Snaps may start and finish in a matter of seconds, but the company’s growth is likely to remain steady for quite some time.
Snap now boasts 265m daily users (+22% year-over-year) — and on average those users open the app 30 times per day to collectively snap 5B+ photos.
Now, Snap’s looking to monetize its users through an acquisition of Berlin-based retail tech startup Fit Analytics.
Snap is making an ecommerce push
Fit Analytics builds tech for ~18k retailers — including The North Face, Foot Locker, and Patagonia — that helps shoppers choose the right sizes for the clothing they buy online.
It’s a strategy play: Snap is looking to diversify its $911m ad-driven revenue by launching an ecommerce retail barrage.
Snap is already partnering with NYX Professional Makeup, Ralph Lauren, and Perfect Corp for AR clothing try-on campaigns.
The purchase couldn’t come at a better time
Snap’s got a Gen Z army ready to fire at will. Roughly 90% of 13- to 24-year-olds in the US are on Snapchat, and they’re bringing the heat with $323B in direct buying power.
Per research firm Piper Sandler, the “Selfie Budget” (which includes clothing, fashion accessories, personal care, and shoes) made up 40% of US teens’ spending in fall 2020.
Bottom line: Snapchat’s got the teens, and Fit Analytics has the retail smarts. Ergo, this deal may need a “made in heaven” filter.
Get the 5-minute roundup you’ll actually read in your inbox
Business and tech news in 5 minutes or less