The Future of Snap Inc
What does the future of the photo-sharing powerhouse look like?
This is the question many people are asking as Snap Inc has filed for an IPO that could be valued at 25 billion dollars.
This post will cover where Snap has been, what it is currently doing, and where I believe it will be in the future.
A brief history of Snapchat
Here’s a nice info-graphic Gary Vaynerchuk’s team made that will cover their history for the most part.
What is Snapchat doing now?
They are making a lot of moves.
In November 2016 Snapchat announced the release of a new product called Spectacles. These sweet shades allow for users to record snaps and upload them to Snapchat.
The ads for Spectacles are everywhere. No branding. No call to action. Just models wearing some cool looking sunglasses. I’ve seen them at the bottom of the little carts you put your belt and shoes in at the airport and also massively displayed across Times Square. Why? What’s the point of this type of advertising if there is no call to action? No “Buy now at spectacles.com”.
The reason they are doing this is because they are making this new technology cool.You can’t buy one from a website, they come in vending machines. Being cool matters a lot especially when we saw Google Glass come a few years earlier and flop because it was primarily used by uncool people. You can have best technology in the world but it doesn’t matter unless people use it.
Snap Inc. is buying a lot of interesting companies.
Dec 25, 2016 Cimagine Media (an augmented reality commerce company)
Dec 19, 2016 Flite (an ad tech company)
Aug 15, 2016 Vurb (find local things to do)
Jun 3, 2016 Obvious Engineering (consumer products r&d company)
Mar 24, 2016 Bitstrips
Let’s do the math.
First, we have Spectacles. They are super cool and bring the Snapchat experience close to your eyes.
Then we have all the acquisitions. Just take a look at this video from Cimagine and try to imagine watching that through Snapchat spectacles.
You can try on clothes, watches, or any consumer product (the Obvious Engineering acquisition). Now just imagine the amount of money consumer goods brands are going to pour into Snap’s ad platform (the Flite acquisition). The most valuable asset to any advertiser is understanding where people’s ears are (radio ads) and where people’s eyes are (visual ads). Snap is already getting very close to our eyes with Spectacles, perhaps one day they will be closer.
If you go on the Snap Inc. website this is what you will see.
Snap Inc. is a camera company.
We believe that reinventing the camera represents our greatest opportunity to improve the way people live and communicate.
Our products empower people to express themselves, live in the moment, learn about the world, and have fun together.
Snap Inc., the camera company, is one day going to bring that camera to our eyes and make contact lenses.
Agree? Disagree? Are you investing when they go public? Leave a comment, or better yet add me on Snapchat and send me a video sharing your thoughts. :)