Name: Here's How Snapchat Makes Its Money
Uploaded: 2016-12-22T15:23:55.000Z
Duration: 1 min 47 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

If you're over 30, you may have chosen to ignore Snapchat, thinking it's more an app for teens

Modal verbs - B1

but it might be time to start paying attention

The app company plans to hit public markets in 2017, with a reported valuation of 25 billion dollars

That would make it the biggest IPO star since Alibaba in 2014

Don't be embarrassed if you don't know Snapchat

One of the biggest differences with Facebook and Twitter is that a snap will disappear after at most 24 hours

The app lets you take photos or short videos with your phone

Despite being a relatively young company, it ranks just behind Instagram and Twitter

70% of 18 to 24-year-old smartphone owners use the app

Its popularity is even growing among the older, 30+ crowd

The company makes its money from video ads and branded filters that are interspersed throughout the app

And thanks to Snapchat's young and coveted millennial user base

advertisers are willing to pay top dollar to get their promos in front of youthful eyes

With revenue estimated to reach 1.7 billion dollars in 2018

Its reported 25 billion dollar valuation is 25 times its expected 1 billion revenue next year

Compare that to Facebook, which went public in 2012, it had a valuation of 19 times its forward revenue

And even that valuation was considered outrageous at the time

Snapchat is hoping that its popularity isn't as fleeting as the life of one of its messages

Whether it deserves a huge valuation depends on how long users keep snapping

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Here's How Snapchat Makes Its Money

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