Snap Incorporated announced that throughout the coronavirus pandemic, usage had increased tenfold on their social media service. Snapchat’s activity saw 249 Million consumers per day. It marks their highest recorded volumes in history. It’s expected that with this unexpected growth, Snap Incorporated will generate 365 Million consumers by 2024.
Expectations of growth for 2020 were exceeded with 249 Million active users per day, marking an 18% increase in usage compared to Q1-Q3 2019. Statistical data indicates that primary users are aged between 13 to 34 in North America, with that age group varying from international statistics. Through the increased consumer activity, Snap Incorporated saw revenue rise to $679 Million. Investors are thrilled & excited over the growing profits, with the 2018 Snapchat Redesign prompting fears that consumers were uninterested in the photo-messaging application. COVID-19s pandemic has proved that Snapchat is still an active platform amongst North Americans.
Snap Incorporated ascertains that profits are derived from their augmented reality services & unique content. Snapchat maintains television series that run five to ten minutes, airing per week. That content is offered alongside an array of sports programming. Advertisers have subsequently begun selecting Snapchat to reach their customer base. Profits jumping to $679 Million enabled for Snap Incorporated’s shares to increase by 23%, marking their largest valuation on Wall Street to date.
Evan Spiegel, the Chief Executive Officer of Snap Incorporated, has been shocked by the traction that’s occurred for Snapchat since the COVID-19 pandemic began. CEO Spiegel was questioned on why advertisers selected the Snapchat platform for their marketing campaigns. Evan believes that younger audiences entice advertisements with the possibility of lifelong consumers.
CEO Evan Spiegel noted that organizations & brands used the pandemic’s uncertainty to implement new methods of advertising. It’s conventional to use Facebook, Instagram, and Twitter to digitally advertise to millions in North America. Snapchat hasn’t been a traditional method, but after the pandemic, that could change & Snap Incorporated could find themselves rivalling Facebook by 2024-25. It should be noted that increased advertising could’ve been prompted by advertisers selecting to boycott Facebook, which continues today. Facebook has lost hundreds of millions by not appealing to their advertisers.