Snapchat is one of the Social Media Giant and it’s officially called SNAP Inc. Snapchat showcases itself as a camera company and it has created an App named Snapchat. This app is very popular among the people to connect with their families, friends, and loved ones and share or exchange photos or snaps with them with one click. So, did you ever brainstormed about how Snapchat makes money??? If yes, then follow me.
The Revenue Sources of Snapchat
One of the interesting facts about Snapchat is it has 186 Million daily active users globally. Being founded in 2011, Snapchat’s annual revenue lies around $1.20 Billion. It’s a whopping amount right? Where did all these $ are coming from??
The SNAP is generating revenue from it’s 4 sources –
- Sponsored Lenses
- Branded Geo filters
- Sports Partnerships
1. SNAP Advertisements
All the Social Media platforms are generating a huge percentage of their revenue from Advertisements and SNAP is no different.
The snapchat makes money by showcasing the ads of various brands in between your stories and your friends stories as well.
According to the SNAP internal analytics, over 60% of the Ads were played with sound and the average cost for the swipe up ads stands between $1-3.
Due to millions of daily active users, it will attract tons of advertisers to show their ads to those millions and get some leads from them and later convert them to customers.
Another interesting and most attractive USP in terms of Advertisers is, their ads will be visible to the full screen.
Must read: How to create ads in Snapchat
2. Sponsored Lenses
How one can stay away from the Augmented Reality powered Crazy lenses for their face?? But don’t be too happy about it. Snapchat charges some fee for this based on the duration and other paraments.
These fees will start at $5. If you are an active Snapchat user, you will remember the Tach bell lenses. It is the most used and viewed lenses in SNAP history.
This feature alone generated $7,50,000 and recorded over 200Million impression over these lenses. Awesome right!
How to: Use lenses in Snapchat
3. Branded Geofilters
Geofilter is one of the most attractive features in the App. It allows you to apply some cool filters against your Pic based on the Location.
It will bring the best filters based on your geo location. You can purchase the on-demand filters from the Snap store.
These filters are engaging and you can make your followers take some actions such as visit the store, website, or even make a purchase as well.
Snap chat is using the Geofilters wisely to push all their merchandise and in-app products to get more revenue. I hope now you are getting a good idea about how Snapchat makes money.
Must see: Create your filter here
4. Sports Partnerships
Snapchat has been involved in many Sports partnerships such as NBA, MLB, and more. The whole idea behind it is to brand themselves in front of young folks around there.
They are many Sports-based companies such as Puma, Nike, Adidas, and more are eager to make their statements clear through their ads on Snapchat to reach a million minds.
Read: Sports partnerships by SNAP
Wrapping Up – How Snapchat makes money
Snapchat is one of the leading social media platforms in the world. It has millions of daily active users and this fact is enough to get tons of advertisers to the platform.
How Snapchat makes money – This question is answered in this article. The revenue source of Snapchat includes multiple aspects such as Ads, Selling in-App products, Partnerships, and more.
That’s all for now. Stay tuned for much more interesting articles!!!
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