Second-quarter earnings of both Snapchat and Twitter released on 22nd July reported that positive results in terms of revenue have shown.
For achieving consumer satisfaction, every social platform has been struggling amidst the pandemic. Social media has also been a break for everyone in terms of staying connected to their close ones in crises.
Insight into Snapchat’s growth
Snapchat, now officially known as Snap Inc. (SNAP), promotes itself as a camera business. Because its core product is the Snapchat camera app, which lets users connect with family and friends, share photographs and videos, and chat. Snapchat is a marketplace for advertising space. Snap makes the majority of its money this way.
Snap is up against much competition from other mobile engagement and advertising startups. This comprises technological firms with digital platforms and those in the more conventional print, radio, and television industries. Apple Inc. (AAPL), Meta Platforms’ Facebook, Instagram, WhatsApp, Google, and Twitter are significant rivals.
Snapchat has been able to grow by introducing a new feature called Spotlight; which can be referred to as a Tiktok clone. Surprisingly, its DAUs got 42% growth in Q2 and the content also tripled than before. Comparing it to the last quarter’s results, the daily user time spent on the platform is increasing by 60%. Snapchat has also moved towards e-commerce as it recently bought 3D product modeling firm vertebrae so that users can conveniently make purchases on their phones in the near future. Augmented reality through AR shopping has made the focus of attention by Snapchat so that its user base is sustaining. Vertebrae have previously grouped with Facebook and now it’s time for Snapchat to deploy their AR experiences to customers.
Did you know that:
Twitter has over 319 million users, however, there are over 300 million people who use Snapchat. (Statista, 2021)
A reflection on Twitter’s success
The renowned bluebird represents Twitter. With 192 million monetizable active daily users globally, Twitter was founded in 2006 by Jack Dorsey, Noah Glass, Biz Stone, and Evan Williams due to another firm, Odeo, being stung by the debut of Apple’s iTunes.
This group includes people from many areas of life. Twitter is one platform that caters to all of them, whether an actor wants to advertise his forthcoming film, a politician wants to interact with the public, or a regular person wants to air their problems. Its goal is to make it possible for everyone to instantaneously communicate their thoughts and opinions with the rest of the world.
Twitter, when we talk about launching new features, is also not off the list. It recently launched a feature similar to the Clubhouse app, a live audio option known as Spaces. Twitter is likely to partner with NFL for the upcoming football season and entertain football fans through spaces. Moreover, by killing fleets, it tells us that Twitter’s focus is now on audio spaces and boosting user engagement. All this is proving to be a success for Twitter as its R&D expenses have increased by 39%.
If we talk about India, Twitter’s surge had increased up to 74% in the lockdown. After the US and Japan, India now stands as the third biggest market for Twitter. If we further talk about revenue, Twitter has skyrocketed its growth by $1.19 billion in Q2, including an overall 74% increase YoY.
Both Snapchat and Twitter are being successful in growing their revenue by increasing their user base and bringing the latest trends to their platforms. Undoubtedly, this growth has resulted from the pressure that the pandemic has put on the apps through increased usage time. One way or another, all social media platforms are earnestly working to pay attention to what the users need.
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