This has got to be a joke, $750,000 for a day of advertising to a bunch of people who only care about sending naked pictures of themselves to one another.. And going public, now that's funny for an app thats worth no more than a few million dollars..... the next bubble is here....thank ben bernanke and his 3 QE's for setting this all up.... Snapchat ads? It'll cost you Allen Wastler | @AWastler 1 Hour AgoCNBC.com 36 SHARES 3 COMMENTSAdweek reported Wednesday. The magazine, citing multiple industry sources, said the messaging app start-up is "apparently convinced of the value of a platform that reaches a teenage audience" and has "started asking brands for $750,000-a-day commitments." Snapchat, which specializes in messages that self-destruct, only started running ads in October of last year.McDonald's, Samsung, Macy's and Electronic Arts have been early Snapchat advertisers, Adweek reported. Adweek reported that some advertisers thought the ad rate a bit pricey. Snapchat declined to comment to Adweek. (Full story here) The firm has raised $485.6 million in venture funding,according to reports, and is expected by many observers to eventually go public. Indeed, it was listed as one of the most publicized tech start-ups in 2014.
I said this before in a previous post a while back, but Snapchat turning down the $3 Billion offer from Facebook was about the most arrogant and stupidest decision I've seen in a long, long, time. Maybe the dumbest in the history of business ever, actually. It takes a LOT of days at $750k per day to equal $3 Billion.
$750k is such a nice chunk of change that off the top of your head you don't realize how small it is compared to $3 Billion. But when you do the math you see it would take an astounding 4,000 days of $750k per day to equal $3 Billion. Which is just under 11 years. So I agree, they were idiots turning down the $3 Billion offer from Facebook.
Its only worth a few million, the market has no clue how to value these worthless apps that wouldn't even exist if it were not the trillions and trillions of dollars that bubble ben bernanke handed out to keep the economy from collapsing due to the last bubble the US just was in only a few short years ago after the dot Com collapse.
Even with a target audience of what 10Mil?, that's still a lot of money, the world has gone mad. i wrote an Android App in a day, which basically does the same, but smaller audience ofcourse and no huge servers or anything for me to worry about. Bet they only get adverts for sex related products, it's it's only use really. NUTS!!
And that's just gross revenue, not net money (or stock) in the pocket like the $3B from Facebook would have been.
makes no sense. snapchat users (sexting or whatever) don't want to be tracked, found, targeted. the whole point of their success thus far is PRIVACY and ANONYMITY. say goodbye to the cool kids user base