Many people thought that Snap Inc’s signature app Snapchat was dying, or at least that’s what stats proved when users started to desert the app to go to platforms with features similar to what used to be exclusively available on Snapchat. They are now offered by Instagram and Facebook, who reach around 500 million and 1.4 billion daily active users respectively.
However, Snapchat’s revenue was bursting since it finally reached a solid 8.9 million active users during early 2018. It was a bold move when Snap decided to completely redesign the app’s layout, but apparently, it paid off. They still remain far behind from their competitor, but it is a significant success for them since these are their highest numbers since 2016.
The app’s newly designed layout offered a completely different service, being more user-friendly. The simple reinvention consisted of the separation of a friend’s post from media content and news. It is rumored that Snapchat plans to acquire new services from media pages in order to expand its newsfeed.
How did Snapchat manage to turn a profit again?
Snap made public their record of $287 million in the fourth quarter of 2017, which means a solid 72 percent growth which is huge in comparison to past years.
More users mean more money, and, according to CEO Evan Spiegel, most of Snapchat’s users’ growth is due to their highly refined sports newsfeed content.
ESPN earned Snapchat much activity, especially since now they have launched a dedicated version of Sportscenter, which is a highlight in the more mediatic reinvented SnapChat. It is unknown, however, if their plans emerged successfully, but their main aspiration right now is to start expanding and gaining more revenue and users.
Which features made Snapchat succeed?
To earn more users they now included a Maps feature, which is basically an anti-FOMO tool which allows you to see what people near you are posting. For example, if you want to stalk your next door neighbor you may only need to use your new Snapchat tool for this.
Additionally, the new Snapchat is all about change, whether it’s just the layout or the features, Spiegel stated that “their work during 2017 is proof that we aren’t afraid to make big changes for the long-term success of our business”.
Source: Snap