These Are The Reasons Why Snapchat Deserves A Massive $US10 Billion Valuation


Snapchat Stories Business Insider Intelligence Graph

napchat is seeking a new round of funding at a mind-boggling $US10 billion valuation, according to Bloomberg.
In a recent report from BI Intelligence, we break down all the numbers and user trends that explain why Snapchat deserves all the investor attention it’s getting.

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  • 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 synthesize 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, 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.

The report is full of charts and data that can be downloaded and put to use.

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:

For full access to all BI Intelligence’s reports, briefs, and downloadable charts, sign up for a free trial.

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