Tuesday 31 January 2017

What will Snap's IPO tell us about the Snapchat producer? — Quartz

What will Snap's IPO tell us about the Snapchat producer? — Quartz: "It’s been reported that the company planned for revenue between $300 million and $350 million in 2016, which would put it at about 0.05% of what Facebook generated last quarter.

Look for the filing to provide some information on where Snap’s revenue comes from, and the split between its advertising business—the video ads it sells that run between Snapchat stories, as well as the sponsored graphics and filters it sells for users to overlay on their snaps—and any other sources of income, such as Spectacles. Few advertising partners are spending large portions of their advertising budgets on Snapchat as of yet, according to Mashable, with many just spending “hundreds of thousands of dollars”—rather than the millions spent on Google, Facebook, and traditional advertising channels.

Although its IPO would value the company (paywall) at about $25 billion, Snap is likely not pulling in a lot of cash right now. " 'via Blog this'

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