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That' s how Snapchat makes money by making video disappear.
Snapchat, with more than 150 million everyday user and a value of nearly $17 billion, is more valuable (on paper) than a number of other well-known technology firms like Twitter or Yelp. However, what makes an investor so optimistic that Snapchat - a news disappearance and wacky facial filter corporation - will one day become a big name?
Specifically, the Group expects to achieve revenues of approximately $300 million this year, compared to a $50 million sales goal last year. How exactly does Snowchat intend to make all the money? Just like other web businesses like Google and Facebook make money: Instantly display user displays at a number of important locations within the application.
Filter and lenses: Taco Bell donated a lense that turned the user into a taco. Snapchat's main challenge is two-fold. Firstly, it does not do a good job assessing the effectiveness of these advertisements for its advertiser. By spending money to promote your application, you' re making sure your ad is working.
Snapchat is not good at quantifying this at the moment, but has recently been working with external metrologists to try to fix it. Another challenging thing - and this could be a piece of cake - is that Snapchat CEO Evan Spiegel doesn't like advertisements aimed at consumers basing on things like their web browser histories.
Described as retargeting ads, these ads are a staple for companies like Facebook and Google; the big advantage of digital advertising is that marketers want to know exactly who they're reaching. Snapchats unwillingness to become really personally with his advertisements is no problem at this early stages, but it is definitely rewarding to look to the future.