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Snapchat Adds 9 Million More Daily Active Users in Q2, Reports 17% Increase in Revenue

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snapchat adds 9 million more daily active users in q2 reports 17 increase in revenue

Snapchat has reported its Q2 2020 performance update, showing increases in both users are revenue, and, in general, positive signs for the ongoing steady growth of the platform.

First off, on users, Snapchat added 9 million new daily active users for the quarter, and is now up to 238 million DAU.

Snapchat Q2 2020

As you can see from the charts, Snapchat is seeing the most growth in the ‘Rest of the World’ category, adding only 2 million and 1 million new users respectively in the US and European markets.

Much of that growth, says Snap CEO Evan Spiegel, can be attributed to improvements in how Snapchat runs on different devices.

As per Spiegel:

“We are continuing to invest in app performance and localization to make our service more accessible to people all over the world, with Snapchat now available to over two billion people in their native language. These efforts have helped us grow even faster in emerging markets like India, where we’ve seen over 100 percent growth in daily active users over the past year.”

India, which is now the second-biggest smartphone market in the world (behind China), is dominated by Android devices, which Snap, for a long time, had largely ignored. In 2018, Spiegel publicly acknowledged the issues with running Snapchat on Android, which many had suggested had impeded the app’s growth (and that Spiegel had ignored), and Snapchat launched a revamped Andoid app in 2019. Since then, adoption among regions like India has pushed the Snap’s growth higher – this time around, beating analyst expectations. 

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But still, users in developing markets are not as lucrative as those in other regions.

Snapchat Q2 2020

The variable scales used in these graphs somewhat hides the fact that users in the ‘Rest of the World’ sector produced significantly less ARPU this quarter – down to almost a quarter of what North American users now generate.

Still, more users provides more opportunity, and Snapchat’s revenue has grown 17%, YoY, bringing in $454 million for the quarter.

Snapchat Q2 2020

Given the current conditions, that seems like a solid result, but investors had been hoping for better numbers, and shares in Snap fell more than 6% in after-hours trading.

In his accompanying statements, Spiegel said that Snap is doing well, despite difficult market conditions.

“While our revenue growth rate continues to be impacted by ongoing market disruptions, the fundamentals of our business are strong, and the high levels of engagement on our service are backed by years of investment in our self-serve advertising platform, which is helping our partners achieve success and grow their businesses in this uncertain environment.”

Spiegel also noted that its seeing increased usage of its AR tools, with user time spent engaging with Lenses growing 37% year-over-year. 

Interestingly, a big chunk of that engagement is coming from community created AR experiences.

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“Today Snapchatters play with Lenses created by our community six times as often as they did just last year, and these Lenses now drive more than a quarter of all Lens engagement on Snapchat.”

Snapchat has been working to better facilitate its AR creator community, with the addition of Creator Profiles last April, and improved discovery options to help creators maximize their on-platform presence. That approach has now also extended to brands, with Snapchat adding dedicated brand profiles earlier this month.

Snapchat brand profiles

That, Snap’s hoping, will help increase brand reliance on Snap – as per Snapchat’s Chief Business Officer Jerami Gorman:

“Brands are starting to invest in Snapchat beyond advertising by building fun, engaging, and useful experiences for Snapchatters. The launch of Brand Profiles this month is a key pillar of this future. Today, our focus is on giving Brands a home for all the innovative AR experiences that they create, alongside their Stories. In the future, we believe that Snapchatters will engage naturally with businesses of all sizes across our service.”

Spiegel also shared some more ‘so-high-it-feels-like-it-can’t-be-true’ data points to underline Snapchat’s growing reach and influence among younger audiences.

“In the U.S., our platform reaches 90% of 13-24 year olds and 75% of 13-34 year olds. This audience is critical for advertisers as the Snapchat Generation develops lifelong habits, but also because young people are focused on driving change in the world and building a better future.”

At its partner summit last month, Spiegel noted that Snapchat now reaches more 13-34 year-olds in the US than Facebook or Instagram, which feels like an over-estimation, but maybe true at the same time? Like, it doesn’t seem possible that Snapchat can serve less than a quarter of Instagram’s total user base, yet still reach way more young people. But maybe? That’s what Snap says, either way.

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In addition to this, Snap also says that its Snap Original have found their niche, with some seeing tens of millions of views.

“For example, Will From Home, which culminated in a Fresh Prince of Bel Air cast reunion, was watched by more than 35 million people. Snap Originals continue to attract audiences that rival those of top TV series, and have reached more than 75% of the US Gen Z population so far this year.”

It seems that younger audiences have warmed to the shorter, episodic nature of Snap Originals, which is a positive sign for the future of the app – especially if those reach figures are, indeed, correct.

Also, I did like this chart:

Snapchat Q2 2020

After slowing its investment on research and development last year, Snap added $9m in R&D spending last quarter, and another $17 million in Q2. What could they be working on? AR-enabled Spectacles maybe?

Overall, it’s a mixed report for Snap – more users, more year-on-year revenue, but relative growth is difficult to judge in the current market conditions.

What is interesting in Snapchat’s case is that it’s been able to establish itself within its niche for more private social interactions with close friends.

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When Snapchat rejected Facebook’s $3b takeover offer back in 2013, Zuck and Co seemed determined to ruin the then-fledgling competitor, and with the arrival of Instagram Stories in 2016, it looked like it may have done just that, with Snap’s growth grinding to a halt, and even declining in late 2018. But Spiegel and Co. have stuck to the app’s core use case, and while the most recent revamp is clearly designed to attract more users through more user-friendly controls, Snap’s growth has mostly come from being the anti-Facebook, the anti-Instagram. It’s not about sharing your interests publicly, it’s about maintaining more intimate friendships via the app.

With the broader trends of social engagement shifting towards enclosed sharing, Snapchat has ended up being ahead of the game – and while focusing on its niche will mean that it’s unlikely to reach a billion users, if Snap can continue to build, it can remain a viable platform moving forward. 

Socialmediatoday.com

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Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

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Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

In a recent announcement, Snapchat revealed a groundbreaking update that challenges its traditional design ethos. The platform is experimenting with an option that allows users to defy the 24-hour auto-delete rule, a feature synonymous with Snapchat’s ephemeral messaging model.

The proposed change aims to introduce a “Never delete” option in messaging retention settings, aligning Snapchat more closely with conventional messaging apps. While this move may blur Snapchat’s distinctive selling point, Snap appears convinced of its necessity.

According to Snap, the decision stems from user feedback and a commitment to innovation based on user needs. The company aims to provide greater flexibility and control over conversations, catering to the preferences of its community.

Currently undergoing trials in select markets, the new feature empowers users to adjust retention settings on a conversation-by-conversation basis. Flexibility remains paramount, with participants able to modify settings within chats and receive in-chat notifications to ensure transparency.

Snapchat underscores that the default auto-delete feature will persist, reinforcing its design philosophy centered on ephemerality. However, with the app gaining traction as a primary messaging platform, the option offers users a means to preserve longer chat histories.

The update marks a pivotal moment for Snapchat, renowned for its disappearing message premise, especially popular among younger demographics. Retaining this focus has been pivotal to Snapchat’s identity, but the shift suggests a broader strategy aimed at diversifying its user base.

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This strategy may appeal particularly to older demographics, potentially extending Snapchat’s relevance as users age. By emulating features of conventional messaging platforms, Snapchat seeks to enhance its appeal and broaden its reach.

Yet, the introduction of message retention poses questions about Snapchat’s uniqueness. While addressing user demands, the risk of diluting Snapchat’s distinctiveness looms large.

As Snapchat ventures into uncharted territory, the outcome of this experiment remains uncertain. Will message retention propel Snapchat to new heights, or will it compromise the platform’s uniqueness?

Only time will tell.

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Catering to specific audience boosts your business, says accountant turned coach

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Catering to specific audience boosts your business, says accountant turned coach

While it is tempting to try to appeal to a broad audience, the founder of alcohol-free coaching service Just the Tonic, Sandra Parker, believes the best thing you can do for your business is focus on your niche. Here’s how she did just that.

When running a business, reaching out to as many clients as possible can be tempting. But it also risks making your marketing “too generic,” warns Sandra Parker, the founder of Just The Tonic Coaching.

“From the very start of my business, I knew exactly who I could help and who I couldn’t,” Parker told My Biggest Lessons.

Parker struggled with alcohol dependence as a young professional. Today, her business targets high-achieving individuals who face challenges similar to those she had early in her career.

“I understand their frustrations, I understand their fears, and I understand their coping mechanisms and the stories they’re telling themselves,” Parker said. “Because of that, I’m able to market very effectively, to speak in a language that they understand, and am able to reach them.” 

“I believe that it’s really important that you know exactly who your customer or your client is, and you target them, and you resist the temptation to make your marketing too generic to try and reach everyone,” she explained.

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“If you speak specifically to your target clients, you will reach them, and I believe that’s the way that you’re going to be more successful.

Watch the video for more of Sandra Parker’s biggest lessons.

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Instagram Tests Live-Stream Games to Enhance Engagement

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Instagram Tests Live-Stream Games to Enhance Engagement

Instagram’s testing out some new options to help spice up your live-streams in the app, with some live broadcasters now able to select a game that they can play with viewers in-stream.

As you can see in these example screens, posted by Ahmed Ghanem, some creators now have the option to play either “This or That”, a question and answer prompt that you can share with your viewers, or “Trivia”, to generate more engagement within your IG live-streams.

That could be a simple way to spark more conversation and interaction, which could then lead into further engagement opportunities from your live audience.

Meta’s been exploring more ways to make live-streaming a bigger consideration for IG creators, with a view to live-streams potentially catching on with more users.

That includes the gradual expansion of its “Stars” live-stream donation program, giving more creators in more regions a means to accept donations from live-stream viewers, while back in December, Instagram also added some new options to make it easier to go live using third-party tools via desktop PCs.

Live streaming has been a major shift in China, where shopping live-streams, in particular, have led to massive opportunities for streaming platforms. They haven’t caught on in the same way in Western regions, but as TikTok and YouTube look to push live-stream adoption, there is still a chance that they will become a much bigger element in future.

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Which is why IG is also trying to stay in touch, and add more ways for its creators to engage via streams. Live-stream games is another element within this, which could make this a better community-building, and potentially sales-driving option.

We’ve asked Instagram for more information on this test, and we’ll update this post if/when we hear back.

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