Adults, not teens. Messaging, not Stories. Developing markets, not the US. These are how Snapchat will make a comeback, according to CEO Evan Spiegel . In a 6,000-word internal memo from late September leaked to Cheddar’s Alex Heath, Spiegel attempts to revive employee morale with philosophy, tactics, and contrition as Snap’s share price sinks to an all-time low of around $8 — half its IPO price and a third of its peak.
“The biggest mistake we made with our redesign was compromising our core product value of being the fastest way to communicate” Spiegel stresses throughout the memo regarding ‘Project Cheetah’. It’s the chat that made Snapchat special, and burying it within a combined feed with Stories and failing to build a quick-loading Android app have had disastrous consequences.
Spiegel shows great maturity here, admitting to impatient strategic moves and outlining a cohesive path forward. There’s no talk of Snapchat ruling the social app world here. He seems to understand that’s likely out of reach in the face of Instagram’s competitive onslaught. Instead, Snapchat is satisfied if it can help us express ourselves while finally reaching even meager profitability.
Snapchat may be too perceived as a toy to win enough adults, too late to win back international markets from the Facebook empire, and too copyable by good-enough alternatives to grow truly massive. But if Snap can follow the Spiegel game-plan, it could carve out a sustainable market through a small but loyal audience who want to communicate through imagery.
Here are the most interesting takeaways from the memo and why they’re important:
1. Apologizing For Rushing The Redesign
“There were, of course, some downsides to moving as quickly as a cheetah We rushed our redesign, solving one problem but creating many others . . . Unfortunately, we didn’t give ourselves enough time to continue iterating and testing the redesign with a smaller percentage of our community. As a result, we had to continue our iterations after we launched, causing a lot of frustration for our community.”
Spiegel always went on his gut rather than relying on user data like Facebook. Aging further and further away from his core audience, he misread what teens cared about. The appealing buzz phrase of “separating social from media” also meant merging messaging and Stories into a chaotic list that made both tougher to use. Spiegel seems to have learned a valuable lessen about the importance of A/B testing.
2. Chat Is King
“Our redesigned algorithmic Friend Feed made it harder to find the right people to talk to, and moving too quickly meant that we didn’t have time to optimize the Friend Feed for fast performance. We slowed down our product and eroded our core product value. . . . Regrettably, we didn’t understand at the time that the biggest problem with our redesign wasn’t the frustration from influencers – it was the frustration from members of our community who felt like it was harder to communicate . . . In our excitement to innovate and bring many new products into the world, we have lost the core of what made Snapchat the fastest way to communicate.”
When Snap first revealed the changes, we predicted that “Teen Snap addicts might complain that the redesign is confusing, jumbling all content from friends together.” That made it too annoying to dig out your friends to send them messages, and Snap’s growth rate imploded, with it losing 3 million users last quarter. Expect Snap to optimize its engineering to make messages quicker to send and receive, and it even sacrifice some of its bells and whistles to make chat faster in developing markets.
3. Snapchat Must Beat Facebook At Best Friends
“Your top friend in a given week contributes 25% of Snap send volume. By the time you get to 18 friends, each incremental friend contributes less than 1% of total Snap send volume each. Finding best friends is a different problem than finding more friends, so we need to think about new ways to help people find the friends they care most about.”
Facebook’s biggest structural disadvantage is its broad friend graph that’s bloated to include family, co-workers, bosses, and distant acquaintances. That might be fine in a feed app, but not for Stories and messaging where you only care about your closest friends. With friend lists and more, Facebook has tried and failed for a decade to find better ways to communicate with your besties. This is the wedge through which Snapchat can attack Facebook. If it develops special features for luring your best friends onto the app and staying in touch with them for better reasons than just maintaining a Snap “Streak”, it could hit Facebook where it can’t defend itself.
4. Discover Soars As Facebook Watch And IGTV Stumble
“Our Shows continue to attract more and more viewers, with over 18 Shows reaching monthly audiences of over 10M unique viewers. 12 of which are Original productions. As a platform overall, we’ve grown the amount of total time spent engaging with our Shows product, almost tripling since the beginning of the year. Our audience for Publisher Stories has increased over 20% YoY, and we believe there is a significant opportunity to continue growing the number of people who engage with Discover content . . .We are also working to identify content that is performing well outside of Snapchat so that we can bring it into Discover. “
Discover remains Snapchat’s biggest differentiator, scoring with premium video content purposefully made for mobile. What it really needs, though, are a few must-see tentpole shows to drag in a wider audience that can get hooked on the reimagined digital magazine experience.
5. But Discover Is A Mess
“Our content team is working hard to experiment with new layouts and content types in the wake of our redesign to drive increased engagement.”
Snapchat Discover is an overcrowded pile of clickbait. News outlets, social media influencers, original video Shows, and aggregated user content collections all battle for attention in a design that feels overwhelming to the point of exhaustion. Thankfully Snapchat seems to recognize that more cohesive sorting with fewer images and headlines bombarding you might make Discover a more pleasant lean-back consumption experience.
6. Aging Up To Earn Money
“Most of the incremental growth in our core markets like the US, UK, and France will have to come from older users who generate higher average revenue per user . . . Growing in older demographics will require us to mature our application . . . Many older users today see Snapchat as frivolous or a waste of time because they think Snapchat is social media rather than a faster way to communicate. Changing the design language of our product and improving our marketing and communications around Snapchat will help users understand our value . . . aging-up our community in core markets will also help the media, advertisers, and Wall Street understand Snapchat.”
Snapchat can’t just be for cool kids anymore. Their lower buying power and lifestage make them less appealing to brands. The problem is that Snapchat risks turning off younger users by courting their older siblings or adults. If, like Facebook, users start to feel like Snapchat is a place for parents, they may defect in search of the next purposefully built to confuse adults to stay hip.
7. Finally Prioritizing Developing Markets
“We already have many projects underway to unlock our core product value in new markets. Mushroom allows our community to use Snapchat on lower-end devices. Arroyo, our new gateway architecture, will speed up messaging and many other services . . . It might require us to change our products for different markets where some of our value-add features detract from our core product value”
Sources tell me Snapchat’s future depends on the engineering overhaul of its Android app, a project codenamed ‘Mushroom’. Slow video load times and bugs have made Snapchat practically unusable on low-bandwidth connections and old Android phones in the developing world. The company concentrated on the US and other first-world markets, leaving the door open for copycats of Stories built by Instagram (400 million daily users) and WhatsApp (450 million daily users) to invade the developing world and dwarf Snap’s 188 million total daily users. In hopes of a smooth rollout, Snapchat is already testing Mushroom, but it will have to do a ton of marketing outreach to convince frustrated users who ditched the app to give it another try.
8. Fresh Ideas, Separate Apps
“We’re currently building software that takes the millions of Snaps submitted to Our Story and reconstructs parts of the world in 3D. We can then build augmented reality experiences on top of those models and distribute them as Lenses . . . If our innovation compromises our core product of being the fastest way to communicate, we should consider create [sic] separate applications or other ways of delivering our innovation.”
Snapchat has big plans for augmented reality. It doesn’t just want to stick animations over the top of anywhere, or create AR art installations in a few big cities. It wants to build site-specific AR experiences across the globe. And while everything the company has built to date has lived inside of Snapchat, it’s willing to spawn standalone apps if necessary so that it doesn’t bog down its messaging service. That could give Snapchat a lot more leeway to experiment.
9. The Freedom Of Profitability
“Our 2019 stretch output goal will be an acceleration in revenue growth and full year free cash flow and profitability. With profitability comes increased autonomy and freedom to operate our business in the long term best interest of our community without the pressure of needing to raise additional capital.”
Snapchat is still bleeding money, losing $353 million last quarter. Snapchat ended up selling 2.3 percent of its equity to a Saudi Arabian prince in exchange for $250 million to lengthen its rapidly shortening runway. And last year it took $2 billion from Chinese gaming giant Tencent. Deals like that could threaten Snapchat’s ability to prioritize its goals alone, not the moral imperatives or developer platforms that would benefit its benefactors. Once profitable, Snapchat won’t have to worry so much about struggling with short-term user growth and can instead focus on retention, societal impact, and its true purpose — creativity.
Apple’s App Privacy Report launches into beta to show you what your apps are up to – TechCrunch
Apple has now launched a beta version of its “App Privacy Report,” a new feature that aims to provide iOS users with details about how often their everyday apps are requesting access to sensitive information, and where that information is being shared. The feature was first introduced at Apple’s Worldwide Developer Conference in June, amid other privacy-focused improvements, including tools to block tracking pixels in emails, a private VPN, and more. Apple explained at the time the new report would include details about an app’s access to user data and sensors, including the user’s location, photos, contacts, and more, as well as a list of domains that the app contacts.
Though announced as a part of the iOS 15 update, the App Privacy Report was not available when the new version of iOS rolled out earlier this fall. It’s still not accessible to the general public but has entered into a wider beta test with the release of the iOS 15.2 and iPadOS 15.2 betas.
The new report goes beyond the potentially fallible App Privacy labels, which detail what sort of sensitive data an app collects and how it’s used. Developers may not always fill out their labels accurately — either by mistake or with a desire to mislead end users — and Apple’s App Review team may not always catch those ommissions.
Instead, the new App Privacy Report works to collect information about how apps are behaving more directly.
When enabled by users in their device’s Privacy Settings, the App Privacy Report will create a list of their apps’ activity over the past seven days. You can then tap on any app to see further details about when the app last accessed sensitive data or one of the device’s sensors — like the microphone or location, for example. This information is available in a list where each access is logged with a timestamp.
In another section, “App Network Activity,” users will be able to see a list of domains apps have communicated with over the past seven days. This list could include domains used by the app itself to provide its functionality, but will also reveal those from third-party trackers and analytics providers the app works with for analytics and advertising purposes, for example.
The “Website Network Activity” offers a similar list, but focuses on websites that contacted domains, some of which may have been provided by an app. You can also view the most contacted domains and drill down into individual domains to see which trackers and analytics they may be using as well as which apps have been contacting them, and when.
Ahead of the beta launch, Apple made a feature called “Record App Activity” available, which allowed developers to preview what users would see when the App Privacy Report became available. This option produced a JSON file where they could confirm their app was behaving as expected. Already, this feature produced some interesting findings. For instance, Chinese super app WeChat was found to be scanning users’ phones for new photos every few hours.
While the App Privacy Report will put into users’ hands a treasure trove of data, it could present complications for developers who may have to now explain to users that some of these data requests are not truly privacy violations — they’re about providing the promised app functionality. A weather app, for example, may need to pull a users’ location on a regular basis if the user has requested push notifications about changing weather patterns, like storm updates, to help them prepare for travel.
When presenting the app to developers, Apple said the report would give them an opportunity to “build trust” with users by providing transparency about what their app is doing. The company also suggested it could give the developers themselves better insight into the SDKs they’ve chosen to install, to ensure their behavior aligns with what the developer wants and expects.
Apple has not said when the new feature may exit beta, but it’s possible it will ship when iOS 15.2 becomes publicly available.
Bolt to expand EV option in South Africa – TechCrunch
Estonian on-demand transport firm Bolt is set to roll out electric taxi options in South Africa four months after introducing e-bike food delivery services in the country.
Bolt’s plan follows the introduction of a ‘green category’ – which lets riders hail an electric or a hybrid vehicle. This comes as the company expands its services to environmentally friendly modes of transport.
“We are looking to roll out a green taxi category in South Africa in the next few months, and plan to roll out green categories in other African markets,” said Bolt’s regional director for Africa and Middle East, Paddy Partridge.
The company already offers a green option in Kenya, where it also runs e-bike food delivery. It also plans to launch e-mobility options for food delivery in its other markets across East Africa, including Uganda and Tanzania.
Founded in 2013 by Markus Villig, the tech firm, which has operations in 45 countries – including seven in Africa – runs a gamut of services comprising ride-hailing, car, scooter and bike rentals, food delivery, and recently grocery delivery, fashioning itself as a transport and deliveries company.
“In East Africa we see a lot of potential on the motorbike side, and especially for delivery. We plan to invest more in this direction as it also serves to eliminate the challenges associated with constantly fluctuating fuel prices, currently the most significant operating cost for our couriers,” said Partridge.
Opportunities for electric mobility are said to be huge, but a majority of countries lack the necessary infrastructure to support their adoption, says a UNEP report.
A lack of recharging infrastructure, low grid power connectivity, and generally expensive e-vehicles remain hindrances to the adoption of electric transportation options in many African countries.
A transition to electric power would offer countries in sub-Saharan Africa a range of gains, including affordable transport and a reduction in emissions, with fossil-fuel vehicles contributing 12% of the region’s total emissions, according to the SSA Nature Sustainability report.
Bolt is planning arrangements with banking institutions in its markets in Africa to help its drivers access credit for purchasing electric vehicles, exploring other options away from its current scheme with leasing companies.
“The purchase cost and import duties are often high, thereby deterring ownership. We are exploring a number of vehicle financing partnerships in Kenya and South Africa for electric cars and bikes, which would help make it easier for drivers to get access to, and eventually own, electric vehicles,” he said.
The company’s plan to expand its offering across the continent comes in the wake of growing competition from companies such as Uber, which is currently testing a carpooling service in Nairobi, with plans to roll it out in Ghana and Nigeria.
Bolt recently launched the food delivery service in Nigeria, and also expanded its reach in South Africa by rolling out the service in Johannesburg after introducing it in Cape Town last year.
This comes in the wake of the company’s recent $696 million (€600M) funding round that the tech firm said will go into growing the new grocery delivery service, Bolt Market, as well as in expanding its other transport and delivery services.
Sequoia Capital, Tekne Capital, and Ghisallo, G Squared, D1 Capital, and Naya Capital are some of the investors that participated in the funding round that increased its valuation to €4 billion. The new funding came after the International Finance Corporation injected $24 million (€20) into the business at the beginning of the year.
Among the services it is looking to grow is Bolt Drive, the car rental service launched early this year to offer different choices including compact, mid-size, electric, premium, SUV, and van. The service is currently available in Estonia’s capital Tallin with plans to roll it out in other Europe and Africa markets. Bolt Drive adds to the micro-mobility options – scooters and e-bikes – that the company introduced in line with its goal of availing to the masses, more budget environmentally friendly transport solutions. The e-mobility service is available in over 100 cities across Europe.
“We continue to scale up our operations for the benefit of our customers. Our core business is to provide reliable, safe and affordable transportation services to everyone and we are excited to make travel easier and quicker in many cities across the continent,” said Partridge.
Google announces Android 12L, a feature drop for large-screen devices – TechCrunch
Google today announced a preview of Android 12L, which sounds like a new version of Android, but Google calls it “a special feature drop that makes Android 12 even better on large screens.”
The idea here is to provide users on tablets, foldables and Chrome OS laptops — anything with a screen above 600 dp — with an improved user interface.
The developer preview of Android 12L is now available for developers who want to give it a try, as well as a new Android 12L emulator and support for it in Android Studio.
But 12L is also for phones, Google says, confusing no one. Since you won’t really see most of the new features there, though, the focus right now is on other devices, with beta enrollments for Pixel devices launching later in the preview.
Since Google calls it a ‘feature drop’ and ‘feature update’ in its announcement today, we’re not looking at a full fork of Android for these devices the way Apple split up iOS and iPadOS. Instead, it’s an update for large-screen devices that introduces additional multitasking tools and an optimized user interface. By default, Android 12L should also make apps look better on these devices, too.
Specifically, this means Google refined how notifications, quick settings, lock screen, overview and the home screen look on large screens. System apps on Android 12L have also been optimized, too.
What’s probably most interesting here is the new multitasking features, with a new taskbar that is a bit reminiscent of iPadOS. Android already supported split-screen mode on tablets, but Google notes that it’s now more discoverable. You simply drag and drop an icon from the taskbar onto the screen to invoke it. This also means every app on Android is now enabled to support split-screen mode (something that developer previously had to opt-in to).
Google plans to release 12L early next year, “in time for the next wave of Android 12 tablets and foldable.” We should probably expect to hear a lot about Android tablets and foldable at MWC then.
In addition to Android 12L, Google also today announced new features in OS and Play for developers to better support these devices. These include updates to its Material Design guidance for large-screen devices, but also updates to Jetpack Compose to make it easier to build for these machines and to ensure that apps can more easily adapt to various screen orientations and sizes. Android Studio is also getting a resizable emulator to help developers test their apps on a wider variety of screen sizes and a new visual linting tool to surface UI warnings and suggestions when the layout has issues.
As for Google Play, the company will now check apps against its large screen app quality guidelines and its search rankings will take the results of this into account. “For apps that are not optimized for large screens, we’ll start warning large screen users with a notice on the app’s Play Store listing page,” Google says.
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