Introduction

Social networking is one of the most popular online activities with high user engagement rates and expanding mobile possibilities. It is estimated that US users spend more than 121.8 billion monthly minutes on social media. It is estimated that there are around 2.3 billion users using Social Networking and that number is estimated to continue growing (Statista). In an ever-changing technological world, it is imperative that all businesses stay up to date with the most advanced and most efficient forms of marketing and communications to ensure that their products are being fully observed and seen by the public.

With many stars in the Social Media world, such as Facebook, Instagram, and Pinterest, businesses are being given more and more virtual options to consider when marketing their products. In this article, we will focus on the Social Media platform known as Snapchat, and will review its possible implications for businesses around the world.



The Platform in Brief

Snapchat is a fun, ephemeral messaging application for sharing moments through pictures, short videos, messages, and video chat. Users are able to use different processes for connecting with their friends, such as by using snaps, stories, or chats. Basically, Snapchat is a mobile app that allows you to send self- destructible photos and videos to your friends (Frasco , 2013). These snaps or “snapshots” can be sent to your following and will self-destruct after a predetermined time up to 10 seconds.

The application’s main demographics consist of users between 13 and 23 years of age, with about 70% being woman, with an estimated 80% of Snapchat’s users being located in the U.S (Chowdhry, 2015). Snapchat was developed by Evan Spiegel, Bobby Murphy, and Reggie Brown, followed by some Stanford University students. In 2014, it was estimated that the app’s users were sending 700 million photos and videos per day, while stories were being viewed around 500 million times per day (Wikipedia, 2015).

Valued at around 10 billion dollars, Snapchat has an estimated 100 million monthly active users. It was revealed from Snapchat that 400 million snaps are received every day (Sobal, 2013). However, in the end, it has been shown that these calculations are mere estimates and the actual number of users and overall snaps sent is still a mystery.



The Platform in Operation

While Snapchat is a fun application for most teens sharing photos and videos, businesses can also benefit from using it. For example, marketing any type of fashion line to your following through Snapchat is a great way to keep your followers in the loop of new products, while also only giving them a 10 second sneak peek of all new products. This builds hype and creates a stronger sense for promotions.

One popular company attempting to use Snapchat is Taco Bell. Taco Bell recently got on Twitter and announced that it had joined Snapchat and would be reveling an exclusive surprise to all Snapchat followers the next day. Before long, Taco Bell had an established following to whom they could share brand announcements, coupons, and fun updates with (Sobal, 2013). To create an account, you must install the app from the app store. Once installed, users will be prompted for an email address and password to create an account.

At this point, users can invite friends to be connections and followers and can begin sharing pictures, stories, etc. Also, recently, Snapchat introduced “Snapchat Discover”.  Snapchat Discover is a new way to explore stories from different editorial teams. It’s the result of collaboration with world-class leaders in media to build storytelling format that puts the narrative first. It enables companies to engage with users by posting summarizations of their content. Snapchat Discover’s launch partners include CNN, Comedy Central, ESPN, National Geographic, etc.

Instead of using and reading content ordered in random by the Social Media platform, the user determines what he or she will read by choosing his or her desired channel, which has been specialized organized for the editors of that channel. Through Snapchat Discover, users are presented with snapshots of current stories and information that are conveniently organized for easy reading and in small amounts at a time for easy understanding (Chowdhry, 2015).



The Platform’s Pros and Cons

Snapchat has multiple pros and cons that face its users and businesses. On the positive end, Snapchat is an exclusive, one-on-one connection with customers. By sending snaps to its followers, businesses can help its customers feel more engaged and privileged. Also, it is a great medium for coupons and giveaways. 16 handles is recognized as one of the first businesses to implement Snapchat as a marketing tool. Their promotion went like this: Customers added the company on Snapchat, sent them a snap, and in return, a snap was sent back with a coupon. In order to redeem the coupon, customers had to wait until they were at the register before opening and redeeming it (Sobal, 2013).

On a more negative note, Snapchat may not be worth the time to larger companies and bigger markets, such as cars, boats, or high budget items. Because the snaps are usually quick, Snapchat would be more beneficial to more niche markets such as yogurt, or a small coupon at the mall, etc., where much thought isn’t necessarily required. Also, Snapchat messages leave no traces and only lasts up to 10 seconds. Always depending on something that lasts 10 seconds to build a consumer base and consistently maintain promotional hype and buzz can be somewhat risky and take much time to develop (Strout, n.d.)



Analysis

Snapchat is a fun and easy way to connect with your friends, by sending them quick moments of your day that they can review, chuckle at, and move on. It eliminates the need for long, drawn out posts and lengthy readings and gives way to a quick and convenient form of fun. However, on the business aspect, I feel as though Snapchat will be faced with some limitations and challenges. Being limited to 10 seconds for every promotion could become cumbersome to some and get old. Snapchat promotions will be most successful in niche markets with lower budget items that are more impulsive in nature and don’t require much thought.

However, on the larger end products such as cars and more thought provoking items, Snapchat, in my opinion, would not be the best-suited platform. Often, customers in this market want to engage in something they can think about, soak in, and make a decision on. Giving someone 10 seconds to make these decisions or think of a new idea may be exciting for some, but I believe, annoying for most. Overall, Snapchat is a fun app for laughs and small products and can be used as a great buzz builder or small promotional platform.



References

Ballve, M. (2013, November 18). Here's Why Snapchat Actually Has A Very Clear Path To Success As An Ad-Driven Business. Retrieved February 21, 2015, from http://www.businessinsider.com/snapchats-valuation-if-for-real-2013-11


Chowdhry, A. (2015, January 28). Snapchat's New 'Discover' Feature Has Content From ESPN, CNN, Food Network And Others. Retrieved February 21, 2015, from http://www.forbes.com/sites/amitchowdhry/2015/01/28/snapchat-discover/


Colao, J. (2012, November 27). Snapchat: The Biggest No-Revenue Mobile App Since Instagram. Retrieved February 26, 2015, from http://www.forbes.com/sites/jjcolao/2012/11/27/snapchat-the-biggest-no-revenue-mobile-app-since-instagram/


Constine, J., & Wilhelm, A. (2013, November 19). Reverse Engineering Snapchat’s Size Is Impossible…But Here Goes. Retrieved February 21, 2015, from http://techcrunch.com/2013/11/19/how-many-users-does-snapchat-have


Frasco, S. (2013, September 6). 8 Small Business Marketing Ideas For Snapchat - Convert With Content. Retrieved February 21, 2015, from https://www.convertwithcontent.com/8-small-business-marketing-ideas-snapchat/


Sobal, A. (2013, December 19). What Can Snapchat Do For Your Business In 2014? Retrieved February 21, 2015, from http://www.business2community.com/social-media/can-snapchat-business-2014-0720574


Strout, K. (n.d.). Snapchat for Businesses: Pros & Cons. Retrieved February 21, 2015, from http://breakingeveninc.com/businesses-using-snapchat-the-pros-cons/


Introducing Discover. (2015, January 27). Retrieved February 21, 2015, from http://blog.snapchat.com/post/109302961090/introducing-discover


Snapchat. (n.d.). Retrieved February 21, 2015, from http://en.wikipedia.org/wiki/Snapchat


Number of worldwide social network users 2010-2018 | Statistic. (n.d.). Retrieved February 21, 2015, from http://www.statista.com/statistics/278414/number-of-worldwide-social-network-users/

Contact Information

To contact the author of this article, “What You Need to Know About Snapchat: An Executive Roadmap for Social Media Success,” please email the author at [email protected].     

The mission of the College of Business at Southeastern Louisiana University is to provide educational experiences for personal, professional and intellectual growth, enable the creation and sharing of knowledge to enhance learning and to advance the practice of business, and engage communities through service to positively impact their future. The Accounting and Business programs in the College of Business are accredited by the AACSB International.