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Snapchat Rises to 280 Million Users, Reports Strong Take-Up of TikTok-Like ‘Spotlight’ Option

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snapchat rises to 280 million users reports strong take up of tiktok like spotlight option

Snapchat has posted its latest performance update, showing solid increases in both usage and revenue throughout Q1 2021.

The numbers will certainly raise some eyebrows, and likely get more social media marketers considering their options on the app.

First off, on usage – Snapchat is now being used by 280 million people every day, a 22% increase in year-over-year performance, and the app’s biggest increase in its YoY usage growth in more than 3 years

Snapchat Q1 2021 - Daily Active Users

As you can see here, while Snapchat usage increased in all regions, the app once again saw its biggest growth in the ‘Rest of World’ segment, which is largely due to the company’s ongoing investment in more localized content and improved language support options.

Snap has seen particularly strong growth in India of late, with its Android update, rolled out back in 2019, playing a key role in boosting Indian user uptake (Android is the most popular OS, by far, in the Indian market). Indeed, Snapchat reports that for the first time in Q1, the majority of its DAUs were on the Android version of the app. That’s a big switch for a company that long resisted Android, and focused more on aligning with the technical superiority of iOS devices.

Snapchat also launched its first Snap Original for the Indian market in the quarter, with a local version of ‘Phone Swap’.

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Snapchat now has over 60 million users in the Indian market, closing in on its biggest usage sectors.

Snap’s original content continues to play a key role in attracting new users more broadly, and boosting in-app engagement, with over 20 million people watching the new series “Ryan Doesn’t Know” starring Hollywood star Ryan Reynolds.

Snapchat’s also seeing increased engagement with its AR tools, with the number of Snapchatters engaging with its AR Lenses daily growing more than 40% year-over-year. That looks set to become an increasingly important focus for the app, with reports that Snap is also working on a new, fully AR-enabled version of its Spectacles device.

Snap has also highlighted the growth of its TikTok clone ‘Spotlight‘, which, in addition to being a feed of short video clips, also provides cash incentives – up to $1 million per day – for the best, most engaging Spotlight shorts.

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Several creators have made big money from the option, and that’s likely helped to improve overall take-up of the option.

“In March, over 125 million Snapchatters used Spotlight, our newest platform surfacing the most entertaining Snaps from our community. We also launched Spotlight in three new countries – India, Mexico, and Brazil – making it live in a total of 14 countries.”

That’s significant within the scope of Snapchat’s overall usage growth numbers, but the question looming is how sustainable that process will be. Can Snap simply keeping paying out millions of dollars to keep the good content coming, and keep users coming back to Spotlight for more?

Definitely, there are some concerns within that, as reflected in Snap’s ‘Cost of Revenue’ chart.

Snapchat Q1 2021

As you can see, the company’s ‘Content and Developer Partner Costs’ have seen a big increase over the last two quarters, more than doubling on Q3 2020. That figure incorporates its Spotlight payouts ($90 million) as well as its ongoing AR development, and this will be a key element to monitor in future, as to how Snap can maintain its momentum in line with costs.

But at the same time, revenue is also climbing. Snapchat posted a 66% year-on-year revenue increase for the quarter, rising to $770 million.

Snapchat Q1 2021

So Snap’s cost of revenue may have increased by $158 million year-over-year, but its overall revenue intake increased by $308 million within the same period. Maybe the math works out, and Snap can sustain those Spotlight costs, as it’s usage benefits would be helping to drive increased advertiser interest.

In its accompanying notes, Snap has also highlighted its rising eCommerce opportunities, with increased investment in AR try-on tools, digital clothing for avatars and advanced opportunities via its evolving full-body scan AR tech. 

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Snap also says that over 75 million Snapchatters watched beauty-related content each month on Discover in Q1, which could point to further marketing opportunities on the platform that play into its advanced AR features. Snap launched a new AR try on experience with Estee Lauder earlier in the week. 

As explained by Snap CEO Evan Spiegel:

“We believe that our leadership in both AR capabilities and user engagement positions us well to expand augmented reality to new use cases and behaviors. For example, as the shift to online shopping continues to accelerate, we believe there is a massive untapped opportunity for AR-driven product innovation in eCommerce – and that our young audience will continue to be early adopters of these new technologies and shopping experiences.”

Spiegel says that Snap is focused on providing more tools around apparel and accessories, and helping buyers find the right size, fit, in order to reduce friction in online shopping experiences. Snap acquired FitAnalytics last month, a company that provides tools that help brands facilitate more accurate product matches through AR.

Another area of ongoing concern for Snap is the impact of Apple’s IDFA update, which we now know is being rolled out next week. Reports have suggested that both Snapchat and Facebook will be most significantly impacted by the change – but Snap’s Chief Business Officer Jerami Gorman says that both Snap and its ad partners are prepared.

“We are supportive of Apple’s approach because we have always believed that advertising should respect customers’ privacy. The fact that these changes are coming later than we anticipated has provided additional time to adopt Apple’s SKAdNetwork and begin implementing and testing with our partners. Advertisers that represent a majority of our direct response advertising revenue have successfully implemented SKAdnetwork for their Snap campaigns.”

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Gorman further notes that Snap’s designing an array of privacy-centric solutions to ensure they can continue to deliver a privacy-first experience, and best-in-class offerings for its ad partners.

Overall, it’s a positive report for Snap, which has now established its market niche, and its presence within the wider social media sphere. It did, at one point, seem like Facebook would swallow it up, or force it out, but Snap has stuck to its guns, and remained attuned to its user community, which has enabled it to refine its offerings and maximize its potential as a connective tool.

And it’s definitely now a worthy consideration for marketers. For comparison, Snapchat, now at 280 million users, has more daily actives than Twitter (192 million mDAU) and Reddit (52m). 

It’s worth considering Snap’s audience, and how it might fit into your strategy.

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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