How does Snapchat Make Money?

What actually Snapchat Online is and how the app works? This is the first question that arises in your mind when you came to know the success of Snapchat and how does Snapchat make money.

The Snapchat is an app that allows users to exchange snaps on their stories. Users can also message to anyone in their contact list of Snapchat app including a text message, photos or videos, you can respond to any of the story uploaded by your friend.

These personal messages will be deleted automatically once they are seen. However, a public post has also a 24-hour expiration date. The app is most popular among millennial and generation Z.

The Success of Snapchat

In spite of the fact that Snapchat has many limitations in terms of posts and messaging but the daily active users are approx. 150 million on Snapchat. While the approx valuation is $18 billion.

How Does SnapChat Make Money?

Well, like other social media apps like Twitter, Facebook, and Instagram, Snapchat is also making profits through advertisements. But there are also some other ways of making a profit which Snapchat is utilizing. Some of the profit-making features are discussed below.

Snap Advertisements

What you might not know about Snapchat is that the Snap Ads is the major profit making a feature for Snapchat app. This feature shows how much popular the app is. The more application users are active the more ads will be seen and that will make a huge profit. According to different sources, the data says that Snapchat will be hitting around $1 billion in coming against this Snapchat ad’s feature only.

10-second full-screen video ads are usually experienced by users on Snapchat. These ads are most relevant to other snaps and also interactive. During the ad, the user has the option to swipe up if they want to see more content. A content could be a detailed video, blog post or any app installation option. Most of the channels on Snapchat have ads too which usually post by Snapchat’s publishing partners.


The life stories like the major event of Olympic produce money and now the user’s stories also make money.  You will find the ads when you switch to one friend’s story to another friend. This also makes a profit of Snapchat.

Filters and lenses

One of the most important fact of Snapchat is that it has sponsored filters are sold by Snapchat for some specific and highlighted events. The events choose on the basis of users interest. The face-distorting feature that turns users into a zombie or dog. A Teco bell sponsored lens that turns users into tacos. These are some sponsored lens filters by big companies that make a profit when users use these filters.

These sponsored filters are the same as filters and they could be used on specific locations like KFC. While having a meal at KFC, a user might post a story with Colonel Sanders lens filter which will turn the user into a white-man colonel. Some kind of animation is also there like a bite of fried chicken piece enjoying by a user. To make it more attractive, it also has a sound clip once it is active.


It is kind of a ready-made experience or description for your snap at some or limited locations. Those locations are popular. The location could be a big event happening in present. If you wish to add a story and share the experience with your followers, the geo filter will be available to add with your snap while posting it. you will be then no need to explain where you are, what is the location about? All these info will be added with Geofilter you have applied on your snap.

The companies buy these filters for their big events or some locations buys these filters for their promotion and pays to Snapchat.

Partnership with sports organizations

Many of the sports organization such as the NFL, NHL and the MLB has been partnered by Snapchat in recent years. To reach more people on the social media platform, these sports organization uploads live stories of their big events.

Snapchat is making money with these partnerships, more young and passionate audience follow the sports leagues. This is the reason why sports organization investing in partnership with snap chat, both the snap chat and the sports organizations most great out of it.

Muhammad Usman Siddiqui is a young entrepreneur from Pakistan. His studies (Petroleum Engineering) has no relation to innovation and future technologies but the passion keeps him in this field.


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