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How Does Snapchat Make Money?

Mobile app Snapchat is projected to earn $100 million in revenue on an annualized basis, according to Financial Times.

how does snapchat make moneyBut one thing isn't clear: How does Snapchat make money? Where does that $100 million come from? After looking at the app, the answer isn't obvious…

Snapchat makes money several ways, but its newest revenue source, "Sponsored Lenses," was just launched in October. The new lenses feature allows users to take a picture or video of themselves and add different animated filters to the shot.

These animations can feature different brand logos or branded animations. 20th Century Fox was the first sponsor of lenses, allowing animated selfie features with characters from "The Peanuts Movie." Snapchat users could add animated characters such as Woodstock and Snoopy to their messages.

According to FT, Snapchat will charge up to $750,000 for a brand to reach Snapchat's entire user base on peak days like Halloween, Thanksgiving, and Black Friday.

On non-peak days, Snapchat would charge $450,000 to $750,000.

But that's just the most recent way Snapchat has started earning revenue. Here's the full history of Snapchat and its monetization…

The History of Snapchat and How It Makes Money

Snapchat was first released in 2011. The app lets users send pictures, videos, messages, and drawings to a list of controlled friends. Several other messaging apps, like Tango and HeyTell, also provide users an alternative means of sending messages.

Snapchat was able to separate itself as the first app to offer a vanishing message feature. When messages are sent through Snapchat, they will completely disappear in one to 10 seconds.

Numerous messaging apps now offer the same feature, but Snapchat remains the most recognized brand.

Like other popular social networks, Snapchat did not generate revenue in its early existence. But now what keeps Snapchat unique is the way it monetizes its app. In addition to lenses, a feature called "Snapchat Discover" has been generating revenue for the company for months…

Join the conversation. Click here to jump to comments…

  1. Paul | May 11, 2016

    My 14 year old granddaughters love it and that age group I hate to say is the leading edge of the social media revolution

  2. Olle | June 2, 2016

    I also heard they were planning to sell user photos/videos as stock footage, but how would that last without compensating the users?

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