Snapchat primarily targets high schoolers (13-17) who are often time-rich but cash poor.

So, there is no mandatory fee to use the app, but they've just introduced a premium subscription 🤔

The founders capitalized on teens’ desire to communicate online without consequences 🤫

They quickly utilized features like “Streaks” and “Snapscore” to encourage users to return daily.

Friends can see if you lose your streak and how much or how little you talk with people.

Since Snapchat mastered daily activity, it turned to advertising.

99% of Snapchat revenue comes from advertising.

Snapchat’s estimated ad revenue in 2021 was $2.62 billion 🤯

Only 1% comes from selling their camera products like Snap Spectacles 😎

Snap Spectacles sell for $380/pair

Snapchat has two ad services for advertisers:

1) Self Service, where a company pays per 1,000 impressions

2) Official SnapAds, which can cost up to $700k/day

Fun fact: nowadays, Snapchat frequently pitches itself as a “camera company” due to lenses, Snap Spectacles, and Pixy, an accessible camera drone that they acquired.