Snapchat's share price plummeted, will metauniverse become its "life-saving straw"?

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On July 21, 2022, snapchat, a social media company, disclosed its financial results for the second quarter of 2022. Its performance was lower than market expectations. The company's share price fell 40% after hours, hitting a new low since March 2020.

However, not only snapchat, but also meta, Google and other platforms are experiencing difficulties to varying degrees in the context of current economic uncertainty. Therefore, finding new sources of revenue or diversifying the company seems to be a more reliable solution.

As a social product aimed at the young user market, soul in China defined its product as "the social meta universe of young people" when the concept of meta universe became more and more popular.

Although the concept of metauniverse has not been clearly defined, the metauniverse social track has already become a new battlefield for manufacturers。

According to the sensor tower (2022) report, since the popularity of the concept of metauniverse, an "metauniverse" app has been added every day on average, and snapchat, an overseas social media software, has finally developed itself into a national product after several transformations.

Previously, snapchat announced at the global ecological partners conference that it has more than 600million monthly live users worldwide, and its layout in metauniverse has been affirmed by many users. With the development of AR technology and ecology, snapchat's playability is also getting higher and higher.

So, how does snapchat lay out the social meta universe? Will it become a new growth point of snapchat in the future?


Why do social platforms aim at the meta universe?


Since roblox first wrote the concept of metauniverse into its prospectus, the word metauniverse has come into the spotlight and received extensive attention from capital and other enterprises.

Roblox is a unique platform, which does not produce games, but provides a set of easy-to-use tools, which can facilitate creators to create the desired virtual world, and can design economic models and payment models for these virtual worlds. Creators and platforms share the revenue brought by this virtual world.

Based on this, tens of millions of different virtual worlds were born on roblox, and anyone can participate in them.

So many virtual worlds with unique styles are quickly loved by young people. Coupled with the impact of the epidemic, young people have fewer and fewer opportunities to get together offline with their partners. With roblox, you can play with friends in different styles of virtual worlds online. With this, roblox has achieved an amazing 50million days of life.

After years of precipitation and practice, roblox is very clear about what users need most in the metauniverse. Roblox makes every effort to create an atmosphere of diversity, tolerance and respect in the community. The community welcomes everyone, no matter what their identity or beliefs.

Roblox's vision is that on roblox, people can become whatever they want to be。

People are the most critical role in the meta universe, and the interaction between people, that is, social interaction, is an important factor that can immerse people in the meta universe.

Just like roblox's eight elements of the metauniverse: identity, social interaction, immersion, low latency, diversity, anywhere, economic system, civilization, social interaction is an important part of it.

According to roblox's 2021 annual report, in 2021, roblox's users will send about 2.5 billion chat messages to their friends every day. At the same time, a total of 17million friends have been generated in the community, and the strong user stickiness brought by social networking is also one of the keys to roblox's sustainability.

Roblox's amazing effect also inspired other social platforms and attracted them to devote themselves to the layout of the metauniverse. For example, Facebook, the largest social platform, announced its full entry into the metauniverse with a high profile, and even changed the company name to "meta" related to the metauniverse.

For another example, soul, a domestic social platform that builds relationships based on interest maps, has also followed the pace of metauniverse. Facing generation Z users, they have also seen the attraction of metauniverse to generation Z, quickly adjusted their positioning, and committed to building a "social metauniverse for young people".

Snapchat, one of the most popular social platforms of generation Z in foreign countries, has begun to use the key technology of metauniverse - AR technology as early as 2019, and has built a very complete ar ecosystem, including content production, distribution, cash realization, shopping, social dialogue and other functions. Now snapchat is also launching related products for the meta universe.

As social platforms that are well aware of the economic effects of the social interaction, they all actively enter the meta universe. There must be the same reason, that is, the meta universe is likely to become their new growth point。

Social platform is one of the most important components of the Internet. Based on this trend, it can be seen that metauniverse itself is likely to become an important platform for the next generation of Internet.


Who is snapchat?


Snapchat is a "burn after reading" photo sharing application. Since its development in 2011, snapchat has not only been a simple social software, but a social ar application that integrates a large number of AR and related technical functions. So what is the extraordinary development history of snapchat?

Evan Spiegel, one of the founders of snapchat, was born into a wealthy family in Los Angeles. From kindergarten to high school, Evan spent his time in crossroads, a private elite school in Los Angeles.

The school not only has many children of Hollywood stars, but also has many future masters in the field of science and technology. Evan has also accumulated a lot of valuable experience in his study career in crossroads.

Evan once wrote articles for crossfire, the school newspaper, and worked as an unpaid intern in Red Bull beverage company. This internship made Evan learn marketing and participate in computer and graphics related design projects.

Evan said that he enjoyed the process very much. Perhaps it was from this time that the seeds of Evan's entrepreneurial dream had been quietly planted.

So Evan got to know Bobby Murphy after successfully entering Stanford. They once founded an education website together, but the effect was not satisfactory.

The so-called "there must be a way to the front of the mountain". In the summer of 2011, Reggie, who lives in the same dormitory with Evan, had a whim: if only I could send photos that would disappear.

Soon he told Evan about this idea, and then the two hit it off immediately, and reached a cooperation with Murphy, who specializes in technology, so snapchat, a "burn after reading" image sharing application, was born.

This new social platform quickly became popular among teenagers, and snapchat's active users increased to 10million in just one year。

In October, 2013, snapchat launched the "stories" story sharing function. Users can add the snapshot function to the story sharing, and put a series of photos together to describe the process of things. After this function was launched, snapchat application began to enter the "fast lane" of development.

The increasingly mature platform has also attracted more users. According to statistics, as of August 2014, 40% of 18-year-old young people in the United States are using snapchat every day.

At this time, snapchat's total market value has exceeded $10billion, and Evan's personal net worth has reached $1.5 billion.

Snapchat soon attracted the attention of the giant companies. Since the platform was launched a year ago, Tencent, Facebook and Google have all proposed high price acquisition plans for snapchat, but they were all rejected by Evan.

With the continuous iteration of snapchat and the introduction of new product functions, the number of users of the platform also increases.

In 2015, snapchat began a new attempt: lenses, which gradually enriched the AR effect on the camera, and this interactive ar effect made lenses popular quickly.

At the same time, snapchat is also constantly exploring various modes of commercialization, but the competition in the field of social applications is becoming increasingly fierce.

Snapchat was officially listed on the New York Stock Exchange in March 2017, with a valuation of US $33.6 billion. Although this is the largest IPO of American enterprises since Facebook was listed, snapchat has not escaped the plight of the decline in the number of users and the company's losses.

However, snapchat is still trying to find its place in the rapidly changing social media track, so ar has become the main direction of snapchat and gradually become a favorable weapon for its business growth。


How does snapchat layout the metauniverse?


Although snapchat founder Evan refused to talk about the metauniverse, believing that the metauniverse is ambiguous and hypothetical, facts have proved that snapchat has entered the important entrance of the metauniverse by betting on AR applications, and has become a veteran player.

Snapchat was listed in 2017, but during the year of listing, the company's performance was once poor due to the huge pressure from Facebook, instagram, tiktok and other competitors and internal product defects.

Facing such challenges, Evan made an important decision of technological innovation - Taking ar application as the main direction of attack.

thereafter,Snap has transformed from a "social application company" into a "camera company" that "allows people to express themselves, live in the present, explore the world and enjoy together through cameras", and has released a series of products to realize the all-round layout of "ar metauniverse" that conforms to the brand development。

Ar camera effects

When it comes to snapchat's products, cameras are its core functional applications.

Since 2018, the team has independently developed the bottom layer of mobile AR technology, as well as a large number of front-end special effects and stickers, and these camera special effects are collectively referred to as lens.

Snapchat enhances the camera experience through AR and is applied to the app in the form of filters. Over the years, it has formed more than 250million arlens daily active users, with interaction times as high as 6billion times a day.

Ar life perception

In addition to camera effects, snap has also developed many application scenarios for AR, which are suitable for more perceptual experiences that penetrate into lifeβ€”β€”

  • Shopping experience

Compared with traditional online shopping, AR experience improves the "immersion" and "pleasure" of users' online consumption, resulting in a nearly doubled shopping conversion rate.

For example, Prada and Gucci can try on online in snapchat, switch styles at will, and view the matching effect. In addition, shopping platforms such as farfetch have also built ar online stores in snapchat, where users can shop online and enjoy offline life in a virtual way.

  • musical show

At the beginning of this year, fans of international superstar Jennifer Lopez performed with their idols at the world's first virtual concert of super sensory experience held by snapchat with their bitmoji virtual images.

From online virtual concerts to music festivals, snap has realized the application of AR technology to performance sites with more complex content, longer duration and more gorgeous vision.

  • Architectural landmarks

Snapchat has launched a series of "landmark" filters to reproduce famous scenic spots in various countries. You can "visit" classic landmarks such as the U.S. Capitol, Buckingham Palace, and the Eiffel tower without leaving home.

In addition, snapchat also endows architectural landmarks with AR creative interactive effects, which enhances the user's sense of interactive experience.

  • Modern art exhibition

When users open snap camera, they can watch the new digital devices of Sandra de la Loza and Kang Seung Lee, and also participate in various ar art activities carried out by snap in cooperation with famous modern artists such as Jeffrey Koons and kaws.

In the future, even at home, outdoors, in any corner of the world, you can enjoy the visual feast, which itself is a kind of modern art.

Ar development environment

At this year's press conference, snap released lens studio, a development environment specifically for ar.

In short, lens studio can be understood as the AR version of xcode/android studio. Ar developers can use this development environment to produce ar special effects, and can use it for snapchat or other third-party applications. This new product undoubtedly lowers the development threshold for developers and injects more vitality into the AR field.

At the same time, snap also launched a more comprehensive data analysis tool. In the new version of lens studio, developers will be able to use the event insights function to view the interaction statistics of users using AR special effects, so as to better repair special effects vulnerabilities and improve the user experience.

Ar back-end services

In addition to the development environment, snap also provides a set of cloud tools lens cloud for professional ar developers. It will provide a complete set of free back-end services including remote storage services, location-based services and multi-user services.

Specifically, complex ar special effects may include a large number of materials, but developers can save the materials in the cloud and automatically retrieve them when users use them, which can significantly reduce the pressure of special effects in the local memory of mobile phones; At the same time, the storage service also includes the ability of persistent storage, which means that users can save the same ar special effects used many times as they save the progress of the game.

In addition, location-based services can also allow developers to bind ar effects to real-world landmarks, enhancing users' perception of life; Multi user service allows multiple users to interact with the same ar effect at the same time in the same or different places.

Facts have proved that snapchat has worked hard in recent years, from product development to use, to brand influence, forming a complete set of closed-loop ar development system, and also establishing a booming online social ecosystem.

Ar application has become a powerful advantage for snap to compete with wave after wave of social platforms, and has also become a sharp weapon for business growth.With its own innovation and expertise, snapchat not only became the "first crab eater" in the AR field, but also became one of the leading platforms that first delivered the promise of metauniverse。


Can metauniverse save snapchat's share price?


After Thursday trading last week, snap's latest quarterly report was released, causing its share price to plunge by 40%, approaching the edge of "halving". Of course, compared with the share price of last quarter, snap has indeed halved. Therefore, from the feedback of investors, they do not seem to recognize the current valuation of snap.

From the financial report data, snap's revenue in the second quarter was $1.111 billion, an increase of 13% compared with $982.1 million in the same period last year; The net loss was $422.1 million, an increase of 178% compared with the net loss of $151.7 million in the same period last year, which means that the growth and loss are almost offset, and the overall net profit is bound to decline.

Of course, because of the blessing of AR, the users of snapchat, its social application, still ushered in a large growth, with daily active users reaching 347million, a year-on-year increase of 54million, an increase of 18%. Therefore, although the financial report performance is not so bright, the number of users is not bad, which is in sharp contrast to the financial report of its competitor meta.

It can be said that snapchat's heavy investment in the AR sector has led to the rise of its cost, which foreshadows the poor performance of the quarterly financial report. But in essence, snapchat has faced various growth difficulties like meta in the current Internet development, and urgently needs new products to meet user needs or keep up with user demands.

Therefore, the fali ar plate has become the same logic as the meta fali meta universe, but as previously described,Snapchat's founder has always opposed the use of the word "metauniverse" to express his layout in AR, which is the same as Apple's CEO cook. Although he does not mention metauniverse, he has practiced the layout of metauniverse related products。

Of course, we can talk about the layout of snapchat without opening up the universe itself. As we introduced, they have tasted some sweetness in the AR field, and even triggered the blessing of young users. This is the fresh blood needed by snapchat, which has been born for 11 years. Otherwise, snapchat, which originally focused on young users, will also fall into the trend of "aging".

If we go back to the metauniverse, snapchat still has a lot of imagination space in the future, especially today when Web3 is still hot, whether snapchat can find some new interests from the current huge user volume seems to be their key place to work, and the imagination space of the metauniverse confirms this fact. After all, the future has not taken shape, and no one knows the end.

But it is certain that snapchat, while unwilling to mention the word metauniverse, has relied on it to move towards the "second growth curve", which may bring enlightenment to many social products.

[statement]: This article is the original work of the operation team of metacosmic heart. It is strictly forbidden to reprint it without permission. If you need to reprint it, please contact us. The copyright and final interpretation of this article belong to metacosmic heart.

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