3 ms·

Why would Snap not want to grow the number of users?

by yellow_postit 9y ago

electic 9y ago
You can think of it as Apple vs. Microsoft. You can have every desktop in the world and not make as much cash as Apple.
- ridruejo 9y ago
  Except Snapchat is not making real money and less prospects to do so by the day https://stratechery.com/2017/snaps-apple-strategy/ https://stratechery.com/2017/snaps-apple-strategy/
vit05 9y ago
Apparently, Evan Spiegel has said they do not want to expand to poor countries like India and Spain. And he doesn't care so much about the Android version. http://variety.com/2017/biz/news/snapchat-evan-spiegel-only-for-rich-people-anthony-pompliano-1202028526/ http://variety.com/2017/biz/news/snapchat-evan-spiegel-only-...
- malloryerik 9y ago
  Spain qualifies as a poor country? Damn...
  - bduerst 9y ago
    Snap's target market's unemployment rate is somewhere around 40% in Spain.
  - godzillabrennus 9y ago
    The amazing part of Spain being a poor country is that all Arab countries combined have a lower GDP than Spain. The Bay Area has a larger GDP than the country of Mexico.
    - eipipuz 9y ago
      Where are you getting those numbers? Bay Area: $758.5B, Mexico $1,046B Sources: https://en.wikipedia.org/wiki/San_Francisco_Bay_Area#Economy https://en.wikipedia.org/wiki/San_Francisco_Bay_Area#Economy https://tradingeconomics.com/mexico/gdp https://tradingeconomics.com/mexico/gdp
    - adventured 9y ago
      > The amazing part of Spain being a poor country is that all Arab countries combined have a lower GDP than Spain. That's not true. Spain: $1.23 trillion Saudi Arabia: $639b, UAE: $371b, Egypt: $332b Those three combined are larger than Spain's economy. Then you also have Iraq: $167b, Algeria: $160b Qatar: $156b, Morocco: $103b, Sudan $94b, etc.
  - aphexbr 9y ago
    I'm in Spain, and I know a lot of local Snapchat users. Not sure what he's on about.
- mandeepj 9y ago
  He has denied that allegation. http://www.ndtv.com/india-news/app-for-all-says-snapchat-after-ceo-evan-spiegels-alleged-poor-india-remark-1682548 http://www.ndtv.com/india-news/app-for-all-says-snapchat-aft...
hahahsnap 9y ago
Do you think running a social media app which is multimedia heavy for developing countries give you profit? Sorry that's not true. Facebook generated revenue of ~25 million for 2016 in India. Supporting 100s of millions of users content for 25M dollars. I'm sorry this is a lossy business but good thing to keep increasing number of users to pump up the stock price and keep engineers motivated. Snapchat won't go to countries like India, SE asia which are densely populated as it doesn't really make sense to them. 1. Poor app experience as users have cheap android phones in which fb app won't even work properly. 2. Hosting cost/Advertiser cost might not be great. These two points make sure, investing in developing countries to get more users is nothing more of a Stock Play and a joke.
- what_ever 9y ago
  If you see this thread, you are the only one defending Snap and you yourself have uninstalled Instagram. I personally used both for a while and now I have pretty much stopped using Snapchat in favor of Instagram. Sure Snapchat is still the more known of the two when it comes to sending photos directly but that's not where money is made. Money is made in stories by having sponsored stories and ads inserted between the stories of the people you follow. Instagram is getting more of this so they can show more ads and make more money. Also, the advertisers you seem to be so sure of being on Snapchat will move their money to Instagram once they know that Instagram has more users and more eyes. Also teenagers don't make any money to spend on things after watching the ads. So I am not sure if that's a positive in favor of Snapchat. If five people are telling they think this is looking good for Instagram which you have already uninstalled, may be its time to look back at your opinions. But who am I to tell, I don't have any horse in this race. I do own some $FB but not enough to think about this one way or the other.
  - hahahsnap 9y ago
    Please post your demography, age, what your social network looks like. We can discuss from there why you're using instagram instead of snapchat :) Teenagers don't have money but they have drive purchasing decisions within a family. "once they know that Instagram has more users and more eyes" >> Advertisers just don't look at raw numbers. They advertise over a target audience. US, age, gender, mobile phone users: 18-24. Snapchat got a generation of users which facebook/instagram is not able to get. FB and instagram is using their demographics which is not at all important to manipulate snapchat stock price. If advertisers are paying more money just for some random views, then ad industry has some serious issues and it's not called effective advertising.

Why would Snap not want to grow the number of users?

electic 9y ago

You can think of it as Apple vs. Microsoft. You can have every desktop in the world and not make as much cash as Apple.

ridruejo 9y ago
Except Snapchat is not making real money and less prospects to do so by the day https://stratechery.com/2017/snaps-apple-strategy/ https://stratechery.com/2017/snaps-apple-strategy/

vit05 9y ago

Apparently, Evan Spiegel has said they do not want to expand to poor countries like India and Spain. And he doesn't care so much about the Android version. http://variety.com/2017/biz/news/snapchat-evan-spiegel-only-for-rich-people-anthony-pompliano-1202028526/ http://variety.com/2017/biz/news/snapchat-evan-spiegel-only-...

malloryerik 9y ago
Spain qualifies as a poor country? Damn...
- bduerst 9y ago
  Snap's target market's unemployment rate is somewhere around 40% in Spain.
- godzillabrennus 9y ago
  The amazing part of Spain being a poor country is that all Arab countries combined have a lower GDP than Spain. The Bay Area has a larger GDP than the country of Mexico.
  - eipipuz 9y ago
    Where are you getting those numbers? Bay Area: $758.5B, Mexico $1,046B Sources: https://en.wikipedia.org/wiki/San_Francisco_Bay_Area#Economy https://en.wikipedia.org/wiki/San_Francisco_Bay_Area#Economy https://tradingeconomics.com/mexico/gdp https://tradingeconomics.com/mexico/gdp
  - adventured 9y ago
    > The amazing part of Spain being a poor country is that all Arab countries combined have a lower GDP than Spain. That's not true. Spain: $1.23 trillion Saudi Arabia: $639b, UAE: $371b, Egypt: $332b Those three combined are larger than Spain's economy. Then you also have Iraq: $167b, Algeria: $160b Qatar: $156b, Morocco: $103b, Sudan $94b, etc.
- aphexbr 9y ago
  I'm in Spain, and I know a lot of local Snapchat users. Not sure what he's on about.
mandeepj 9y ago
He has denied that allegation. http://www.ndtv.com/india-news/app-for-all-says-snapchat-after-ceo-evan-spiegels-alleged-poor-india-remark-1682548 http://www.ndtv.com/india-news/app-for-all-says-snapchat-aft...

hahahsnap 9y ago

Do you think running a social media app which is multimedia heavy for developing countries give you profit? Sorry that's not true. Facebook generated revenue of ~25 million for 2016 in India. Supporting 100s of millions of users content for 25M dollars. I'm sorry this is a lossy business but good thing to keep increasing number of users to pump up the stock price and keep engineers motivated. Snapchat won't go to countries like India, SE asia which are densely populated as it doesn't really make sense to them. 1. Poor app experience as users have cheap android phones in which fb app won't even work properly. 2. Hosting cost/Advertiser cost might not be great. These two points make sure, investing in developing countries to get more users is nothing more of a Stock Play and a joke.

what_ever 9y ago
If you see this thread, you are the only one defending Snap and you yourself have uninstalled Instagram. I personally used both for a while and now I have pretty much stopped using Snapchat in favor of Instagram. Sure Snapchat is still the more known of the two when it comes to sending photos directly but that's not where money is made. Money is made in stories by having sponsored stories and ads inserted between the stories of the people you follow. Instagram is getting more of this so they can show more ads and make more money. Also, the advertisers you seem to be so sure of being on Snapchat will move their money to Instagram once they know that Instagram has more users and more eyes. Also teenagers don't make any money to spend on things after watching the ads. So I am not sure if that's a positive in favor of Snapchat. If five people are telling they think this is looking good for Instagram which you have already uninstalled, may be its time to look back at your opinions. But who am I to tell, I don't have any horse in this race. I do own some $FB but not enough to think about this one way or the other.
- hahahsnap 9y ago
  Please post your demography, age, what your social network looks like. We can discuss from there why you're using instagram instead of snapchat :) Teenagers don't have money but they have drive purchasing decisions within a family. "once they know that Instagram has more users and more eyes" >> Advertisers just don't look at raw numbers. They advertise over a target audience. US, age, gender, mobile phone users: 18-24. Snapchat got a generation of users which facebook/instagram is not able to get. FB and instagram is using their demographics which is not at all important to manipulate snapchat stock price. If advertisers are paying more money just for some random views, then ad industry has some serious issues and it's not called effective advertising.