Snap has grown – it has to be, Snapchat’s parent hosted its first Investor Day today – and executives were optimistic that the nearly ten-year-old social media platform beloved by the generation. Z will see his income increase by 50% or more over the next several years. .
Co-founder and CEO Evan Spiegel kicked off the three-hour virtual event with a roundabout dig at bigger rivals and set the stage for a deep dive into the company’s staples from Venice, Calif. , run by Stories – the oldest company and the biggest selling engine – Camera, Snap Map, Chat and Spotlight. Spiegel is enamored with augmented reality (AR), which is increasingly popular with Snapchat users and advertisers, but, he said, is a decade away from catching on.
Snap Inc. user growth, fourth quarter finance boom, but first quarter outlook depressed
“AR is the next major change in IT and we are committed to leading the way,” he said. With the telephone “we are still constrained by all four sides of a small screen”, but “a new era of self-expression” is coming.
One accomplishment noted by Spiegel is just how better the fast growing company has become at making products that are hard for others to rip off.
“The stories have shown us that other companies can take our innovations and copy them. It has fundamentally reshaped the way we think about our business … [and drove] our new innovations in scalable platforms that we believe are more defensible. They add more value and are more difficult to replicate, ”he said.
Stories, from 2013, are linked into a story. Facebook launched Instagram Stories and also attempted to buy Snap that year for $ 3 billion. The Mark Zuckerberg-led giant reportedly reached out again in 2016 before Snap went public in 2017 at $ 17 a share, reaching a public valuation of $ 24 billion. Its market capitalization hit $ 100 billion for the first time, briefly, yesterday.
Stocks, which rose 11% on Tuesday to over $ 70, have skyrocketed over the past year from a 52-week low to below $ 8. Wall Street seems to love the story of the young and expanding international platform that sees itself as a softer, gentler social media presence and has in fact largely bypassed the controversies that pass Facebook, Twitter, Google and YouTube from privacy to hate speech to disinformation. . Spiegel was not brought in to testify in Congress recently.
Jacob Andreou, Vice President, Product, described what Snapchat is not – a “relentless data-driven culture as we’ve seen in our peer companies, many of which are primarily focused on driving behavior. , he said, focuses on “the value of the product, not the behavior.”
Snapchat has 265 million daily active users (up 22% in the fourth quarter year-over-year). It reaches over 70% of 13-24 year olds in countries accounting for more than half of digital ad spend globally. About 80% of her litter exceeds the age of 18. Commercial Director Jeremi Gorman pointed to the potential of Snapchat, which accounts for less than 2% of the digital advertising market in the United States but reaches almost half of American smartphone users.
The Snap Map feature, which lets users see where their friends are, quickly adds small businesses and executives see it as a multi-billion dollar platform over time. Spotlight, a curated offering of the best Snaps launched last year, receives 175,000 submissions per day and had more than 100 million monthly active users in January.
The presentation did not focus on programming, but noted that in the second half of last year, more than 85% of the US Gen Z population watched at least one Snap Original, shows designed exclusively for Snapchat, like Will Smith’s talk show. Will of the house (43 million viewers in total). NBC and Buzzfeed are also content partners.
Snap’s demo is hard to reach on traditional TV, Gorman noted. Big investments in its ad technology platform have caught up with other players on Snapchat.
One of the biggest hurdles is educating advertisers, who have heard of Snapchat but often have no idea what’s on it – even though their kids can. “We sell to an audience that doesn’t see Snapchat on a daily basis. They don’t use it, ”she said. “He’s a heavyweight.”