Snapchat's parent company, Snap, has made headlines for the better part of the past two weeks since its IPO on March 2. Snap's market value increased by nearly $9 billion on its first day of trading; it's first day pop being bigger than even Facebook's or Google's.
Perhaps you're still not sure what all the fuss is about. Here's the skinny: Snapchat launched in 2011 as a platform to quickly send selfies. Its key advantage was that the 'snaps' disappeared after they were sent. Snap has added more features since then, including lenses that superimpose over the user's snap, and geofilters that overlay brand advertising or the user's location. So Snapchat is making billions from people posting selfies, but the IPO has drawn attention for several reasons. For example:
Today, 158 million people use Snapchat, posting over 2.5 billion snaps (short videos or images) every day. The majority of users are 18-to-34 years old. Users younger than 25 are most active, averaging 20 visits a day and more than 30 minutes a day. Still don't get it? That might be because Snapchat wasn't designed with you in mind. As a 15-year-old stated in a Business Insider interview: "Snapchat is built for digital natives; not for the mobile-first, but the mobile-only generation." In other words, young Millennials might get it, but it's hard core fans are from Gen Z (1996-2009).The bottom line: Snapchat's IPO is a sign of change-changing generations and changing business models. What can your organization learn from the world of snaps? Here are a few tips:
Think about how your organization manages its employees and markets to clients and consumers--is it ready for the Snapchat generation? Ready or not, here they come.
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