CEO Even Spiegel has just announced an impressive accomplishment for Snapchat. The video messaging app was just announced to have over 8 billion views a day. This represents an increase of over 2 billion in just about a year. The gap is closing in between them and Facebook. Should Mark Zuckerberg be worried?
SNAPCHAT POPULARITY INCREASING AT ASTONISHING RATE
Snapchat’s rising popularity is far from average. In a meeting held at the Morgan Stanley technology conference on Monday, Spiegel announced that those video views have increased nearly five times the amount from last year. The app has 100 million daily users that use Snapchat for 25-30 minutes on average. This is occurring mostly with users between the ages of 18-31 who make up 40% of its market. In terms of value, Spiegel says the company is valued at $16billion.
FACEBOOK FEELS THE BURN FROM COMPETITION
Like Google and Facebook have figured out long ago, advertising pays off big time. Since launching advertising just over a year ago Snapchat has seen their profits increase tremendously. In 2015, the number of views was 6 billion. Now, it has increased by another 2 billion in under a year. Mark Zuckerberg must be getting nervous as this is greatly closing the gap to Facebook and their video views. As of November 2015, Facebook had 8 billion daily views, which has increased finitely since then. Zuckerberg has since announced plans to expand their focus on video in the coming years. One can only assume that he is feeling the heat.
VIACOM TO TAKE APP TO NEXT LEVEL
If Snapchat’s immense success wasn’t enough, their latest deal with Viacom will surely propel them to the next level. This agreement will now allow Viacom to advertise on the mobile app’s behalf. This will help them greatly increase revenue and expand advertising. Until recently, ad buyers have been skeptical of using the app for advertising due to lack of organizational experience. With Viacom in the equation now, ad buyers will surely flock to the video messaging app in order to target markets of young adults. With this increase in revenue, Facebook may have met their match.