I even applaud this copycat tactic because it is a cost-effective way of leeching on your rival's success. User acquisition is a priority for any advertising-dependent entity.Ĭopying other successful products' features is legitimate business practice. Everything is fair game during this age of ultra-competitiveness. Facebook did this copycat strategy and Instagram noticeably slowed down Snapchat's growth. Making Skype more like Snapchat might also help it eventually generate $1 billion in annual advertising revenue.Ĭopying Snapchat Features Is Cost Effectiveįacebook's ( FB) Instagram and Messenger apps prodigiously copied Snapchat's features. Industry observers said Snapchat's massive popularity among young people is why Snap could generate $1 billion in ad revenue from U.S. A more expansive advertising program can help Microsoft better monetize Skype. Microsoft paid $8.5 billion for Skype in 2011. Consequently, more users on Skype means Microsoft can attract more advertisers to its Skype Advertising platform. Enabling Snapchat-like features in Skype could recruit long-term users. Skype implementing the Snapchat-like Highlights feature might also attract the 18 to 24 year demographic.Īdvertisers covet the 18-24 and 25-34 age groups. Teens and young adults (18-24) are the majority of Snapchat's 166 million active daily users. Snapchat's disappearing messages/photos/videos definitely contributed to the sexting phenomenon. Privacy-centric people who are habitual senders of sensitive photos and videos could also add Skype to their favorite messaging apps. This feature is why Snapchat became such a massive hit. Skype's new Highlights feature will let people share temporary copies of their photos and video files.
Adding the ability to share disappearing photos and videos on Skype can attract teens and young adults. Microsoft's decision to revamp its Skype desktop/mobile app to feel more like Snap's ( SNAP) Snapchat is again to help increase audience for its advertising platform. But yes, Microsoft has a 9-figure advertising business. Microsoft is a midget compared to Alphabet's ( GOOG) ( GOOGL) Google when it comes to advertising. Bing, OneDrive, Skype, Edge, Internet Explorer, Outlook, Cortana, and all Microsoft mobile apps on Android and iOS contain ads. Digital advertising is a multi-billion dollar revenue generator for Microsoft.
I explained last Friday that Microsoft's ( NASDAQ: MSFT) Bing Rewards incentive program is to improve its advertising business.
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