Snapchat rolled out a new revenue stream on Monday which allows users to create their own filters for a small price. Originally introduced for public places, the demand for personalized filters grew within the community and the company found a way to cash in on it. According to the company’s website, the process is fairly simple:
- Design — Use your favorite image editor to create a filter. We’ve also provided some templates that are compatible with Photoshop and Illustrator to get you started 🙂
- Map — Pick a geofence where your filter will appear, then choose the time and dates you want your Geofilter to be available.
- Buy — Submit your Geofilter. Our team will quickly review it and, assuming all is well, get it up and running.
As an outsider who doesn’t use the app, I’m impressed they were able to find a way to generate revenue off of something its users have been clamoring for. While the $5 initial price tag is subject to change based on the duration of the filters usage, it’s a brilliant way to capitalize on an app that can be downloaded for free. Companies who plan on advertising through the app will undoubtedly endear themselves to users with creativity and a unique approach to the future of advertising. The story itself caught my attention because I’ve been following the strategy of Snapchat and how it plans on capitalizing off its success and growing user base. As more people are moving away from Twitter, it appears Snapchat is positioning itself for growth and innovative strategies to cash in on its status of being the ‘it’ app at the moment.
I’m dating myself, but it reminds me of the days when companies sold ring tones – usually snippets of songs – back in the early 2000s. Who would have thought that so many artists and mobile device companies could have earned a large amount of money over something so simple? While it didn’t last long and users found ways to create their own ring tones, it reminds me of the latest creation from Snapchat. While it may not last or be very successful in the long run, they are finding a way to generate revenue and making themselves more attractive to investors early on. Continuing to find ways to generate revenue will be their toughest obstacle yet, but if they’re able to make money off of allowing users to create filters then I think they will be just fine moving forward.