Snapchat has come a long way since its launch in 2011. Today there are about 400 million
photos which are shared through Snapchat every day. It signifies how well the app has
done in the three years. Snapchat is a very simple and easy to use app. It allows you to
communicate directly with your loved ones. You can share your photos and videos and the
data disappears within a time frame of 1- 10 seconds. This disappearing feature has been
pivotal for the success of Snapchat. The app makes were also subject to a very lucrative
takeover by Facebook for a whopping $3 Million, all in cold hard cash. To everybody’s
utter amazement, Bobby & Evan- the founders of Snapchat refused the takeover. This
resistance was even more intriguing because the app was not making any revenue when the
When the founders of this amazing app refused to sell their company, it was evident that they
had something in their mind. This app would simply not give up and continue to thrill its
users with exciting new features. However, with the recent hacking of its servers, there has
been lot of criticism. The app team need to gear up and build a strong and secure environment
for their users. All these build up will need lot of money. Although Snapchat raised $800
Million through funding, they would other ways to generate revenue to sustain.
The Snapchat Incorporation is currently in negotiation with lot of companies. They are also
meeting lot of media companies and ad agencies. Snapchat is planning to launch new ads,
movie trailers through their new service called Snapchat Discovery.
One of the early trials that Snapchat did with its users was with a horror movie trailer.
Clearly the users were petrified with the new discovery and the trial was deemed a failure.
Most of the app users are teens and young adults who use this app to share their private
photos to their friends. It is obvious that if they are bombarded with ads, news clips or videos,
they will be irritated and they would feel that their privacy is invaded. It is clearly an idea
which does not seem to comply well with the users.
The move to introduce ads does guarantee the app makers lot of cash. The app makers
need to fine tune their ads introduction strategy so as to maintain the harmony of its users.
Some of the companies like Tacobell and Grubhub have already started advertising through
Snapchat. The advertisers will reach a lot of young customers through this app. It will
give the advertisers a pool of potential customers even if the users themselves might not be
interested in the ads.
It is difficult to analyse what the outcome of such move will bring to the fortunes of the
Snapchat Inc. The ads give the app makers a steady income, it gives the advertisers access
to young potential customers, but it should not ruin the experience of the app that the users
feels. The app runs on the success of its users and if the users are turned off by ads, the whole
project will cease to exist.