In recent attempts to increase profitability, Snapchat has released newer tools including a unique AI chatbot for Snapchat+ subscribers and a new business unit named ARES
Last year Snapchat reported a net loss of over $1.43 billion, while also laying off a fifth of its workforce during the same period. The multimedia instant messaging, however, is now exploring different ways to increase its overall profitability.
As per CEO Evan Spiegel, Snapchat is used by a total of 750 million people each month, with a majority of its users being under the age of 30. Despite having a major user base and influence amongst the younger generation, the advertising revenue for Snapchat does not match the revenue earned by other top social media platforms such as Facebook, Instagram, Whatsapp and TikTok.
Attempts at increasing profitability include the introduction of artificial intelligence, making the platform influencer/advertiser friendly, convincing users towards paid subscriptions and the addition of augmented reality tools for online retailers.
As the application continues to explore and grow into other areas, it has a duty to keep itself true to its roots and not forget the primary reason behind its fame, which according to Insider Intelligence analyst Jasmine Enberg, is Snapchat’s quality of being “an ephemeral, fun messaging service.”
Snapchat enters the AI industry with an AI chatbot named “My AI”, which includes the ability to ask questions in group chats. Only available to Snapchat+ subscribers, this feature will allow subscribers to send out unique snapbacks that will make their Snapchat conversations a lot more interesting.
Apart from making the application better for current users, Snapchat is currently exploring different ways to bring in some engaging content creators towards its platform. According to the company, these creators will bring in views, clicks and their audience on the platform thus helping the platform earn an increased revenue from advertisers.
Snapchat has also recently announced ARES, a suite of augmented reality tools that will allow online retailers to showcase their products.
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