Many prefer to work in multinational companies over startup. There are several reasons such as a financially strong, working environment, popular clients and much more. MNCs are those organisations which are based in distinct parts of the country for company expansion. If you’re working in a startup switching to MNC will improve your career growth. Also, getting a job at MNC will make you feel secure. Among all the companies, IBM is one of the most popular businesses in the world.

Introduction to IBM

IBM stands for “International Business Machines”

IBM is popularly known as a global technology company. It provides excellent hardware and software services. Currently, IBM is extending its services and expanding its business through cloud-based services.

The company was established in 1911 by Charles Ranlett Flint. At first IBM was called a “Computing-Tabulating-Recording Company”. After 1924 they renamed it as IBM. The company is more than 100 years old. Also, it’s said that the organization had to adjust to multiple technological trends from the past. IBM is giving new wings for its customers by offering cloud and data-driven technology.

IBM revolves around different technologies such as cloud computing, computer software, artificial intelligence, computer hardware and a lot more.

In this post, let’s discuss IBM’s business model and how the company is making money. No more delay any further, let’s get started…

IBM business model

IBM is one of the leading brands when you discuss top tech companies that existed across the globe. Since there are multiple services provided by the company, the revenue is also increasing year by year.

The company is the go-to platform for many. As IBM is providing various capabilities, it’s offering an integrated platform and excellent solutions to its clients from the origin of the company. As mentioned earlier, IBM is offering excellent services and solutions to the client, this is making IBM as reliable and dependable. Currently, there are over 175 IBM branches located around the world. There are more than 400,000 people who are working for IBM.

Key activities of IBM business model

IBM business model is mostly involved in two major business activities such as

• Research and development
• Operations

Now, you’re aware of the IBM business activities, the next thing you should know about what are the business segments that help IBM to channelize, there are five types such as

• Global Technology Services (GTS)
• Software
• Global Business Services (GBS)
• Global Financing
• Hardware Services
• Cloud & Cognitive Software
• Systems

Let’s discuss these business segments and understand their roles and responsibilities in IBM business model

Global technology services

A large business will ensure that there are several financial services. Therefore, IBM is also providing various services from different industries such as healthcare, technology, retail, telecommunication and more. Also, IBM is having outstanding IT infrastructure, this could be the key reason for the company to serve the clients and customers to provide good results.

Also, IBM is using a few services like outsourcing, technology support, integrated technology and other services. These are a few excellent things that are offered by IBM to its customers and earning good revenue.

Software services

Good news for the one who is looking for software assistance. IBM is offering an exciting software service. The company is offering the best operating system with middleware. Sounds amazing right!!! Here the middleware service offers software layers. These are used to connect all the devices that are available in the company. Also, IBM provides support for the people who are looking for software related solutions.

The popular software service introduced by IBM is “Watson”. This is a top-rated cognitive computing solution that is available for commercial use. The software has extraordinary features. The software can interact in natural language and processes big data.

There are few key software introduced by IBM are

• WebSphere
• Information Management
• Rational
• Mobile
• Tivoli
• Social Workforce

Global business services

As mentioned earlier, IBM is offering its service around the world. These amazing services which are offered globally are considered as an advantage for the company to grow. While discussing IBM services, there is no surprise consulting and system integration are included in it. On the other hand, there are other services offered in the IBM business model that are helping to generate good profits for the organization.

Let’s discuss consulting and application management services offered by IBM

IBM consulting includes amazing services such as expertise on business strategy, finance, marketing, technology, operation and supply chain.

Application management services include application management, maintenance, support services for packaged software, custom and legacy application.

Global financing

While discussing financing options in a flexible manner, IBM business model is the perfect option. IBM offers a financing solution around the globe. It includes a lease, instalment payment solutions, etc. The loan financing option is the best way to earn good profits for IBM.

The company is offering three major services such as client financing, remarketing and commercial financing. These are the key reasons that many people have to opt for IBM. The company has earned $265 million through global financing.

Hardware services

So far, we have discussed software services offered by IBM. On the other hand, IBM is offering excellent hardware services that are included in their business model. The company is helping people who are looking for hardware issues. These hardware services provide excellent solutions in the best way.

IBM offers a storage solution on clients servers. Also, the company is providing a few installation services for their clients. While installation, there might be complications involved, IBM support team will help during installation while deploying the hardware products. Hardware services provided by IBM are generating good revenue for the business.

The company offers technologies for data centres, data storage, packaging solutions and semiconductor technology.

Hardware service of IBM business model is responsible for offering a few key solutions that are related to microelectronics, system X, system Z, flash storage and power systems.

Cloud & cognitive Software

This is one of the popular services offered by IBM. The cloud and cognitive software work in an effective way as they deliver integrated and secure cloud to the people. On the other hand, it offers data and AI solutions for them. Over 32% of IBM’s net revenue is generated through this segment.

Systems

System segments offer high-standard infrastructure platforms in order to meet new requirements of enterprise artificial workloads and hybrid multi-cloud. Here the system offers advanced semiconductor and excellent system technologies to its customers. IBM has earned more than $1.9 billion in 2020 through systems.

How does IBM make money?

While discussing IBM business segment, you’ve come to know how these services are helping people and good income for the company. IBM has generated more than $35.7 billion until June 30, 2020.

The above-mentioned business segment of IBM is the foremost player behind generating good revenue.

Let’s give a glance look at how much amount of money does IBM earn money from its segments

• Global Technology Services is responsible for earning over 1/3rd of IBM revenue.
• Global Business Services helps to generate over 18% of revenue in 2020.
• Software services allow the business to generate over 1/4th of net revenue.
• Hardware service has earned upto 15% of the net profit in 2020.
• Global Financial assists the organization is generating $265 million of revenue.
• System segment has earned over $1.9 billion in revenue.
• More than 32% of IBM net profits are generated from the cloud and cognitive software.

The key sources of revenue of IBM business model include hardware sales, annual outsourcing, SaaS, installation, maintenance and more.

Conclusion

Many people dream to work in multinational companies. Among all the MNC, IBM is the favourite place for many of them. As there are multiple opportunities available at IBM. Many people want to know the secret of how IBM is earning money. Hope this article has provided you with the right answer. The article has mentioned and detailed outline regarding IBM business model and how the company is generating good income. Being an established and top technology company in the globe, IBM business model is pretty inspiring for the one who is looking for better ways to make money in this field. IBM has earned $35.7 billion until June 30, 2020.

Where would you stay if you go to a new city for a vacation or on a business trip? In a hotel right? But how would you know if the hotel you are going to stay at is going to provide good service or not? How would you choose a good hotel if you have never been to that city to know which ones are the good ones? And above all the price of the hotel room also matters. It is not possible that everyone could afford to go to a five-star hotel where they will surely get a great room and good service. Most of the people who travel are looking for cost-effective options. Because they don’t want to spend too much money as they will be using the hotel room only to rest and keep their luggage. So it’s definitely a challenge to find good hotels.

Another great thing about the current world is that you don’t have to go to a hotel in person to get a room. It has become quite easy to book a hotel in today’s world. You don’t even have to call the hotel for a reservation, you can simply book the rooms you want using your mobile. There are quite a few mobile applications that allow you to do this. More and more people are using these applications as they find them very useful. There are many advantages to using an application to book hotel rooms. The first thing is you don’t have to research hotels as there will be information about them. You will have the list of the best hotels at your dispense. The main reason is it saves a lot of time, energy and money. Today’s article is about one such company called Oyo rooms.

What is Oyo?

Before knowing about the business model of Oyo and the ways in which it makes money it would be great to know something about the company. Oyo rooms or Oyo is a hospitality chain that is based out of India. The founder of this company is Ritesh Agarwal. But Oyo was not the name of the company when it was initially founded. When it was first founded it was known as Oravel stays. This enabled people to list their hotels and book hotel rooms for people who are on a budget. After that, the founder has stayed in a lot of hotels all around India and decided to change a few things. It was in 2013 that he decided to change the name from Oravel to Oyo. Oyo has undergone a lot of changes since then. They helped Oyo to grow their popularity and expand their business.

Oyo has decided to partner up with hotels to give their customers the same experience in all of the hotels that they are associated with. In the beginning, the company used to lease a few rooms but this has gradually changed. In recent years Oyo rooms have gained a lot of popularity. This is mainly because they have become the first option for youth to book hotels across all the cities in India. It happened mainly because of the steps taken by Oyo. Oyo does not own any hotels by itself. What it does it partners with hotels and renovates them. It does this so the hotels meet their standard of services. After it is done the hotel is listed under the brand name of Oyo. One of the main reasons it has been successful is because of the standard of services they provide to their customers around the world.

Business model of Oyo

Currently, Oyo rooms have one of the largest networks of hotels around the world. In the span of seven years, it has managed to expand to many other countries. In India alone, it has nearly half a million listings in more than 5000 cities. Today this aggregator is present in several countries like Nepal, China, Malaysia, Philippines, Japan, Indonesia, Saudi Arabia, Vietnam, US, UK, and UAE apart from India. To be able to expand a business in such a short span of time is really commendable. So let’s take a look at the key components of the business model.

Hotels

If you are a hotel aggregator then the first thing you need is the hotels that are willing to partner with you. Oyo has been very successful in convincing hotels to get associated with them. This is very impressive because it started in a country like India where no one has ever heard of a concept like this before. It goes for both hotels and customers. The great thing about this is that they not only list the hotels on their platform but they are also willing to modify them so that they meet their standards. 

This is one of the best moves by Oyo because they will not only be partnering with the hotel but they will also be helping them to improve themselves to get more customers frequently. There will be many hotels that will be old which are out of business most of the time. Since they run in losses they cannot renovate themselves. Oyo not only renovates those hotels but also puts their brand name beside it. This is a great way of promoting the hotel to improve their businesses. Many hotels have benefited from this.

Oyo Townhouse

This is one of the newest additions to the services that are provided by Oyo. Oyo townhouses are built to give the customers a completely new experience of staying in a hotel. It aims to give the customers space and comfort they always look for. These townhouses are aimed to attract and facilitate the needs of millennials. So you will have access to WiFi connectivity and TVs with a Netflix subscription. Not only that you can also shop when you stay at these townhouses. Currently, there are more than 250 Oyo townhouses

Oyo vacation homes

These are great options for people who want to rent homes during vacation. Oyo vacation homes are one of the largest and top vacation rental management companies in the world right now. 

Oyo Silver key

If you are traveling for business then you would want to stay in hotels that take care of your requirements. This is exactly what the Oyo Silver key is all about. It is an exclusively designed service that is aimed at business travelers. If you travel frequently due to business then you will definitely love the Oyo Silver key as they provide you with all the facilities you need to make your business trip successful.

Oyo Home

These are the rooms that you can rent in the local neighborhoods of a city. You can rent homes, apartments, cottages, rooms that are present in various neighborhoods in the city. One does not have to worry about the services as these places meet the standards of Oyo. Oyo makes sure that these places have all the facilities that you look for in a place. These are great if you want to rent out homes for your family. 

Oyo Life

This service is also targeted towards millennials. It aims to provide millennials with homes that they can rent. They are really great as they don’t provide options that are too costly. All of their listings are affordable and well managed.

How does Oyo make money?

With a lot of services to offer Oyo has more than one way to generate revenue. Since it is a hotel aggregator it is not hard to predict where most of its money comes from. Let’s look at the ways in which Oyo makes money.

Commissions from hotels

This is something that is quite easy to understand. The primary source of Oyo’s revenue is the commission it gets from the hotels. Each hotel pays a part of its income that is generated through Oyo. Oyo charges 22% of the total amount as its commission. 

Reservation fee

This is the fee that is paid by the customers who stay at the hotel that they booked through the platform. When a customer books a hotel through Oyo they will pay them a fixed amount to the company as a fee. This fee depends upon the hotel that you are going to stay in.

Subscription fee

Oyo has a premium service called Oyo wizard. One has to pay a subscription fee to avail of its services. This subscription provides lots of advantages for the people who get it. They will get lots of offers, services, and discounts that other users do not get. 

Advertisements

As a platform, Oyo runs a lot of ads. It charges money to run the ads of other businesses. Not only that it also charges money to advertise Oyo rooms. 

Consulting services

Since it has been very successful in growing its business it also offers consultancy services to other similar businesses. Many hotels, clubs, etc approach Oyo rooms to get help from them to improve their businesses. In turn for their services, Oyo rooms receive payments. 

Conclusion

This is the business model of Oyo rooms. It is an aggregator business model. You can know about the business models of various companies on Postling. If you want to know about the business model of an online food delivery service then you can check out the business model of Zomato.

In the 21st-century people have become highly busy. Don’t you agree? With more and more people joining the workforce and working towards their better future, their demands are also increasing. They need everything quick. Yup, you heard it right. Since they have a time constraint and put their work first, from shopping to watching movies they are doing everything from their couch.

Earlier people would have waited in lines to eat at their favourite restaurant. But now, unless and until it is a special occasion, people prefer ordering their food home. You see, it saves them from the effort of going out and standing in a queue to enjoy good food. While they receive the orders they can work on the other things.

Not only food, but people are also now spending their rest days at home and preferring online shopping. Yup, why do you think Amazon is becoming more popular with each passing day?

In this article, you will be knowing about a promising startup like Uber. Yup, you heard it right. With the title, you would have already understood that in this article you will be knowing about the Postmates business model and how it makes money. 

The core idea behind this quite simple. It delivers everything their customer’s order in their city within an hour for a small fee. Amazing idea, right? There are times that you’re super busy but you cannot go out to get the groceries or anything else. In such instances, you can rely on the Postmate to deliver your products without spending a lot of money. Not only delivery it also offers to pick up too. Now you see why their idea has become successful and brought them good profits. 

Wanna know more about Postmates? Then stick till the end of this article. 

Postmate Business Model 

Since its inception in 2011, Postmate has increased its network. Now they deliver around 2 millions products a month. Can you believe it? Currently, this company operates in more than 385 cities with around 2,00,000 delivery fleet and more than 250,000 partners. The thing about this startup is that it has more than one customer segment.

Other than that one thing you must understand is that it works more on a partnership model. Yup, they find it more beneficial than the employee model. If you want to understand their business model first and foremost you must understand their customer segment.

Their customer segment will provide you with a better understanding of the Postmate works. They have 3 tier customer segment.

Merchants

Customers

Postmate

Merchants

The merchants for the Postmate are the grocery stores, restaurants and all the other store that form a partnership with Postmate. Merchants will be benefited through this platform. Wondering how? If they partner with Postmate app they will naturally be on the radar and when customers need services they are offering, these merchants will be the first option. So the exposure for their business increases and they can grab the attention of more and more customers and improve their business.

Also, it saves them delivery cost, you see they dont have to separately hire a delivery person to deliver goods as Postmate handles it. So they save costs. They only have to pay commission to the Postmate, no other charges involved. The commission would range from 15 to 30%. Also, remember that commission percent depends on the contract between the merchant and Postmate.

Customers 

They are the end people, who seek the services of the Postmates. From grocery pickup to ordering items they usually use Postmate to get things done. They usually pay a small amount to get things delivered to their doorstep. 

Postmate

Dont confuse the Postmate with the platform name. Postmate here is the delivery personnel who partner with the Postmate to delivery goods to the clients. They work based on their own timings and schedule. Postmate receives 80% of the delivery fee for every order delivered. And the company keeps the remaining 20% of the fee. They deliver anything within the city limits within a small time at a reasonable fee. 

How do Postmate works?

As of now you have understood about the Postmate and their customer segment it is time to learn about how it works. They manage a chain of human couriers who deliver anything within city limits to the clients on-demand. But if you think the customers can only order from the partner merchants then this where you’re wrong. Postmate allows customers to order any necessary items from the non-partner stores too. 

The delivery model of Postmate includes five steps.

Browse

This platform has almost all the stores in the city listed on it. Although the partner stores are given more priority it doesn’t mean that you cant order from anyone else other than them. Users can browse through the stores in the Postmate and order anything they want through the app. 

Pay

One thing that customers must remember is that the order will be delivered until and unless the payment is made. Yup, you heard it right. They have to pay the price mentioned by the Postmate. The price includes the product price along with the service fee and the delivery charges. 

Order initiated

As soon the payment is made by the customer. The nearest Postmate will receive the notification relating to the order placed. They will shop for the order and delivery it using their vehicle.

Track 

The customers can track their delivery to know where it and when it will reach their doorstep. They will receive a notification as soon as the Postmate goest to the store to purchase their item. From that point on they can track the delivery.

Delivery successful

The last and final step of this delivery model is that the delivery of the product to the customer. Since they have already made the payment, all they have to do is receive the order and check whether it is what they want or not. Once they check and made sure everything is ok. They have an option to tip the Postmate and give them good ratings. The platform will not take any share in the tip, it solely belongs to the Postmate. 

The pickup model is also quite similar to the delivery model. It was recently released by them to gain competitive advantage. The idea behind this model is that the customers can order ahead of time. Yup, you heard it right. You can take the Postmate help to order ahead of time at your favourite restaurant or store. If you want to understand then check out these steps.

Order

With Postmate the customers can place their request ahead of time so that order can be ready for you by the time you reach the store. Also, one thing to remember is that these pick-orders dont carry any extra fees.

Track & Reach

Once your order is placed you can track the order and get the real-time updates about the order. The customer can go to the store when their order is ready. They dont have to worry about standing line as they can just reach the store and take their order.

As of now you have understood Postmate works are you not curious to know how it makes money? Yes, then let’s continue.

How does Postmate make revenue?

As you have understood about the Postmates business model, it is time to learn about its sources of revenues. Here they are

Fees

As you already know that Postmate charges their customers a fee to pick up their order. That is one of the sources of income to this platform. Until and unless the customer makes their payment the order will not be initiated. So there are different types of fees that Postmate collect. If you want to understand the revenue sources of this platform then you must check out each of these.

Service fee

While calculating the price of an order the Postmate includes both the delivery fee and service fee. So this is also one of the types of fees that are levied by the company. It is a variable percentage fee. Which is usually anywhere between 9%-19.99%. This is charged on each and every order. Also, this fee is not shared by anyone with Postmate. It is used to make sure that the company and its operations are running smoothly.

Delivery fee

As you already know along with service fee delivery fee is also included in the basic price of the order. It charges a delivery fee of $3.99 for their partner merchants. But one of the best things about this platform is that even if you’re not purchasing from the partner merchants, you can still order things from non-partner merchants too. Also, they naturally promote their partner merchants more than non-partner merchants.

The difference can also be felt on the delivery fees too. Yup, when you order delivery from partner merchants, you know that it is $3.99. However, in the case of non-partner merchants, they charge between $5.99- $9.99. As you also know that they pay 80% of the delivery fee to the Postmate and the company only gets 20% of the delivery fee. However, this is also one of the main sources of income for them as their business model is mostly about the deliveries. 

Small cart fee

As you see the point of this platform is to deliver orders to the customers at a smaller fee. However, if they charge the same for small order or a huge order it will be unfair right. So if you’re cart value is less than $12 then you have to pay $1.99 as a small cart fee. The company says that they charge this fee to make sure that customers always get what they want.

Surge pricing

Like other startups that are doing amazing, this platform also uses the dynamic pricing algorithm. To put it in simple words, surge pricing. Yup, everyone would have experienced this on a busy day trying to book an Uber. Postmate also has surge pricing. Whenever the deliveries they have to make exceeds the supply of couriers. So at the times of rush or busy hours, the Postmate will make good money. 

Postmates unlimited

Postmates have also incorporated the subscription-based business structure too. Yup, you heard it right. This unlimited subscription service offers many benefits to users such as you will be eligible for the free delivery if you order value exceeds $20. If you think that it is the only benefit that comes with it then you’re wrong. There will be no surge pricing, you dont have to worry about minimum basket fee.

Lastly, you dont even have to worry about paying service fee when you’re ordering from the partner merchants. This strategy not only helps them in getting a loyal customer base but also increase their revenue. As you see if you’re someone who is regularly using the platform to order thing it would be beneficial subscribing to this plan.

Commissions 

Partnering with the partner merchants opens the door for both the company and the merchants. The partner merchants get more orders and they dont have to worry about delivering as the Postmate does it for them. As you see the company charges commission from the partner merchants, they have different contracts with different merchants. The commission usually ranges between 15 and 30% on the pre-tax amount of the product. But one thing to remember is that it varies based on the contract they signed.

Partnerships

The Postmate also has an API. yup, you heard it right. With this API the apps can include their local delivery platform into their app. Many businesses are partnering with the Postmate to deliver their couriers. So you can note that this is an excellent source of revenue. Some of the renowned companies that are using this API are Walmart, Instacart, Starbucks, etc. 

Wrapping up

Postmates is one of the most brilliant ideas that has seen the light of the day. And it has seriously flourished and has been on the path towards success since its foundation. Hope you have understood about the Postmate business model and how it makes money. If you’re interested in knowing more about such business models you can check out other articles in Postling. 

How much time do you spend on your mobile every day?

“Almost 4 to 5 hours”

What’s the first thing you open on your mobile when you wake-up?

“Snapchat”

It’s not just you, everyone accesses the Snapchat application on their mobile in the morning. All they do is check their friend stories, capture pictures and discover pages without hassles.

What is Snapchat?

Snapchat – The fastest way to share moments!!!

Snapchat is the leading social media app founded by Evan Spiegel, Bobby Murphy, and Reggie Brown. They are former students at Stanford University. The application was launched on Sep 6th 2011. Snapchat is available for Android and iOS devices. The core concept of Snapchat is that pictures, messages or videos you send, automatically these are available for a receiver at short periods of time.

No matter whether you’re a teen or adult, you might know about “Snapchat App”. It is one of the best social media applications available in the market. Simply put, Snapchat is the best application for kids and teens. Since the app has everything that youngstar want. This is the perfect place to share moments and make them look amazing.

Unlike other social media channels such as Facebook, Instagram and Twitter, Snapchat records and broadcast your activities and everything you do. Simply put, Snapchat is a mixed bag!!! Users can capture beautiful and funny pictures, send stories, connect with friends, follow new pages, chat and more. On the other hand, Snapchat provides excellent stuff for all age-groups such as news, games, quiz, puzzles, entertainment, video-editing, capturing innovative pictures and more.

Benefits of Snapchat

There are various benefits of using a Snapchat application for individuals and business. Many small and large businesses are using Snapchat to advertise their products or services and increasing their revenue.

• Best platform to interact with customers
• Attract new followers
• Fun and exciting way to engage with target audience
• Show the target audience that you’re real
• Launch your new products or service
• Maximum reach
• Engaging ads
• Easy to get started
• Low maintenance
• No technical knowledge is required to handle Snapchat account
• 3rd most used social media channel

Snapchat – 2020 Performance

Let’s discuss how Snapchat has performed in 2020. According to a recent analysis, Snapchat reported 238 million active users every day at the beginning of 2020. Compared to 2019, the number of users will increase by 20% in 2020. It is expected to reach 363 million by the end of 2023. The revenue generated by Snapchat in 2020 is $462 million. It is accounting for 44% growth compared to 2019. 

The daily active users at the beginning of 2020 have surged by 20%. The active users are mostly from Europe and North America. In the first quarter period of 2020, users have created more than 4 billion snaps everyday.

On the other hand, the time period spent by users on Snapchat has increased by 35%. Sounds interesting right!!! The time spent on chatting and watching videos has doubled when compared to the first quarter of 2019.

How does Snapchat make money?

It’s no surprise that Snapchat is an amazing camera application. It helps users to capture crazy pictures, communicate with dear ones visually via images or videos. These are called Snaps. These snaps will be automatically deleted after the time-out.

Apart from sharing pictures and videos, users can interact with their dearest friends at any time by making audio or video calls. Also, they can communicate using emojis or stickers.

Enough said, let’s discuss how Snapchat is making good profits year over year.

Snapchat revenue model

Let’s keep things simple. Snapchat is earning more and more money through advertising. Yes, you’ve heard it right. In-app advertising is generating primary revenue for Snapchat. The Snap advertising will let advertisers promote their product or service through stories. Apps will run on full-screen videos and better sound quality.

Snap ads allow the advertisers to integrate excellent features and extra experience with their ads. It includes watching long-form videos, installing applications and more.

Snapchat’s revenue is growing every year. Let’s consider, Snapchat earned $58.66 million in 2015. The application has reached $1103 million in 2019. Currently, Snapchat has earned $464.2 in 2020.

The primary revenue source of the Snapchat business model is “advertising”. Unlike other social platforms such as Twitter and Instagram, Snapchat keeps the user information confidential. The application does not sell its users information to third-party sources.

Snapchat has professional designing team. Their team will creating outstanding advertising products. They design user-friendly and engaging ads, this way Snapchat users don’t get interrupted. Infact, users enjoy watching these ads. This is the primary reason even popular social channel such as Facebook is copying it’s feature.

Let’s dive into the topic. Snapchat earn revenue from it’s excellent features, let’s discuss them

Sponsored geo-filters

Geofilters are particular filters that are designed for a specific location. For example, local businesses can advertise their product or service to their location rather than advertising globally. On the other hand, Snapchat is offering an outstanding feature i.e “On-Demand Geo-filter”. This special feature is used by top businesses and movies to advertise. This way they can improve brand awareness and gain trust among Snapchat users.

Sponsored lenses

If you’re a teen, then this could be an excellent feature for you. Augmented reality generated lenses are the current trend. The designing team at Snapchat updates it frequently. There are few popular companies such as Taco Bell, Gatorade and more that are using Sponsored Lenses and increasing the brand equity and improving their user engagement.

Sponsored stories

Checking your friend’s stories might be fun and exciting. Snapchat works in a smart way while placing sponsored stories. Users can watch sponsored stories in their section automatically whenever they are checking for friend’s stories. Many popular businesses are introducing this feature whenever they launch a product or service to increase conversion and traffic. Eventually, Snapchat has earned better profits with this feature. Even Facebook has copied this feature and implemented on Instagram.

Shazam integration

If you’re a music lover then you might know about the amazing application – Shazam. People don’t need to install the Shazam application. This is an in-build application available on Snapchat. Users can use the Shazam application without hassles. They can search and share the music as Snap within a few simple clicks. With Shazam integration, Snapchat has earned millions of new users. On the other hand, Shazam is generating good revenue for Snapchat.

Discover

Snapchat has rolled out an excellent update on the “Discover” feature. As the name indicates users can discover anything with this functionality. They can check the daily news feed just by scrolling. Snapchat is earning money by accepting the partnership with publishers. These publishers can promote their stories at Discover section. This way, users are spending maximum time on scrolling the new feed at Snapchat. Publishers pay a lot of money to Snapchat for advertising their content. This could be a win-win solution for Snapchat and Publishers.

Snap Store

Are you a fashion freak? Snap Store is the best place for you. While using Snapchat don’t forget to open Snap Store. Snapchat is selling high-quality and exclusive fashion products. The merchandise ranges from t-shirts to sweatshirts. Users are loving the fashion goods and placing the orders. This way Snapchat is making money by selling it’s exclusive stuff to its users.

Unbelievable Snapchat facts & stats

• As per Q1 Snapchat has more than 238 million active users around the world.
• More than half of the users are 15 to 25 years age-group.
• Around 70% of users are women on Snapchat.
• Over 210 million snaps have been created by users everyday on Snapchat.
• Snapchat is the 2nd most-used social media app worldwide.
• It is considered the 3rd popular application in the market.
• There are more than 53.5 million downloads.
• 1 million lenses are created by users on Snapchat as of Q1 2020.
• 63% of users agree that they check Snapchat everyday.
• Snapchat has rejected the acquisition of Facebook by $3 billion and Google by 4 billion.

Wrapping up

Whether you’re planning to share stories or buy trendy merchandise, Snapchat is the perfect place for you. Snapchat was founded in 2011. The application is gaining popularity around the world. There are more than 238 active users who access Snapchat on a daily basis. Among them 70% of users are women. Apart from personal usage, Snapchat is a great platform for businesses to improve their brand awareness and increase user engagement. Snapchat is earning good revenue through advertising. This way Snapchat is promoting other business products or services on its platform and generating good ROI. Additionally, Snapchat is making money through its features such as sponsored geo-filters, lens, stories, store and more. As Snapchat is increasing its popularity, Facebook and Google have planned to acquire the application. But unfortunately, Snapchat has rejected it. In the future, Snapchat will introduce eye-catching features and help individuals and businesses to earn profits.