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Here’s everything you need to know about Snapchat

In July 2021, Snapchat will be celebrating its 10th Anniversary! The students of Stanford University, Evan Spiegel, Reggie Brown, and Bobby Murphy, founded the app in 2011. Fun fact: The founders own a combined 95% of voting shares (Spiegel with 48% and Murphy with 47%), which are undiluted and transferable to the other when one retires or dies.

One of the major reasons why Snapchat was such a major hit amongst the young generation was the concept of photos/videos getting disappeared within a few seconds. The concept of Snapchat Story was new to this generation, where all the added people on their account could view the story within 24 hours of it getting disappeared.

The youngsters use Snapchat to share photos with their friends and family, connect with a younger demographic, and attract new followers; the brands use it to drive traffic, boost engagement, build brand awareness; influencers use the app to influence the purchases, offer another way to share content; and the most common reason why everybody uses the app is to build trust. Snapchat is one such app, which the kids use to prove their coolness.

Hence it’s not rocket science to understand that the business model of Snapchat primarily targets the Millennial and Generation Z. Not only this, but Snapchat is also a great room for the local and international brands for their marketing.

If, like me, you are also feeling old thinking that you don’t know how to use Snapchat in this digital era, here is a tutorial by Tech Insider:

Snapchat Statistics

  • Total Number of Daily Active Users: 265 Million
  • Total Number of Daily Active Users Who Engage with Augmented Reality on Snapchat: 180 Million
  • Total Number of Indians who Use Snapchat: 74.35 million.
  • Number of Snaps Created Everyday (Photos & Videos): 4 Billion +
  • Average Time Spent on Snapchat per Daily Active User: Over 30 Minutes
  • The number of Snapchat Daily Video Views: 18 Billion.
Infographic: Snapchat's User Growth Accelerates | Statista You will find more infographics at Statista

Snapchat – An Idea executed in a structured way!

The business model of Snapchat is structured so that it provides enormous value to the needs of IM users, businesses, and content creators.

Value to the IM(Instant Messagers) users-

The importance of privacy has only been growing; Snapchat was the first platform that understood the youngster’s need for privacy. The striking feature of Snapchat was that images, videos, and texts shared over Snapchat could disappear automatically unless voluntarily saved.

On one hand, where other social media applications like Facebook and Instagram created the urge to share the picture-perfect with their audience, Snapchat encouraged its users to share a person’s daily happenings from the very original moments.

Deleting is our default 👻 This means most messages sent over Snapchat will be automatically deleted once they’ve been viewed or have expired. Here are some quick rules of thumb for how long different kinds of content stay on Snapchat servers!

Sanpchat on When does Snapchat delete Snaps and Chats

Value to the Businesses-

Today the main targets of big brands are the millennials. Snapchat being an active growing community of the younger generation, turned out to be a brilliant place for brands to market themselves.

Value to the Content Creators-

Indian Content Creators were taken aback when Tik-Tok was banned, just then Snapchat Launched Spotlight to fill the void. It has a similar feature, allowing content creators to create short videos and share them with the public. Not only that, the top creators are paid each day from a million-dollar pool.

Features That Helps Snapchat Stand Apart


Filters are basically the design overlays that we add on top of our snaps to make them look attractive. They are also fascinating frames, which are used in photos and videos.  Snapchat also lets brands get their customized Geofilters or Moment Filters for themselves.


Snapchat Lenses are relatively new, and the fact that Snapchat is the first to use them on a social application makes it even more interesting. So this is how it works, Snapchat uses reality and what’s happening around the world to create fun and inviting lenses that add humor and attractive effects to the pictures and videos.


During the initial days, Snapchat Stories created a lot of buzz. It was one of the most interesting features of the application, which no other social media apps had at that time (now almost every application has). It allowed the user to share the image or video with the audience for up to 24 hours.

Other Distinctive Features Includes –

  • SCAN

What’s the business model of Snapchat? How does the app make money?


Paid advertisements contribute to the major earnings of Snapchat, 99% of Snapchat’s revenues come from the sponsored ads. The ads are designed in such a manner that they get camouflaged in the form of user-friendly updates, hence the millennials get engaged with them unknowingly and without realizing that they were actually paid ads. In 2021, the social messaging app’s estimated net advertising revenues are projected to reach 2.62 billion U.S. dollars, up from 1.53 million U.S. dollars in 2019.


The reality-generated Snapchat lenses act as eye-candy to the youngsters as they are humorous, joyful, and fun to use. To make sure these lenses are bug-free and user-friendly, Snapchat updates them every week, and brands pay Snapchat to have a lens according to their needs and demands.


Many companies partner with Snapchat to create their own customized Geofilters, especially for special occasions or particular events.


Many times we come across brand advertisements while watching our friend’s story. This is because Snapchat smartly places those advertisements to catch the viewer’s attention.


Discover is a feature, which also contributes to the revenue for Snapchat. Publishers partnered with the company to get their content featured on Discover pay a lot of money to the app.


Snapchat has recently launched the Snap Store; it sells exclusive merchandise like Bitmoji Clothes, Hats, sweatshirts, etc.

Here’s where Snapchat spends to enhance the user’s experience and sustain this business model


Snap Inc. is the parent company of Snapchat; it is a camera company that firmly believes in improving the camera quality and revolutionizing the way people click photos to facilitate effective communication. In 2020, Snapchat spent $1101.56 million on R&D.


Snapchat main expenditure is on marketing and maintaining its infrastructure. Snapchat incurred $489 million in costs of revenue in the first two quarters of 2020 itself.


Snapchat pays the creators of the most viewed video each day from a $1 million pool. The payout is calculated after comparing the number of views of a video with other viewed content.

The following table clearly details down the breakdown of balance sheet of Snap Inc. and will give you a clear picture of business model of Snapchat.

Snapchat has helped us to understand the importance of capturing moments and sharing it with our loved ones! But one noticeable fact about the app is that, its only famous amongst the youth; do you think Snapchat stands a chance to get popular among the middle-aged people?


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Urvi is currently doing her MBA in marketing. She believes that you can only grow if you do mistakes and learn from them. She is currently working as a business development intern in a startup. After completing her MBA in 2021, she aspires to join a MNC as a product and brand manager.

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