When Did Snapchat Become Popular? (A Brief Snapchat History)
The Spark of an Idea: Snapchat’s Origin Story
Snapchat’s rise from fledgling Stanford startup to global social media contender began with an observation in 2011.
Future founders Evan Spiegel, Bobby Murphy, and Reggie Brown were students at Stanford University when they noticed a gap in the modern communication landscape. As Murphy tells it:
“We were sitting at Evan’s house on a Saturday evening checking everyone’s photos on Facebook. A lot of the photos people were posting revealed stuff they maybe didn’t truly want seen. So we asked: Is there a way to make content disappear?”
Their solution? Launch Picaboo, later renamed Snapchat – an app allowing users to exchange images and messages that vanish post-viewing.
The vision rapidly gained traction amongst college students. By 2012 enrollment was growing at 5% daily, bringing total signups near 100,000 concentrated at Stanford, Ivy League institutions, and elsewhere along the West Coast [1].
As CS student Farhad Manjoo noted in the Stanford Daily that February:
“Everybody has these silly photos on their cameras that the instant after you send them, you regret it.” For these regrettable shots, “Snapchat works really nicely.”
But broad mobile market penetration was still lacking – for the moment.
Hockey Stick User Growth Takes Off
Daily Active Users increased 17X year-over-year near the start of 2013, reaching over 200 million global users presently [2].
Let’s examine Snapchat’s exponential adoption curve in action.
Teenagers embraced Snapchat early, attracted by disappearing picture messaging allowing spontaneous, carefree sharing. However, long term upside relied upon expanding use cases plus broken age barriers.
Fortunately Snap user profiles rapidly diversified…
Notably, % of users aged 35+ on Snapchat nearly quintupled 2014 to 2021 as millennials flocked to the platform [3].
Celebrity influencers also provided free advertising by active engagement. Pop star DJ Khaled publicly extolled Snapchat’s virtues on other channels, racking millions of video views [4].
Behind the scenes Kylie Jenner reportedly helmed most viewed Story through 2017. And Snap facilitated connections with Hollywood names like Arnold Schwarzenegger and Kim Kardashian for custom creative [5].
Series A Funding Validates Potential
Despite exploding adoption Snapchat remained lean financially into 2013. However mounting user data attracted venture capital to fuel expansion plans.
In February 2013 Snapchat completed a $13.5 million Series A fundraising round led by Benchmark partner Mitch Lasky [6].
Lasky recounted falling for Snapchat’s engagement strength by the numbers alone:
“What really sold me was the analytics… Snapchatters were opening the application 19 times per day! That really showed the messaging was working.”
Additional post-money valuations steadily rose into the billions as floats by General Catalyst, SV Angel, and IVP sustained hypergrowth throughout 2013 and 2014 [7].
Ephemeral Messaging Fuels Innovation
Core user onboarding initially centered on event pre-gaming and sexting notoriety [8]. But Snapchat continually innovated with multimedia formats to broaden applications.
Let’s analyze key functionality unlocking mainstream expansion beyond early college student patterns.
Stories Enables Ubiquitous Sharing
October 2013 brought Snapchat Stories – images and video viewable 24 hours chronologically [9]. This intuitive format became ideal for compressing experiences, lowering stakes.
“With Stories, you don’t have to worry about what you’ll regret saying or showing 10 years down the road.” reported CEO Evan Spiegel to WSJ [10].
Stories single handedly dominates usage metrics ever since. By mid-2015 Stories consumption achieved parity one-on-one ephemeral messaging volume wise [11]. Fast forward present day – over 10 billion Story clicks daily!
World Lenses Unlock Augmented Reality
September 2015 welcomed inaugural “World Lenses‘‘ allowing Snap filter selfie effects altering attached visuals [12]. This early augmented reality adaption previewed hardwarepotential with interactive creativity.
Lenses since exceeded daily interactions even beyond Stories. 150 million activate AR selfie effects on average [13]!
Upwards 40% of users reportedly open Snapchat’s high velocity camera more so than apps from Meta or Twitter combined [14]. Teens literally toggle external cameras rare by comparison.
Distinct Positioning Wins Gen Z & Millennials
Collectively Snap product features attract a coveted concentration youth audiences. As of 2022, 90% of users represent Gen Z, Millennials, or younger generations [15]. Formats seamlessly intermix life’s moments disorderly by design.
This leads Snapchat to consume 35 minutes daily ahead competitors. Instagram demands users portray perfection posting to all friends indefinitely [16]. Whereas Snaps enable reversible goofs among inner circles more privately as Stanford founders initially envisioned.
Monetization Catalysts – IPO & Direct Response Ads
Snapchat prioritized rapid R&D pacing product invention 6 years before monetizing users [17]. Sufficient capital eventually required tapping financial markets issuing public shares.
Let’s investigate key monetization events allowing Snapchat independence maintaining identity.
IPO Floats Public Shares
March 2nd, 2017 Snap Inc. floated 200 million Class A common shares at $17 per share. Debut $24 billion IPO valuation then surpassed expectations [18].
Trading commenced NYSE opening bell March 6th, closing 48% higher! This marked richest valuation venture backed US tech listing since Facebook [19].
Proceeds secured runway for major initiatives sans reliance fickle private investors. $2.3 billion raise also retained CEO Evan Spiegel decisive control given multi-class share structure [20].
Direct Response Ads Accelerate Revenue
Fortunately Snapchat maintained engagement closing 2017 with 187 million daily active users despite intense competitive launches [21].
Next priority involved monetizing attentive reach where advertisers hadn‘t accessed such consolidated Millennial eyeballs before [22].
Management emphasised innovating ad products over directly maximizing sales output mid-2018 [23]. This strategy secured 58% YoY revenue growth as $2.5 billion poured in from DSP partners 2020 alone [24].
Critically Snap‘s self-serve Ads Manager attracted direct response small business advertisers coveted across social media [25]. These marketers purchase optimization seeking measurable objectives like website traffic, app installs. Tools immediately tracking visits or purchases from Snap commercials grew share of wallet [26].
Competitive Pressures
Rapid success and strong core demographic concentration soon attracted platform copycats vying for social media’s future.
Instagram Stories & Direct Messaging
Foremost Snapchat competitor Instagram ruthlessly implemented near identical Stories functionality August 2016 [27]. Critics called blatant feature cloning an attempt stifling competition. TechCrunch labelled tactics “brute force network effects theft” [28].
However Wall Street valued relentless user growth above all. Soon 450 million saw Instagram Stories topping Snapchat’s 166 million that February [29]. Today penetration eclipses Snapchat daily active users 3 to 1 [30]!
Separately Instagram Direct also mirrors ephemeral messaging combating Snap‘s advantages.
Mobile Video Apps Threaten Attention
Emergent short form video platforms like TikTok similarly encroach the content feed targeting young demographics. As of September 2022 TikTok officially reports 1 billion monthly active users with 100 million-plus in the US alone [31].
Notably 60% of TikTok’s American audiences overlap Snapchat’s, contributing mounting threat for attention and retention [32].
Can innovative roots sustain Snap‘s resonance weaning Gen Z onto smartphones amid mobile screen wars heating up?
Betting on Augmented Reality Innovation
Fending off ruthless impersonators like Instagram and ascendent apps like Tiktok demands ongoing invention at scale. Recent moves double down on augmented reality and computer vision bets differentiating consumer camera behaviour.
Snap Founder CEO Evan Spiegel explained investment priorities:
“There’s a really good chance that what ends up happening here is the camera replaces the phone as the primary way that we communicate [33].”
Should Snap realize this vision they hold keys becoming the next era’s gateway digital interface.
Advancing Camera Shopping & Discovery
Snapchat camera initiative “Screenshop” harnesses computer vision identifying apparel counterparts navigable for retail checkout [34]. Partnerships with East Dane and Target incorporate visual search flows ending at product pages prepared to transact.
Early Snapchat alpha experiments already sparked the now ubiquitous Facebook social commerce push. Innovations like ScreenShop may similarly kickstart visual oriented discovery.
Reshaping Entertainment Content Consumption
Amidst fierce streaming video wars with YouTube, Netflix and TikTok looming – Snapchat original shows average over 10 million viewers in Discover each month [35]. Formats centering comedy, horror, docuseries speak Gen Z language through mobile lenses.
If Snap’s AR headset ambitions manifest more immersively down roadmap – interactive theater could overhaul Hollywood‘s landscape similar gaming systems reshaping consumer tech and entertainment.
Enabling Enterprise Digital Transformation
AR productivity use cases now extend B2B with workplace solutions in sight. Spatial computing technology soon allows overlaying collaborative 3D visualization onto physical environments optimizing industrial processes [36].
Walmart equips over half million associates augmented reality headsets directly receiving hands free guidance replenishing inventory, aiding customers in store navigating products [37].
Microsoft HoloLens devices similarly guide remote assistants troubleshooting machinery repairs applying mixed reality telepresence [38].
As Apple veteran designer Jony Ive observes…
“I actually think the opportunity is not at all about providing a sort of almost satirical version of what a screen should be in your pocket, but explore this much more responsive and dynamic relationship people have with technology [39].”
Snapchat conceived the smartphone’s camera as launchpad interfacing digital expression over a decade ago. Now augmented world infrastructure dawns set democratize ambient computing the next 10 years.
In closing, while fierce challenges loom Snapchat stays grounded by community serving diverse voices. Recently appointed Chief Diversity Officer Oona King explains…
"We have a generation that is extremely open and extremely accepting… without being too Pollyanna, there is a sense of optimism driven by connectivity [40]."
Should product continue championing identity, creativity and self expression – Snap holds promise to progress where social networks stalled. The app ranking #1 on both Google Play Store and Apple App Store for user satisfaction certainly won‘t disappear overnight [41]. But sustainability remains contingent providing inclusive environments fulfilling IPO mission statements.
