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Facebook Acquisition
Offer of Snapchat
Why does Facebook want Snapchat
and what can we learn from it?

Nov. 18, 2013
Versio...
Content
Introduction
Snapchat
Facebook
Background and numbers
Lessons
Impact on internet business
2
Introduction
Short intro: Node1 provides business, technology
consulting and execution in the connected world. 
In this pr...
Snapchat
Snapchat is a photo sharing application. It can
send images to other people and let the
images self destruct with...
Snapchat’s Daily Photo Share Are Soaring
400"

350"

!Daily!Photo!Shares!In!Millions!!

300"

250"

200"

150"

100"

50"
...
Facebook
One of the largest players in the new media
domain
1B+ users
Originated in 2006, before the mobile revolution
Acq...
Poke versus Snapchat
Facebook Poke app has not been
successful in winning over the
Snapchat user base


With the continuin...
Top$Photo$Sharing$Sites,$Augus

Twi<er%Ne?lix%
1%%
2%%

Share&Of&Average&Daily&Photo&Uploads&Among&Top&4&Sites&(758&Mil
Fl...
Top$Photo$Sharing$Sites,$August$2013$
Top Photo Sharing Sites,

August 2013
verage&Daily&Photo&Uploads&Among&Top&4&Sites&(...
Facebook versus Snapchat
You know that Facebook and Snapchat are almost
equal when compared along the dimension of
image s...
The connected consumer

of	
   the future
I	
  think	
  cable	
  is	
  a	
  complete	
  
waste	
  of	
  money.	
  I’m	
  n...
Lessons
Young target groups are moving away from
classic use of Facebook. Mobile, image
sharing and new concepts of commun...
Internet has parted with

the classic website history
ed life”
“Connect
ill
evenue w
market r
n
2.5+ trillio
balloon to
ye...
Impact on internet business (1/2)
Younger target groups indicate what the landscape will be in
2–4 years.


Consumers will...
Impact on internet business (2/2)
CIO’s and CTO’s of retail, media, banking and transport domains
need to realign their in...
Sarphatistraat 370
1018 GW Amsterdam
the Netherlands
Facebook acquisition offer for Snapchat. What does this implicate about internet business.
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Facebook acquisition offer for Snapchat. What does this implicate about internet business.

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Facebook is attempting to acquisition Snapchat. What is the background on this, and what can we learn about the future of the internet landscape. It shows the way things may develop regarding customer behaviour, the way they connect and what they will expect from consumer brands and retailers.

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Transcript of "Facebook acquisition offer for Snapchat. What does this implicate about internet business."

  1. 1. Facebook Acquisition Offer of Snapchat Why does Facebook want Snapchat and what can we learn from it? Nov. 18, 2013 Version 1.02 © Node1
  2. 2. Content Introduction Snapchat Facebook Background and numbers Lessons Impact on internet business 2
  3. 3. Introduction Short intro: Node1 provides business, technology consulting and execution in the connected world. In this presentation we give a concise background on the Facebook and Snapchat concepts. Why these may merge*, and what we can learn from this dynamic for business and internet in general. * Facebook has valued Snapchat very highly ($3B+) as a Merger & Acquisition target (Q3 2013) 3
  4. 4. Snapchat Snapchat is a photo sharing application. It can send images to other people and let the images self destruct within 1–10 seconds Very popular among younger target groups Controversial due to sexting* usage of the app Mobile only 300 Million images are shared per day (Q3 2013) Recently added stories where you can choose to keep images in a storyline for up to 24 hours * Sexting is the act of sending sexually explicit messages and / or photographs, primarily between mobile phones.
  5. 5. Snapchat’s Daily Photo Share Are Soaring 400" 350" !Daily!Photo!Shares!In!Millions!! 300" 250" 200" 150" 100" 50" 0" Oct+12" Nov+12" Dec+12" Jan+13" Feb+13" Mar+13" Apr+13" May+13" Jun+13" Jul+13" Aug+13" Sep+13" 5
  6. 6. Facebook One of the largest players in the new media domain 1B+ users Originated in 2006, before the mobile revolution Acquired the mobile only Instagram in 2012 User base is moving to mobile (30+%) Copied Snapchat concept with an app called Poke
  7. 7. Poke versus Snapchat Facebook Poke app has not been successful in winning over the Snapchat user base With the continuing growth of Snapchat and the strategic value of teen / tweens attention in the advertising space Facebook has moved forward to acquire Snapchat 7
  8. 8. Top$Photo$Sharing$Sites,$Augus Twi<er%Ne?lix% 1%% 2%% Share&Of&Average&Daily&Photo&Uploads&Among&Top&4&Sites&(758&Mil Flickr( "Old%Media"% Yahoo% 3%% Instagram( 7%( 1%( Facebook% 11%% 21st'Century'Fox' 16%' News'Corp' 2%' Amazon% 13%% New Media Apple% 41%% CBS' 7%' Viacom' 8%' Disney' 24%' Old Media Comcast' 24%' Time'Warner' Cable' Snapchat( 7%' 46%( Time'Warner' 12%' Google% 27%% $405'Billion'Market'Value' Source:&BI&Intelligence& 8
  9. 9. Top$Photo$Sharing$Sites,$August$2013$ Top Photo Sharing Sites, August 2013 verage&Daily&Photo&Uploads&Among&Top&4&Sites&(758&Million&Daily&Uploads&Total)& Instagram( 7%( Flickr( 1%( Within the generic new media space Snapchat is (still) very small Facebook( 46%( Snapchat 46% Source: BI Intelligence Within the fast growing mobile and image sharing space Snapchat is a very important force 9
  10. 10. Facebook versus Snapchat You know that Facebook and Snapchat are almost equal when compared along the dimension of image sharing? Yep, and Snapchat is growing extremely fast in usage! Facebook is still in it’s desktop phase and has shown this by acquiring Instagram as a fix 10
  11. 11. The connected consumer
 of   the future I  think  cable  is  a  complete   waste  of  money.  I’m  not  ever   watching  TV  shows.  I’m  just   watching  on  demand.  I  don’t   have  >me,  and  I  hate   commercials.   Teen panelist at Ignition 2013
  12. 12. Lessons Young target groups are moving away from classic use of Facebook. Mobile, image sharing and new concepts of communication are created. The consumer is becoming more connected across multiple devices and media dimensions. The consumer will become the connected consumer. 12
  13. 13. Internet has parted with
 the classic website history ed life” “Connect ill evenue w market r n 2.5+ trillio balloon to years within 6 r) (Forreste Source: Gartner, IDC, Forrester 13
  14. 14. Impact on internet business (1/2) Younger target groups indicate what the landscape will be in 2–4 years. Consumers will expect information to be more contextually oriented: time of day, location, whereabouts including images, video, sound. Shorter attention spans. Media consumption has already diversified from website to social context. Mobile, time based information and localized content are closing in fast. 14
  15. 15. Impact on internet business (2/2) CIO’s and CTO’s of retail, media, banking and transport domains need to realign their information architectures as an early response to the coming changes of the connected consumer landscape. The multiple dimensions of consumer behaviour will cascade into many and unexpected usages of online (web-)service design. Service providers in the internet arena such as payment service providers, logistics and web identity management will need to well defined services making it easy for customer facing companies to innovate their interaction models. Also called orchestration of web services in unexpected manners. 15
  16. 16. Sarphatistraat 370 1018 GW Amsterdam the Netherlands

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