{"id":12094,"date":"2019-05-07T16:04:52","date_gmt":"2019-05-07T16:04:52","guid":{"rendered":"https:\/\/thesocialelement.agency\/us\/?p=12094"},"modified":"2019-05-07T16:05:07","modified_gmt":"2019-05-07T16:05:07","slug":"how-are-social-networks-and-apps-monetising-their-services-in-2019","status":"publish","type":"post","link":"https:\/\/thesocialelement.agency\/us\/how-are-social-networks-and-apps-monetising-their-services-in-2019","title":{"rendered":"How are social networks and apps monetising their services in 2019?"},"content":{"rendered":"

Instagram recently launched the ability to <\/span>buy products<\/span><\/a> from a creator\u2019s post – without leaving the app. It adds another way for Instagram to generate revenue from the free-to-use app, while also giving consumers a hassle-free way to shop from their favourite brands.<\/span><\/h2>\n

But are other networks taking a similar approach to monetisation, or are they still relying on the tried and tested ad model? <\/span><\/p>\n

1. Ads still rule<\/b><\/p>\n

All of the major social networks still depend on advertising for the bulk of their revenue. Facebook\u2019s family of apps (including Insta and WhatsApp) generated <\/span>$55.8 billion in revenue<\/span><\/a> in 2019, 99% of which came from advertising. Facebook uses the data it finds on user\u2019s profiles, and the data gathered from the Facebook Pixel that it embeds on other websites, to build an advertising profile for each user and target them with personalised ads.<\/span><\/p>\n

Snapchat has five different ways of generating money through <\/span>advertising<\/span><\/a>. It uses Snap Ads to grab people\u2019s attention as they browse through their friend\u2019s posts. Sponsored Lenses give brands a way to create fun overlays for people to use on their own posts. Brands can use Branded Geofilters to give users specific calls to action. Brands can also pay Snapchat to promote their content with branded content placed in the Discover section and by partnering with them to broadcast live events (<\/span>which cost<\/span><\/a> around $400,000 – $500,000).<\/span><\/p>\n

Pinterest exclusively relies on ads for revenue – although it <\/span>hasn\u2019t yet made a profit<\/span><\/a>. Its ads take the form of promoted pins and <\/span>click-to-buy<\/span><\/a> shopping ads.<\/span><\/p>\n

Advertising accounted for <\/span>86% of Twitter\u2019s revenue<\/span><\/a> in 2018. Brands (and individuals) can buy promoted tweets, promoted accounts and promoted trends.<\/span><\/h3>\n

2. Exploring the potential of hardware<\/b><\/p>\n

Facebook entered the hardware market when it purchased Oculus VR in 2014, but <\/span>commentators argue<\/span><\/a> that for Oculus to be a significant success for Facebook it will need to attract the interest of the gaming community. It may be tricky because established gaming companies, like Playstation, already have their own versions of the headsets. As the technology comes down in price, Facebook will need to sell more to make its initial investment worthwhile. Facebook has also invested in Portal, but people may be hesitant to buy the devices as they worry about <\/span>trusting Facebook<\/span><\/a> with a camera in their homes.<\/span><\/p>\n

Snapchat has also looked into monetising hardware with Spectacles. However, it overestimated how popular the devices would be and ended up <\/span>making a loss<\/span><\/a> on them (it\u2019s not stopped Snapchat trying again though).<\/span><\/p>\n

3. Selling other services <\/b><\/p>\n

Facebook also makes money from <\/span>several services<\/span><\/a>:<\/span><\/p>\n