Snapchat’s parent company, Snap, is stepping up efforts to grow beyond its loyal user base and reach profitability with new tactics, including the use of artificial intelligence.
During the annual conference, CEO Evan Spiegel revealed that an average of 750 million people worldwide use the image-centric messaging service each month, with the majority between the ages of 13 and 34. Ads and turned into annual profits, unlike Meta, which includes Facebook, Instagram, and WhatsApp.
The company’s net loss tripled to $1.43 billion last year, as it laid off a fifth of its workforce.
Snap’s new tools and products are aimed at attracting audience-winning creators, encouraging users to pay for subscriptions, and convincing advertisers that the app is a worthwhile platform. However, as Snap looks for ways to make money, it “must be careful not to stray too far from its roots” as a casual, fun messaging service, warns Insider Intelligence analyst Jasmine Enberg.
Balancing private exchanges, “public spaces” and the sense of “community and intimacy” that has been instilled since its inception will be critical to Snapchat’s success.
Snapchat’s pioneering use of photos to communicate and enhance what the camera sees using AI “lenses” was a major draw for users in its early days. However, as other platforms copied its ephemeral messages, Snapchat lost relevance, with Creative Strategies analyst Carolina Milanesi noting that “no one is talking about Snapchat”.
Unlike TikTok and Meta, the app does not attract the attention of regulators. Still, Spiegel sees Snapchat as a break from “social media popularity contests” where users can enjoy authentic communication with friends and family without the pressure to look “pretty or perfect” in every post. .
Snapchat’s new tools include the ability to ask the “My AI” chatbot questions in group exchanges, which subscribers to the Snapchat+ subscription service can soon use to receive a “unique generative Snapback that continues visual conversations.” keeps.”
The company is also working to attract social media influencers whose posts attract viewers and advertisers. Jack Brody, vice president of Snap, believes that creators find Snapchat a place where they can “express their authentic selves”, while Alyssa McKay, a leading female creator on Snapchat, said that she has her own audience. have a strong bond with because they feel they know him. However, most social media influencers don’t consider Snapchat necessary, preferring to focus on platforms like Instagram and TikTok, according to Alessandra Angelini, founder of Inflor.
Snap also unveiled its new business unit ARES, which will provide online retailers with a suite of augmented reality tools, expanding its offerings beyond messaging. As Snap looks to balance its roots with profitability, the success of its new initiatives and products remains to be seen.
