The news: Snap outlined plans to expand revenue to $6 billion in 2023 and to boost Snapchat's user base by 30% to 450 million in a memo by co-founder and CEO Evan Spiegel distributed to staff on September 6.
Some highlights: It won’t be easy, but credit Spiegel for outlining a vision for how the company could emerge from its current doldrums.
- Snapchat+, the platform’s paid subscription that offers users access to extra features, is on target to reach 4 million subscribers by the end of this year, and is expected to contribute $350 million in revenues next year, according to Spiegel—which would necessitate the company roughly doubling the service’s subscriber count.
- In 2023, the company plans to increase users' time spent on content by 10%.
Planning is great, but there are some issues Snap will have to contend with here.
Gen Z isn’t everything: The memo outlines plans to onboard more users in their 30s and 40s to meet the platform’s growth objectives. But what impact could the strategy have on the Gen Z users that have made the app so popular?
- As Facebook became more popular with older users, it began to lose the sheen that made it appeal to younger demographics. Spiegel’s move to appeal to older users could be a turnoff for Gen Z.
- If Gen Zers become disenchanted with Snapchat, there’s this up-and-coming platform called TIkTok we’ve written about once or twice they could flock to.