Snapchat is seeking a new round of funding at a mind-boggling $US10 billion valuation and has reached the 100 million-user mark , according to a recent Bloomberg article. Major brands are routinely crafting marketing campaigns designed for Snapchat.
In a recent report from BI Intelligence, we break down all the numbers and user trends that explain why Snapchat deserves all the attention it’s getting.
- Visual sharing on Snapchat is exploding. Sharing of Snapchat Stories — user-generated messages that combine photos and video — increased 100% in the last two months. (See chart, above.)
- Snapchat has significant scale:In our exclusive estimate of Snapchat’s global user base, we synthesized data from app charts, smartphone penetration numbers, survey data, and Snapchat’s own limited announcements. Snapchat is extremely popular in wealthy markets such as the North America and Western Europe. It’s building the necessary scale to emerge as a powerful brand platform.
- The majority of Snapchat’s users are female and a majority are in their teens and early twenties, according to our estimates. Young women are a difficult-to-reach and influential demographic.
- Engagement is high: Among 18-year-olds. it’s used more than voice calls for frequent communication with family and friends.
- Snapchat is more than disappearing photos. It has introduced several marketer-friendly features in the last eight months, including videos known as “Snapchat Stories.” Stories don’t disappear after a few seconds. They can be watched again and again in a 24-hour period. Major advertisers — including McDonald’s, Audi, and Taco Bell — are prolific users of stories. Snapchat has a clear path to monetization.
- Snapchat does pose disadvantages. It is currently difficult, though not impossible, to build a large audience on Snapchat. Since user feeds are not public, the app lacks an easy way for Snapchat images or stories to go viral.
We also look at what major brands including Audi, Taco Bell, Grub Hub, Audi, Mashable, McDonald’s and streetwear retailer Karmaloop are doing on Snapchat.
In full, the report:
- Includes 12 charts and datasets that break down Snapchat’s demographics (see chart on user ages, below), analyses brand activity, and showcases survey data on how specific audiences use the app
- Explains all of Snapchat’s new features
- Digs into some of the numbers behind successful brand efforts on Snapchat
- Lists the international markets where Snapchat has become a top app
- Describes the reasons why Snapchat is still an immature marketing platform and may not be an ideal medium for every brand