Snapchat’s Business Model


         Typically, we see free apps such as Instagram, Facebook, and Twitter selling user information and data to advertisers in order to make money. We frequently see this because it is a popular form of a business model, that enables users to build the database by using the app or service (Meikle, 2016 ). However, Snapchat does not use this business model. Snapchat’s business model follows the advertising framework (Cuofano, 2018). The platform has several different sources of main revenue. This means that Snapchat discreetly incorporates advertising into there platform. A lot of the time Snapchat disguises advertisements so that individuals using this platform do not recognize them as advertisements. Snapchat has done this through the use of filters, sponsored lenses, partnering with publishers and other apps to create new content and revenue for their company. The way in which Snapchat advertises is indirect and often subconscious to users. The business model that Snapchat’s uses is an effective way for their company to make revenue without having to flood their platform and users with ads. 

References: 

Cuofano, G. (2018, November 10). Everything You Need to Know About Snapchat Business Model [Financial Infographic Inside]. Retrieved from https://fourweekmba.com/snapchat-business-model/

Meikle, G. (2016). Social media: Communication, sharing and visibility. Routledge.

Comments

Post a Comment

Popular posts from this blog

Snapchat's Vision and Purpose- the Walkthrough continued

Image
            The recent Snapchat update has caused outrage amongst its users, rendering the company to lose many of them. The reason being: people do not like change; they want snapchat to be simple because that is the perceived outlook of the application. The redesign separated the app into two sides; separating chats and stories from friends from content of media activities (e.g. celebrities and news). Snapchat’s goal was to expand the app appeal to older demographics but nevertheless failed the majority of the users which are of the younger demographic (Bowles, 2018). The New York Times interviewed Snapchat CEO Evan Spiegel who was unapologetic about the update, “we’re thinking a lot about how our products will help us accomplish our mission,” (Bowles, 2018).             The vision of the app revolves around the fact that Snapchat is a camera. It’s a new kind...
Read more