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Takeaways on the #SnapPartnerSummit today.
-Snap's US userbase likely grew in Q1
-Launching plug-and-play monetization for developers and publishers
-Bitmoji is a decentralized social network
-$SNAP continues positioning for a post-mobile world of experiential computing
Thread:
-Snap's US userbase likely grew in Q1
-Launching plug-and-play monetization for developers and publishers
-Bitmoji is a decentralized social network
-$SNAP continues positioning for a post-mobile world of experiential computing
Thread:
$SNAP premium video ads now reach 75% of 13-35 year olds in the US per month (up from 70% when it announced Q4 earnings) and 90% of 13-24 year olds. It reaches more 13-24 year olds than FB or IG in the US, Canada, UK, France, and Australia (some of the largest mobile ad markets)
Having lots of users is important, but where those users are located is even more important in terms of LTV. Facebook likely loses money on most of its users, making up for it significantly in the markets where Snap isn’t too far behind.
Snap launched an AR developer platform, Scan
Users tap + hold on the screen to pull up contextually relevant information on whatever they’re looking at. The menu at the bottom of the Snapchat camera has been re-worked to incorporate the new Scan features
techcrunch.com/2019/04/04/sna…
Users tap + hold on the screen to pull up contextually relevant information on whatever they’re looking at. The menu at the bottom of the Snapchat camera has been re-worked to incorporate the new Scan features
techcrunch.com/2019/04/04/sna…
Snap’s AR work matters because the camera is an entirely new consumption medium
Cameras only recently transitioned from hardware to software, and the next major computing platforms (and many companies) will be built on top of the worlds most-used cameras
Cameras only recently transitioned from hardware to software, and the next major computing platforms (and many companies) will be built on top of the worlds most-used cameras
The tech behind Scan will be commoditized, but $SNAP has the critical mass of daily camera users to actually take advantage of it.
Snap announced that 75% of DAU’s now play with AR each day, which is up from 70% in Q4. These represent a pool of early AR adopters with high LTV's.
Snap announced that 75% of DAU’s now play with AR each day, which is up from 70% in Q4. These represent a pool of early AR adopters with high LTV's.
Snap launched AR Creator Profiles and said 400k lenses have been created to date (300k in Q4)
Lots of Lens Studio templates, including Landmarkers, geo-aware features based on 3D models built via public snaps and geo-data. Hints at Snap’s AR Cloud plans.
Lots of Lens Studio templates, including Landmarkers, geo-aware features based on 3D models built via public snaps and geo-data. Hints at Snap’s AR Cloud plans.
Some big new Snap Kit products announced today: App Stories and Ad Kit.
App Stories allows developers to display users’ Snap Stories within their own app. Tinder and Houseparty are two of the launch partners, good example here:
App Stories allows developers to display users’ Snap Stories within their own app. Tinder and Houseparty are two of the launch partners, good example here:
Ad Kit is Snap’s third party ad network that lets developers and publishers embed Snap's ad products within their apps.
Few details, but likely begins with Stories ads, with the potential for third party AR camera ads, Bitmoji monetization, and much more
Few details, but likely begins with Stories ads, with the potential for third party AR camera ads, Bitmoji monetization, and much more
Snap Kit now has over 200 partners, with thousands using Story Kit for public Snaps.
Snap announced Creative Kit is coming to Netflix, GoFundMe, VSCO, Breaker and Anchor; with Bitmoji Kit coming to Venmo and Fitbit.
More partnerships likely coming soon.
Snap announced Creative Kit is coming to Netflix, GoFundMe, VSCO, Breaker and Anchor; with Bitmoji Kit coming to Venmo and Fitbit.
More partnerships likely coming soon.
If you believe consumer social is entering an era of fragmentation (and even if you don't), Snap Kit is important because it’s a decentralized social network with usage attribution and monetization opportunities for Snap, developers and publishers.
Stories and Ad Kit's bolted onto the existing $SNAP ad network
- Gives developers and publishers plug-and-play monetization in emerging media formats
- Decrease prices for advertisers
- Increases Snap's ad inventory
- Generates more Snapchat camera usage
- Gives developers and publishers plug-and-play monetization in emerging media formats
- Decrease prices for advertisers
- Increases Snap's ad inventory
- Generates more Snapchat camera usage
Snap is integral in the lives of the average sub-35 year old US consumer, and it partnered with the largest non-FB owned players within that demo
Considering Tinder / Houseparty users spend 86 / 55 minutes in-app per day, Stories Kit could be significant for all parties involved
Considering Tinder / Houseparty users spend 86 / 55 minutes in-app per day, Stories Kit could be significant for all parties involved
Snap’s ad network is interesting when framing its TTM US ARPU of $10 against the aggregate FB/IG US revenue on the number of core-Facebook DAU’s of $146.
Snap's ad prices are dramatically lower currently, and more advertisers and impressions hint at how that gap could close.
Snap's ad prices are dramatically lower currently, and more advertisers and impressions hint at how that gap could close.
At the moment Snap's business model is show more ads, from more advertisers, to more people. Pulling any of those levers adds high margin revenue
(Will need higher ad prices to make its ad network attractive for partners; seems to have Shows figured out)
(Will need higher ad prices to make its ad network attractive for partners; seems to have Shows figured out)
Snap announced a slew of new Shows (largely geared towards teens), an existing, high-margin product
The show Endless Summer had 28M viewers since launching October 1st, and 40% of Dead Girls Detective Agency viewers watched the entire season. More here:
snap.com/en-US/news/pos…
The show Endless Summer had 28M viewers since launching October 1st, and 40% of Dead Girls Detective Agency viewers watched the entire season. More here:
snap.com/en-US/news/pos…
The time Snapchatters spent watching Snap Shows over the past year is up almost 3x (Snap’s highest priced ad unit). Snap mentioned it doubled international media partners in the past year, rolling out that high margin product globally.
No mention of AR content like I’ve been waiting for (we still may be a few years away), but the Snap Partner Summit badge gives another look at what AR storytelling could look like.
Snap’s "One More thing" moment was the launch of real-time, multi-player gaming. The platform is directly embedded into Snapchat’s messaging feature and social graph, and game play conveniently integrates text and voice chat.
The first Snap games include Bitmoji Party (a Bitmoji-take on Mario Party), and social spins on the battle royale format, racing, scrabble, snake, and zombies.
It also officially announced its internal Game Studio led by creator of Fruit Ninja.
It also officially announced its internal Game Studio led by creator of Fruit Ninja.
Snap’s gaming platform is extremely relevant when you consider mobile gaming is a ~$77B market (per Snap), and roughly 43% of Snapchat DAU’s played Snappables AR games as recently as Q3.
We’ll likely see Snap’s gaming platform open up over time (Game Kit anyone?) and it could be integrated into the ad platform for monetization: in-game items, full-screen video ads (bolts onto Snap’s existing Snap Ad product), or self-serve full-game sponsorships a la AR lenses.
Further SnapKit integration continues positioning Bitmoji to be the AR/VR equivalent of the Facebook profile. It's a decentralized 134M+ user social network of early adopters, and could become the most important, portable IP layer in an AR/VR-first world.
Snap Kit has obvious benefits today (revenue, data) and builds $SNAP towards the inevitable transition from mobile to experiential computing. It's whole platform will eventually become a camera-based operating system built around the Snapchat camera.
With a business model centered on advertising, content, hardware, consumer well-being, and now gaming, $SNAP is a unique company that will continue pushing how we interact with the world. Will be interesting to see how quick it can flip to profitability.
Forgot two points yesterday:
Snap’s gaming platform being real-time is significant because that‘s likely the first major use case of AR glasses. Snap’s building the foundation today, and monetization appears to tie into the AR and video ad products built off Stories and Discover
Snap’s gaming platform being real-time is significant because that‘s likely the first major use case of AR glasses. Snap’s building the foundation today, and monetization appears to tie into the AR and video ad products built off Stories and Discover
Something to keep in mind re: $SNAP AR lenses is that they are the early camera-first equivalent of mobile apps. Snap's effort's there may seem fruitless, but if you believe mobile computing eventually becomes unbound from our phones, AR lenses are the mobile apps of the future.
All these recent product announcements align with the near completion of Snap's Android re-build and its notable recent expansion push in SE Asia (the poor performing Android app directly tied to its growth problem).
Going to be interesting to watch how everything ties together.
Going to be interesting to watch how everything ties together.
