Snapchat Aims for Long Term By Joining With Professional Content Providers
Snapchat aims to launch a new service called “Snapchat Discovery” in November that will let users browse through paid content the same way as they do now. The move by Snapchat is to improve the company total worth. If the service launches according to the plan, it will be Snapchat’s first monetization move.
According to The Wall Street Journal, Snapchat is holding talks with at least dozen news companies, publishers and television networks to “let users read daily editions of publications as well as watch video clips of TV shows or movies by holding down a finger on the screen.”
Snapchat Discovery will be a news network where users will be able to read news and interact with content published by professional content providers other than the messages they already get from their friends.
The interesting thing about Snapchat Discovery is that users will be viewing professional content the same way as they view snaps from their friends — self-destruct-in-10-seconds style. It is likely that Snapchat thinks users on their app interact with the content more on their app as compared to other social networking apps. This is because of the model — timers on snaps — that the app has followed.
Around 27 million users use Snapchat in which most of the users are teenagers of ages 13-18. Being a service with majority of tech-savvy young minds, it offers great opportunity to the advertisers to target this age group. Among the dozen news companies which are being linked with Snapchat Discovery, the only news company that has been named by WSJ is The Daily Mail and its website MailOnline.
Snapchat rejected Facebook’s $3 billion acquisition offer earlier this year. Snapchat CEO Evan Spiegel termed the idea of Facebook’s acquisition as short-term despite the huge offer that Facebook made. “There are very few people in the world who get to build a business like this,” Spiegel told Forbes. “I think trading that for some short-term gain isn’t very interesting.”
Since then it has been finding ways to generate revenue and Snapchat Discovery seems to be the first.
Snapchat has been a free service for its users and it will hopefully remain to be free, but every business needs to generate revenues and ads are a good option for that. It was Mark Zuckerberg only who dared to think that ads aren’t cool.