Snapchat seeks path to profit without losing its way
SANTA MONICA
Snapchat parent Snap on April 19 unveiled new tactics including the increased use of artificial intelligence in its struggle to expand beyond the app’s loyal user base and reach profitability.
Snap chief Evan Spiegel, who cofounded the Southern California-based company in 2011, opened its annual conference with word that an average of 750 million people use the image-centric messaging service each month.
In more than 20 countries, Snapchat reaches the vast majority of those who range in age from 13 to 34, Spiegel said.
But unlike Meta, with its “family” of apps including Facebook, Instagram and WhatsApp, Snap has never made enough money from advertising to turn an annual profit.
Last year, Snap’s net loss tripled to $1.43 billion and it laid off a fifth of its workforce.
Tools and products presented on April 19 were intended to attract audience-winning creators to the platform, get users paying for subscriptions, and convince partners such as advertisers that the app is a place to be.
However, Snapchat must be “careful not to stray too far from its roots” as an ephemeral, fun messaging service as it seeks ways to make money, warned Insider Intelligence analyst Jasmine Enberg.
Snapchat needs to find a balance between private exchanges, “public spaces,” and the sense of “community and intimacy” that it has cultivated since its inception, the analyst added.
