In this data-driven roundup on the platform’s users and demographics, you’ll see exactly why Facebook paid $1 billion in cash and stock to buy the photo-sharing platform 24 months after launch. So how many people use Instagram right now in 2022? How does that translate into terms of scale? Well, almost one-quarter of the world’s active internet users will access the app EACH month!
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Android users, it’s over to you.Since its launch in October 2010, Instagram has seen a meteoric rise to 1 billion active users, making it one of the top 4 social networks worldwide. So will be the measure of success or failure in a year’s time? “Growing the number of Android users,” says Valoti. We believe in the future it won’t just be through your smartphone. “The camera is the computer, it’s the link with the world. “When Evan is asked about where the future is heading, he will talk about computing being layered over the world,” says Valoti. Snap is also preparing a second version of its “Spectacles” – a goofy pair of glasses that could take 10 seconds of video and share it via the app – after they failed to take off first time around.
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Why has it done badly on Android? Valoti suggests that the heavy data requirements – sending images and video – are more easily in reach of iPhone owners with better data contracts, but admits that “we need to make the experience much better.” If that works, then the programmatic advertising will make it easier to put ads in front of that larger user base.
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“We have been very vocal about making it better on Android,” Valoti says. There are also proportionally more Android users outside the US (43% of Snapchat’s users are in the US).īut Snapchat presently has more users on iPhone than on Android, which stunts its revenue potential.
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The iPhone users tend to be more valuable to advertisers because they are more affluent – but the Android user base can more than make up for it in numbers. About 15% of people use an Apple iPhone, and the other 85% a phone running Android. Yet a cursory examination of Snap’s financials suggests that if it could raise its per-user revenues by 50%, it would become profitable. The company is hoping for more success with its Spectacles than it had in 2017. Snapchat languished at $2.62 in revenue per North American user, and $0.85 for all those beyond half of Twitter’s figure in the US, and less than a tenth of Facebook’s. Twitter generated $5.19 per US user, though only $1.17 per international user. Even users beyond those three regions generated $2.81 each. In the third quarter, advertising on Facebook’s two ad-supported services, Facebook and Instagram, generated $35.39 per user in North America, $11.75 in Europe and $4.29 in the Asia-Pacific region. The other problem is that Snapchat doesn’t get enough revenue from the users it does have. Facebook, with Instagram, has 1.5 billion DAUs. Twitter doesn’t release a DAU figure, but claimed 326 million monthly active users. Snapchat had 186 million daily active users (DAUs) in the third quarter of 2018. It isn’t quite an essential destination, even for the young demographic that predominantly uses it they also spend huge amounts of time on YouTube, which has all the heft of Google’s algorithms behind it. First, Snapchat doesn’t have enough users to reach critical mass with advertisers.
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Snap faces two problems in its struggle for profitability. Since then the stock has mostly slid downhill, to a valuation in mid-December of $7.3bn it has yet to have a profitable quarter. Having created Snapchat in 2011, based on an app idea for “ephemeral messaging” that he had at Stanford University, Evan Spiegel brought Snap to market in March 2017, valued at $33bn.
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It aims to do that in two ways: by getting more users who own smartphones running Google’s Android software and by delivering more adverts to all its users through “programmatic” advertising bought automatically by ad agencies. But as it looks back on 2018, where it recorded losses of more than $1bn (£790m) on revenues of just $791m in the first three quarters, the clear target is to improve revenues and head towards profitability. For 2019, making that distinction seems to be an important part of the company’s message.