I'm a professional photographer and even when I had a medium audience on Snapchat (1000-3000 views/snap), I switched to Instagram stories.
For content creators Snapchat is not good at all. The discoverability problem they have is a serious issue for me.
Snapchat Seeks to Raise as Much as $4B in IPO
31–40 of 261 posts
Re: Snapchat Seeks to Raise as Much as $4B in IPO
#32Earlier quoted context omitted.
Sure, but what precisely are they planning to spend $4B on?
Considering Snapchat revealed Spectacles, which in my mind was an unexpected hardware development, they could use funding for side projects and expansion. Hopefully, they don't become like Twitter and waste all that money for so little gain.
I'm pretty sure that they will write these off evetually. To me they feel very similar to Google glass insofar the customer bases being somewhat similar, maybe spectacles' being somewhat younger.
Re: Snapchat Seeks to Raise as Much as $4B in IPO
#33Didn't a company offer to buy them for 4B a few years back?
Facebook, for $3 bn; Google, for $4 bn. Both offers were declined.
Re: Snapchat Seeks to Raise as Much as $4B in IPO
#34Earlier quoted context omitted.
With enough ads user engagement also goes down. If Snapchat pushes it too far it will drive users off the platform and onto the next "cool" thing.
I think that to some extent decrease in engagement due to ads is a constant. Some engagements are larger than others and can handle that decrease.
As it stands now, you need to actively choose to play an ad, and that's how the impression is made. This is why Snapchat commands a higher CPM, because the user is actively in front of the screen.
However, I never look at the ads and instead stick to my friend's user generated content. Once ads are forced on users, they will jump ship.
Re: Snapchat Seeks to Raise as Much as $4B in IPO
#35When a company like Uber is raising insane amounts of money I think to myself - "ok, they're working on vehicle automation and other ambitious projects, it makes sense". When a company like snapchat is looking for 4B in addition to existing funding I am left completely dumbfounded. Can someone please explain why they would need this much cash?
The engineering community is sleeping on Snapchat, but shouldn't be. My life is AR. I'm the CEO for an AR company, I speak write and live and breathe all things AR. Snapchat is poised to be the most important AR company around for several reasons. 1. They have a MASSIVE userbase that is comfortable with sharing their lives 2. That userbase has already shown an interest in AR - and yes whether you like it or not their…
And how will they make money? Selling ads in the AR world?
Re: Snapchat Seeks to Raise as Much as $4B in IPO
#36Earlier quoted context omitted.
They have captured an important segment of the market (12-2x years olds). I also think that people In this age group find it a ton more engaging than the alternatives.
Sure, but what precisely are they planning to spend $4B on?
They don't have to spend it. Just having that warchest is of great consequence.
Re: Snapchat Seeks to Raise as Much as $4B in IPO
#37I have yet to speak with anyone who thinks Snapchat's valuation is realistic and that their business model will sustain them. When I see this I just think of Twitter all over again. I would love to hear arguments supporting Snapchat though.
This is my takeaway from Kleiner Perkins Caufield & Byers 2016 internet trends presentation. http://www.kpcb.com/internet-trends
Some I agree with, some I think is hyperbole.
Snapchat's Ads are effective. More effective than anything else on the internet or other apps. They are authentic, entertaining, in-context and brief. They follow the 3Vs: Vertical (Made for Mobiles) / Video (Great Way to Tell Story) / Viewing (Always Full Screen).
Snapchat's average monthly use per visitor is way above other social networks for the younger generation. And it is growing incredibly fast.
Advertisers are able to integrate deeply into the app in various unique and interesting ways.
Snap chat is the leader a new wave of advertising, in the way Facebook did a few years ago, and google before that.
Re: Snapchat Seeks to Raise as Much as $4B in IPO
#38Earlier quoted context omitted.
The engineering community is sleeping on Snapchat, but shouldn't be. My life is AR. I'm the CEO for an AR company, I speak write and live and breathe all things AR. Snapchat is poised to be the most important AR company around for several reasons. 1. They have a MASSIVE userbase that is comfortable with sharing their lives 2. That userbase has already shown an interest in AR - and yes whether you like it or not their…
And how will they make money? Selling ads in the AR world?
How do facebook and Google make money? Selling ads in social network and search land.
Having an enormous, religiously active user base has proven time and time again to be a huge cash cow.
Re: Snapchat Seeks to Raise as Much as $4B in IPO
#39I have yet to speak with anyone who thinks Snapchat's valuation is realistic and that their business model will sustain them. When I see this I just think of Twitter all over again. I would love to hear arguments supporting Snapchat though.
While we're on the subject of realistic company valuations, what do you think of FB?
Re: Snapchat Seeks to Raise as Much as $4B in IPO
#40I'm surprised (rather, disappointed) that the article doesn't make any comparisons to Facebook's IPO. For today's 14-to-25-year-olds, Snapchat is the new Facebook, in terms of user engagement, market penetration, mindshare -- so it stands to reason in terms of valuation it would be too.
There are some important differences, of course. Facebook owns multiple properties that mount competition to Snap Inc: Instagram, Messenger, Whatsapp, the original Facebook; Snapchat subsumes all these usecases in a single app that you'd be hard-pressed not to find on a teen's phone today. And it does so by making it optional to curate a permanent, indexable, discoverable, idealized public identity.
To many, that's strictly better than anything Facebook has put out -- a company that nonetheless commanded a high valuation, performed an IPO (albeit rocky), and now posts a strong profit.