In recent efforts to boost its financial performance, Snapchat has introduced new features such as an exclusive AI chatbot for Snapchat+ subscribers and launched a new business division named ARES.
During the previous year, Snapchat faced a significant net loss exceeding $1.43 billion and had to downsize its workforce by one-fifth. Despite these challenges, the multimedia messaging platform is now actively seeking avenues to enhance its overall profitability.
According to CEO Evan Spiegel, Snapchat boasts a monthly user base of 750 million individuals, with the majority being under the age of 30. Despite its substantial user demographic, Snapchat’s advertising revenue lags behind that of leading social media platforms like Facebook, Instagram, WhatsApp, and TikTok.
Efforts to improve profitability include the integration of artificial intelligence, catering to influencers and advertisers, encouraging users to opt for premium subscriptions, and introducing augmented reality features for online retailers.
While Snapchat expands its horizons into new territories, it acknowledges the importance of staying true to its fundamental appeal as highlighted by Insider Intelligence analyst Jasmine Enberg, who emphasized Snapchat’s essence as “an ephemeral, fun messaging service.”
Snapchat has ventured into the realm of artificial intelligence with the launch of an AI chatbot named “My AI,” offering functionalities like group chat questioning. Exclusive to Snapchat+ subscribers, this feature enables users to share distinctive snapbacks that promise to enliven their Snapchat conversations.
Alongside enhancing the user experience, Snapchat is actively seeking ways to attract compelling content creators to its platform. The company believes that these creators will drive views, engagement, and audience growth, translating into increased ad revenue for the platform.
Additionally, Snapchat has unveiled ARES, an assortment of augmented reality tools tailored for online retailers seeking to showcase their products effectively.
Image Source: XanderSt / Shutterstock