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Snapchat as a Media Entity By Tasha Millman and Courtney Schellenger

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Snapchat as a Media EntityBy Tasha Millman and Courtney Schellenger

How does Snapchat Work?Snapchat is a photo and video messaging system that allows content to self

destruct after it has been viewed.

Snapchat by the Numbers 100 million daily active users

65% of users contribute daily

8,796 photos shared per second

3 million: 2014 Revenue

50 Million: Projected 2015 Revenue

6 billion daily video views

-It would take you ten years to view all the photos shared on Snapchat in the last hour

History of Snapchat-Three Stanford students, Evan Spiegel (co-founder and CEO), Bobby Murphy (co-founder and CTO) and Reggie Brown (CMO) launched “Picaboo” in July 2011

-Spiegel and Murphy kicked Brown out after a disagreement on how much equity he would get

-Spiegel and Murphy changed the app “Picaboo” to Snapchat in Fall 2011 and started telling their friends about their creation

-Lightspeed Venture Partners stepped in and invested $485,000 seed round on a $4.25 million valuation after the app hit over 100,000 users

-By February 2013 Snapchat was seeing over 60 million snaps a day, with that they raised a 13.5 million Series A from Benchmark

-By May 2013 Snapchat was rising in users and big brands were taking an interest in the app

-In June 2013 the app raised a $80 million Series B from IVP at a reported valuation of $800 million

-Fall 2013 the Snapchat story was created

History of Snapchat Continued-November 2013 Mark Zuckerberg offered Spiegel $3 billion for the app, Spiegel said no.

-Late 2013 Snapchat receives $50 million Series C round from Cotue Management with a reported valuation of over $2 BILLION

-End of 2013 Snapchat adds filters, timestamps, speed overlays, temperature and the ability to REPLAY snaps

-June 2014 Snapchat launches the “Our Story” feature allowing users all to post to a single stream of an event (Ex: Boulder snap story)

-July 2014 Snapchat launches geofilters (shows your location)

-November 2014 Snapchat makes a deal with Square Cash which allows the app to have the ability to send and receive money between users

-January 2015 Snapchat launches Discover a feature that is a daily refreshed channel alongside brand advertisements (some media partners include National Geographic, Yahoo News, People, Food Network, etc.)

How Snapchat Stories Work -Stories, allowing you to add a "snap" to a feed for 24 hours before it vanishes.

-Lets you build and string together a narrative of your day. Stories can be viewed as many times as you'd like before the 24 hours is up and they disappear. Clips are removed piece by piece as they reach the time limit and newer ones are added to the end of the story cycle.

-The Our Story feature shows a community perspective of an event allowing users at the same event or location to post their stories, making one big one

-They launched the Our Story feature at EDC live in 2014

How Snapchat Discover Works

● Snapchat Discover was the most significant push transition from social media network to digital media platform.

● Publishers are able to update their platform daily and include minute-to-minute updates through their outlet.

● Demonstrates the tension between profits and the public interest as Snapchat is able to show the news as Entertainment by consumers while still providing news as education to citizens.

Snapchat as an Economic Media● Media Economics is concerned with how the media industries allocate

resources to create information and entertainment content to meet the needs of audiences, advertisers, and societal institutions.

● Snapchat shifted their business model by including a multitude of publishers who cover a variety of topics such as entertainment, news, cooking, and politics.

● These are appealing to advertisers because it creates a varied demographic and reaches a variety target market, as well as niche markets.

●●●

Snapchat as a an Advertising Outlet-Snapchat asks for $750,000 for 1 day of advertising on the application.

-Their first advertisement debuted on October 19, 2014 in the form of a 20-second movie trailer for Ouija

-The goal was to “deliver an experience that’s fun and informative the way ads used to be”

-Vertical video feature as a key differentiator in the social ad space(don’t have to flip your phone)

Geofilters a form of Advertising-Sponsored geofilters allow brands to create specific brand-themed geo-filters, which can be used from specific locations defined by the advertiser

-McDonalds was the first to buy one

Big Brand Campaigns through SnapchatUniversal Pictures: movies such as Pitch Perfect 2, Mad Max: Fury Road, and Jurassic World all have been promoted within Discover (Jurassic World was featured on the Daily Mail Channel in Discover featuring different clips of the movie)

Big Brand Campaigns Through SnapchatPepsi: has been running short story ads specifically targeted to Snapchat’s audience through the Sky Sports channel on Discover

-the campaign is apart of Pepsi Max’s first global campaign called “Genius”

https://vimeo.com/130818797

Big Brand Campaigns Through SnapchatKraft: used Snapchat to launch their newest flavors for Philadelphia Cream Cheese, the ten second ads were featured on Discover’s CNN channel

https://vimeo.com/130439917

Economic Profitability ● Facebook, a social network that has acquired over 50 messaging,

communication and social media technologies, including Instagram, offered to buy Snapchat in 2013 for 3 Billion dollars cash.

● After Snapchat’s 2015 investor valuation, they raised 537.6 Million in sale of common stock, or valuing the application at around 16 Billion Dollars publicly.

● As of October 2015, and Snapchat’s acquisition with Looksery, a facial recognition technology that allows users to overlay their faces with filters, led to Snapchat’s first in-App purchase structure.

● Users can pay $0.99 to buy expired snapchat filters including the throw up rainbow filter, this direct pay model had increased Snapchat’s profitability greatly.

Snapchat as a Cultural FrameworkRepresentation: Snapchat is seen as the cool new technology, Evan Spiegel has made many statements criticizing Facebook’s advertising techniques and data distribution of users. Made by a college student for millennials, and with the vanishing of your information it is the anti-hero to Facebook’s eternal collection of all of your information.

Identity: Consumers can be anything they want for 24 hours. They can represent themselves on their story how they want. Their original identity was photo messaging used for sending nude photos, but Snapchat is now the third most used social media by all millennials.

Cultural Framework, Cont. Production: Snapchat didn’t sell out to Facebook to make a quick dollar because they want to keep creating a changing platform. Based in Venice Beach, California they are offering a relief of tech start-ups who are based in Mountain View in Silicon Valley.

Consumption: Snapchat’s mobile app user growth from December 2013- May 2014 was 67% and top earning Snapchat Stars, can earn up to $100,000 in a week by advertisers and third parties.

Regulation: There is very little regulation over the technology but recently Snapchat has changed their privacy agreements after an FTC settlement because users were able to screenshot private photos.

Globalization of Snapchat-Introduction of world wide stories

-Allows users to see other parts of the world, events going on all over the world, and decreases the exclusivity

-Allows you to get an intimate look into a city and its people/culture

-Snapchat has become the number one Iphone app in 13 different countries (Business Insider)

Snapchat and Politics● Snapchat is acting as huge entity for the 2016

presidential election due to it’s key following being in the 18-31 years old range, with over 70% of it’s users between 18-25.

● Politicians and political parties are using Snapchat, GeoFilters, and live interviews to increase knowledge and involvement of this demographic due to their importance in deciding the next presidential candidates.

● Has covered all recent Primary Debates for both the GOP and Democratic Parties, as well as primary events in key states such as Ohio and New Hampshire.

● Allows users to process hyper metabolized information through 10 second maximum video clips.

Future of Snapchat● The future of Snapchat can be best related to the theories of

Technological Change Theory● The uses of new technologies are difficult to predict, even when powerful

economic and regulatory forces try to shape them in particular ways● While Snapchat’s original intention was to create vanishing photo

messaging, the cultural implications and innovative technology has created a media platform that is able to engage users desire for large amounts of information in short period amounts of time.

● Snapchat will only be more of a media platform through the election year and will continue to grow as a one stop application as users can get news, follow events, follow their friends, send personal messages, without leaving the application.

Questions1. What kind of advertisements have you seen on Snapchat?2. How do you think Snapchat is a media entity and not just a social media

platform?3. How do you think Snapchat will change in the future?4. Any questions for us?!

ReferencesSnapchat and Marketing: http://theamericangenius.com/business-marketing/snapchat-has-become-a-marketers-dream-stats/

Snapchat and Politics: http://www.csmonitor.com/USA/USA-Update/2015/1116/Bernie-Sanders-joins-Snapchat-Will-the-app-shape-the-election

Snapchat and the Storytelling: http://www.cjr.org/analysis/dont_worry_this_post_wont_disappear.php

Snapchat and Paid lenses: http://www.technobuffalo.com/2015/11/16/snapchat-lenses/

Competition: http://www.theguardian.com/technology/2015/nov/13/facebook-snapchat-ephemeral-chat-messenger

People want to buy them: http://www.forbes.com/sites/davidwismer/2013/11/17/snapchat-how-to-make-3-billion-or-was-it-4-billion-disappear-and-other-quotes-of-the-week/

Profitiability: http://www.wired.com/2014/01/secret-snapchats-monetization-success-will-surprise/

History: http://techcrunch.com/gallery/a-brief-history-of-snapchat/

Advertising: https://www.sprinklr.com/social-scale-blog/snapchat-advertising-3v-strategy/

ReferencesFuture of Snapchat: http://www.foxbusiness.com/technology/2015/02/16/future-social-media-snapchat/

Snapchat Aquisitition of Looksery: http://techcrunch.com/2015/09/15/snapchat-looksery/

Snapchat and Advertising: http://www.adweek.com/news/technology/snapchat-asks-brands-750000-advertise-and-wont-budge-162359

Facebook’s 3 Billion Dollar Offer: http://www.forbes.com/sites/jeffbercovici/2013/11/13/facebook-wouldve-bought-snapchat-for-3-billion-in-cash-heres-why/

Snapchat Valuation: http://www.bloomberg.com/news/articles/2015-05-29/snapchat-said-to-be-valued-at-16-billion-in-new-fundraising

Globalization: https://accousticmusings.wordpress.com/2015/02/14/snapchat-the-future-of-globalization/