From experience, I'm always wary of ad sales folks giving "conservative estimates". This assumes a standard CTR that may not apply based on the medium based on user base, actual interaction rates (assuming that Snapchat users are more tech-savvy and less likely to interact with ads), etc. Interesting, but I'd guess fairly misleading from an actual numbers standpoint, considering it's in Namo's best interests to inflate the numbers for PR purposes.
How Snapchat is Missing Out on $1.5M in Revenue Each Day
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Re: How Snapchat is Missing Out on $1.5M in Revenue Each Day
#12For Snapchat, monetizing with 320x50 banners or full-screen interstitials would degrade their user experience and deliver a serious hit to their brand. Not really. They already have Evan Spiegel (Valleywag him) as their CEO. People who care about quality are not going to use it. "A serious hit to [the] brand" is a non-threat. What brand?
And what percentage of Snapchat users do you think have any clue who that is? As an HN reader (so already a tiny minority) I still don't know who he is.
Re: How Snapchat is Missing Out on $1.5M in Revenue Each Day
#13Monetizing a social user base is a great strategy for making millions of dollars. But Snapchat is clearly aiming at billions , or they wouldn't have turned down the multi-billion dollar offers they've already received. Facebook has little to fear from social apps with millions in revenue... so why were they willing to pay so much for a zero-revenue company? And why are VCs ponying up tens of millions in funding for a…
Well, they're not talking about leaving a million on the table, they're talking about leaving a million and a half on the table every single day ("if only they'd use our product!"). The figure they come up with is a half a billion dollars, which is a much larger number than you're giving credit to here.
Re: How Snapchat is Missing Out on $1.5M in Revenue Each Day
#14Monetizing a social user base is a great strategy for making millions of dollars. But Snapchat is clearly aiming at billions , or they wouldn't have turned down the multi-billion dollar offers they've already received. Facebook has little to fear from social apps with millions in revenue... so why were they willing to pay so much for a zero-revenue company? And why are VCs ponying up tens of millions in funding for a…
Well, they're not talking about leaving a million on the table, they're talking about leaving a million and a half on the table every single day ("if only they'd use our product!"). The figure they come up with is a half a billion dollars, which is a much larger number than you're giving credit to here.
As a comparison, that's half of Twitter's current annual revenue.
Re: How Snapchat is Missing Out on $1.5M in Revenue Each Day
#15I have ads in snapchat right now and it isn't very intrusive.
Re: How Snapchat is Missing Out on $1.5M in Revenue Each Day
#16Monetizing a social user base is a great strategy for making millions of dollars. But Snapchat is clearly aiming at billions , or they wouldn't have turned down the multi-billion dollar offers they've already received. Facebook has little to fear from social apps with millions in revenue... so why were they willing to pay so much for a zero-revenue company? And why are VCs ponying up tens of millions in funding for a…
The collective belief that the limited-life feature of snapchat is worth billions of dollars represents what I think is a massive dilution.
Snapchat does nothing email doesn't, and email is free. I don't own and don't want to own any device which can guarantee any message has a limited life, that's all artificial.
Re: How Snapchat is Missing Out on $1.5M in Revenue Each Day
#17Monetizing a social user base is a great strategy for making millions of dollars. But Snapchat is clearly aiming at billions , or they wouldn't have turned down the multi-billion dollar offers they've already received. Facebook has little to fear from social apps with millions in revenue... so why were they willing to pay so much for a zero-revenue company? And why are VCs ponying up tens of millions in funding for a…
Well, they're not talking about leaving a million on the table, they're talking about leaving a million and a half on the table every single day ("if only they'd use our product!"). The figure they come up with is a half a billion dollars, which is a much larger number than you're giving credit to here.
That's assuming not-wildly-optimistic assumptions within a self-serving analysis. Dial that back to $100M rather than half a billion, and it's no longer a tremendously appealing option.
Facebook's per-user revenue for US users was $4.19 as of last October (with far smaller amounts for non-US users). And that's with years of experience, rich targeting based on multi-year social data mining, and the ability to embed several ad impressions per pageview. Is Snapchat likely to hit that high mark? Not in the short term, for sure.
Re: How Snapchat is Missing Out on $1.5M in Revenue Each Day
#18Earlier quoted context omitted.
Well, they're not talking about leaving a million on the table, they're talking about leaving a million and a half on the table every single day ("if only they'd use our product!"). The figure they come up with is a half a billion dollars, which is a much larger number than you're giving credit to here.
As a comparison, that's half of Twitter's current annual revenue.
And Twitter is unprofitable.
Re: How Snapchat is Missing Out on $1.5M in Revenue Each Day
#19Monetizing a social user base is a great strategy for making millions of dollars. But Snapchat is clearly aiming at billions , or they wouldn't have turned down the multi-billion dollar offers they've already received. Facebook has little to fear from social apps with millions in revenue... so why were they willing to pay so much for a zero-revenue company? And why are VCs ponying up tens of millions in funding for a…
> No, they have something much bigger and better up their sleeves.
Better security and real privacy (messages that are private from the company itself) would be nice.
Re: How Snapchat is Missing Out on $1.5M in Revenue Each Day
#20Monetizing a social user base is a great strategy for making millions of dollars. But Snapchat is clearly aiming at billions , or they wouldn't have turned down the multi-billion dollar offers they've already received. Facebook has little to fear from social apps with millions in revenue... so why were they willing to pay so much for a zero-revenue company? And why are VCs ponying up tens of millions in funding for a…
The collective belief that the limited-life feature of snapchat is worth billions of dollars represents what I think is a massive dilution. Snapchat does nothing email doesn't, and email is free. I don't own and don't want to own any device which can guarantee any message has a limited life, that's all artificial.
The guarantee isn't crucial, it doesn't have to be watertight; the fact that it sets up an expectation of privacy and non-sharing changes the social context. Enough to become the sexting app of choice. And that's hugely valuable.