Are media companies building another house of cards on Snapchat?

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If there’s an “It Girl” in the online-media space right now — a single company that sums up the current landscape, for better or worse — it would have to be Snapchat. The four-year-old company is the platform everyone wants to be seen with, whether it’s Vice News using it to post a 10-minute documentary on Bitcoin, or Madonna featuring a video from her new album.

But what exactly do media companies get out of this? Is it a potential share of future revenues (assuming they appear)? Is it exposure to new users, and especially much-sought-after millennials? And are those returns going to be worth it, or are they building another house of cards on someone else’s land?

More eyeballs and clicks

The big story right now is Snapchat’s new Discover feature, which launched last month with partners like Vice, CNN and Yahoo News, and more expected in the near future (BuzzFeed, which you might think would be a natural fit with the somewhat ephemeral nature of Snapchat content, reportedly backed out of a deal, citing creative differences). Media companies both large and small have been jockeying to be part of the new offering.

And what is the payoff? Everyone who has talked about their decision to play ball with Snapchat mentions the platform’s reach, how it has more than 200 million active users (and reportedly growing quickly) and how they are trying to expand their audience. And the engagement levels are apparently off the charts, according to some media execs: One told Digiday that “I can’t tell you what the numbers are, but they’re f***ing incredible.”

SnapChat Discover

The publishing executive quoted by Digiday didn’t specify what exactly was so incredible about Snapchat’s numbers, but presumably it was some combination of number of users and the time they spent with the media company’s content. In an era when the attention span of some web readers is measured in tenths of a second, anything more is worth celebrating.

So what if users are showing up in droves and clicking on those video links or text stories or photo galleries? Snapchat says that it is planning to offer advertising within the Discover content, and that it’s going to be good enough that it will generate revenue for everyone, including the content creators. But do we have any way of knowing whether that’s true? Not really. And are any readers being driven back to the actual websites of the content companies themselves, to be monetized? No one knows.

A full-fledged media entity

For a dystopian — but arguably not inaccurate — perspective on where this all could be leading us, check out John Herrman’s recent piece at The Awl on how the internet’s future appears to be much like TV: in other words, a cheap and cheerful attention factory designed to monetize eyeballs as efficiently as possible, regardless of the inherent value of the content. And chat apps are where the attention is.

[blockquote person=”” attribution=””]”The only apps that people use in the way publications want their readers to behave — with growing loyalty that can be turned into money — are basically communications services. The near-future internet puts the publishing and communications industries in competition with each other for the same confused advertising dollars, and it’s not even close.”[/blockquote]

If you had suggested even six months ago that Snapchat was going to become any kind of savior for media, you would have been laughed out of the room or committed somewhere for psychiatric observation. The service was known — if it was known at all — as a dodgy startup founded by a bunch of dude-bros, whose platform specialized in messages that self-destruct. It was widely seen as a “sexting” app and nothing more.

WaPo SnapChat

Fast forward to now, and Snapchat has become a full-fledged media entity: in addition to the ephemeral messaging that it launched with, it now has Discover, as well as Snapchat Stories, which are collections of photos and videos that users can share. The company has even launched its own original series, called “Literally Can’t Even.” And brands like AT&T are trying to find popular video stars from YouTube to create content for the service.

Owning the game

Much like Twitter, Snapchat’s growth and expansion is a great example of a saying based on the disruption theories of Clay Christensen — that the next big thing always starts out looking like a toy. In the war for attention, Snapchat and other services are clearly winning, and traditional media companies seem to be losing. So it makes sense to play ball with them, in order to learn from them, and hopefully convert some of those ephemeral users into loyal readers or even potential customers at some future point.

This is the rationale behind BuzzFeed’s project, known as BuzzFeed Distributed, in which a team produces content of various kinds — photos, videos, text, cartoons — just for the specific platforms they appear on, whether it’s Snapchat and Instagram or Facebook. And there’s no question experimenting is good, and the principle of “promiscuous media” (as Fusion’s Felix Salmon has called it) has a lot going for it.

At the same time, however, the risk with Snapchat is the same as it is for media companies who play ball with Twitter or Facebook: Namely, that the main beneficiary of this deal is the platform itself, since it is the one that reaps most of the revenue and the attention, and theoretically the trust relationship that goes along with them. And they control not only the ball but the field, and the umpires, and the stadium — and they can change the rules whenever they want to. It’s awfully hard to win when you’re playing a game like that.

4 Comments

tcartercto

A large percentage of traffic to media sites come as a referral from Facebook. Media companies are starting to realize fewer people are seeking them out but still want their content, the Media company needs to put its content where the people are. While snapchat is not a savior and could be gone in a few years, Media companies need to adapt with the ever changing landscape. As far as revenue, that will evolve, it wasn’t that long ago that Facebook started to allow you to run video in-line with your own ads. Media needs to be willing to take some risks knowing some will fail and others will succeed but you have to be ready to capitalize quickly as the opportunity may be short lived.

Robert Hunter

Snapchat launched in 2011. It might not be around in 2018. Media is a dynamic environment. But it’s about the customer. Smart companies can go all in on platforms where their customers live now as long as they understand they’ll probably be somewhere else a year from now.

dirk robers

Twitter is unfortunately becoming the prime example of how a great product for the user is not necessarily equally good at generating revenue. At the least not without changing the platform beyond recognition. The kids that use snapchat love the ephemeral nature, be naughty. It doesn’t mean that they won’t follow the platform whilst it’s undergoing it’s metamorphosis, but cat lovers aren’t necessarily dog lovers. Snapchat has greater potential by staying true to the platform, otherwise it’s just another messaging app..

Swag Valance

The more established media companies keep handing over their identities to Facebook, SnapChat, or whomever comes calling next. This will not end well.

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