Since Instagram decided to move against snapchat a few weeks ago by releasing their new “story” feature, I have been waiting impatiently to see what would snapchat do about it… because in case you didn’t get it, that was a big fat left hook from Instagram (Zuckzuck) aiming directly at the little ghost’s face. So let’s talk a bit about that first. Mid August
Instagram announced its newest feature: Instagram Stories. Like Snapchat Stories, Instagram’s new feature allows users to post photos and videos that disappear after 24-hours. While this new feature gives an amazing opportunity to well established profiles to shine through compelling daily stories, and offers to small businesses a new way to create content on the same channel, it compete directly with the hottest photo/video messaging app in the world, Snapchat.
Snapchat's future is very bright
The Venice, California-based company is debuting its first hardware, $129.99 video-capturing sunglasses, and renaming itself as “Snap Inc.” to reflect its new direction, the company’s CEO and co-founder Evan Spiegel told WSJ Magazine. Snapchat has been testing early versions of the gadget, called “Spectacles,” since early 2015, and the company plans to sell a limited number of Spectacles this fall. Snapchat’s new name reflects that the company is no longer only a social media service, Spiegel told WSJ.
So now, users can record video on Spectacles by tapping a record button on the hinge of the frames, which contain a camera. Spectacles can record videos of up to 10 seconds, with each tap recording a new clip. The glasses’ camera has a 115-degree-angle lens, which is wider than a typical camera and similar to the human eye’s field of view. The videos can be posted wirelessly to Snapchat and delivered to the user’s smartphone. To start, Snap plans to offer Spectacles in one size and three colors: coral, black and teal. Spectacles bear some resemblance to Alphabet Inc.’s Google, which largely flopped among consumers.
Snapchat, which has 150 million daily active users, most recently closed a $1.8 billion funding round in May, when investors valued the company at about $18 billion. Snap is forecast to reach nearly $1 billion in global advertising sales in 2017, up from an estimated $366.7 million in revenue this year, according to a recent report by forecasting firm eMarketer. By comparison, eMarketer estimates that Facebook FB -2.43%-owned Instagram, with 500 million users, will generate $1.5 billion in global ad sales this year and $2.8 billion in 2017.
Snapchat launched its ad business in mid-2015. The company sells ads in its “Discover” and “Stories” sections, as well as through paid geo-filters and lenses. Snapchat’s Discover section, which features articles and video from more than a dozen publishers such as CNN, iHeart Radio and Cosmopolitan, generates nearly half of the company’s total U.S. ad revenue