widely popular social application for young people.
In March 2016, Snapchat received $175 million in financing from Fidelity Investments, which had a valuation of $16 billion at the time.
In the capital market, hot is the absolute truth?When looking at the rapidly changing Internet industry, people can easily equate "concept" with "bubble." There is no shortage of new products that can quickly become popular in this market, but there are very few products that can keep going. The Snapchat that once rejected Facebook and Google’s takeover bid apparently did not intend to become that fleeting fleeting fireworks. It firmly believes that it can become a rising sun.
The confidence of Snapchat comes mainly from several aspects:
1. Advantageous user groups
Snapchat has a young user group that is well enough for all social platforms and users are very active. According to agency surveys, 70% of young people aged 18 to 24 in the United States are Snapchat users. We can understand this: Snapchat captures an entire generation of users!
Because of this, Snapchat can arguably position itself as the best platform for brands to reach the young market. For example, on the popular Stories page, users can tell their story through a series of pictures or videos. Users can send content to friends or public display, which will be retained for 24 hours.
This channel soon became the "sweet spot" in the eyes of advertisers. Brands and manufacturers who feared missing out on the young market were playing with Snapchat's idea. They will work hard to create some interesting video ads and put them on the "Story" channel to attract young people's attention.
Forbes once asserted that Snapchat is likely to become YouTube in the mobile Internet era. In fact, Snapchat’s ad campaigns are constantly advocating the concept of “always on the goâ€. This undoubtedly also meets the core characteristics of young people.
Snapchat does not target ads to specific groups of people. Instead, it places all ads on the "Story" channel. In addition, users can choose to see or not see advertisements, and all advertisements will automatically disappear after 24 hours. The idea of ​​this platform is that high-quality advertisements should be interesting and story-telling, and the behavior of users viewing advertisements should be spontaneous, so as to better promote the communication and interaction between brands and users.
2. Attractive features and content
In addition to the post-reading and story channels, Snapchat also hopes to be the first platform for users to access information. With the rise of social media, the habit of users accessing information has changed, and they are more inclined to access and share information on social platforms.
Watching social networking giants such as Facebook and Twitter are racing against each other to build their own "media camps," and Snapchat, with its high-quality user resources, naturally falls behind.
In order to facilitate user access to information, Snapchat specifically launched the “Discover†channel and reached cooperation with media brands including Mashable, Vice, Fusion, The Verge, and CNN.
On the platform provided by Snapchat, media can interact with users after 90 or even 00. In order to encourage content innovation, Snapchat also gave the media the right to edit and control content.
In addition, Snapchat has also worked hard to pay for features. Different from the application of all- inclusive payment functions such as domestic Alipay and WeChat, Snapchat's payment function is mainly for small transfers and payments. The trading technology of this function mainly relies on the payment platform Square.
To make the app even more fun, Snapchat also added many interesting live filters to the app. This application can change the face according to the user's face shape, making the chat process more interesting.
3. The creative profit model
In order to ensure profitability, Snapchat has spent a lot of thought. For a long time, Snapchat has been sparing no effort to develop the ability to realize the filter function. Individuals and businesses can pay Snapchat a certain amount of money to purchase filters with promotional effects.
The movie “X-Men: Apocalypse†purchased a filter service on Snapchat during the release period. Snapchat users spontaneously use beautifully-made filters, and businesses can also achieve promotional results.
In addition, Snapchat has also developed a filter service based on geographical location. The user can purchase a filter service for a specific location, and only friends who are in the corresponding location can receive the content sent by the user. Of course, the content for a specific location also has the feature of “being burned after readingâ€.
In terms of media content, Snapchat’s profit mainly relies on the “Discovery†channel. Snapchat launched the "Exploration" channel in January 2015. The media can publish its own content on short-video. Snapchat did not disclose its profits from the "Exploration" channel, but it goes without saying that the content release will be the trump card for its subsequent profit growth.
The full-fledged Snapchat will reward investors with amazing profit growth. At an investor conference, Snapchat’s internal staff revealed that the company’s revenue in 2016 was between US$250 million and US$350 million, and its annual revenue value in 2015 was only US$50 million.
Snapchat even boldly predicted that the company's annual revenue in 2017 will further rise to the level of 50 to 1 billion US dollars. It took Facebook 6 years to bring its annual revenue above the 1 billion mark, and Twitter spent 8 years.
After the listing news leaked, Snapchat's $25 billion valuation left a question mark in the minds of many people: Is this company worth so much?
Facebook went public in 2012 when the company's valuation was 19 times the projected revenue for the following year, and the $25 billion valuation has reached more than 25 times of Snapchat's estimated 2017 revenue. If you consider from this aspect, Snapchat's valuation is not cheap.
However, Snapchat’s daily active users have reached 150 million. Most of them are young users. This shows that the popularity of this product has exceeded that of Twitter.
At present, Twitter's valuation is about 17 billion US dollars, and the length has been minimal. Considering Snapchat's high growth and high quality user base, the $25 billion valuation does not seem crazy.
Snapchat has become the best platform for advertisers and young consumers. Although the revenue generated by the advertising business is not yet sufficient to compete with Twitter (advanced advertising revenue of US$2.2 billion in the previous year), the number and activeness of Snapchat users are still rising rapidly. As long as Snapchat continues to attract users, it is believed that the revenue generated by its advertising business will also burst.
As we have already said, most of Snapchat's audience is young users. It captures a whole generation of users. If Snapchat can continue to grow at an optimistic rate, the $25 billion valuation is simply not high; but if growth stagnates, it will fall into the trouble that Twitter has suffered over the past few years.
Before the dust settled, we could not consider whether the $25 billion valuation was reasonable for Snapchat and could only be measured and regulated by the market.
But from a subjective standpoint, I believe that many people are still willing to see this application go further. After all, in the application of the main concept of "After Reading and Burning," Snapchat has become a star in solo dance in the air.
Lei Fengnet (search "Lei Feng Net" public concern) Note: The author of this article Yan Jiajun, starting on the headlines, micro-signal: 50 degrees silicon - the brunch for the upper elite reading, without the direct prohibition of reprint (not marked everywhere) . If you need to reprint, please contact micro-signal t2ipo001 and indicate your intention.
Yellow Led Display,0.36 Inch Yellow Led Display,3 Digits Green Led Display,3 Digits Led Segment Display
Wuxi Ark Technology Electronic Co.,Ltd. , https://www.arkledcn.com