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PicsArt hits 130 million MAUs as Chinese flock to its photo editing app – TechCrunch

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If you’re like me, who isn’t big on social media, you’d think that the image filters that come inside most apps will do the job. But for many others, especially the younger crowd, making their photos stand out is a huge deal.

The demand is big enough that PicsArt, a rival to filtering companies VSCO and Snapseed, recently hit 130 million monthly active users worldwide, roughly a year after it amassed 100 million MAUs. Like VSCO, PicsArt now offers video overlays though images are still its focus.

Nearly 80 percent of PicsArt’s users are under the age of 35 and those under 18 are driving most of its growth. The “Gen Z” (the generation after millennials) users aren’t obsessed with the next big, big thing. Rather, they pride themselves on having niche interests, be it K-pop, celebrities, anime, sci-fi or space science, topics that come in the form of filters, effects, stickers and GIFs in PicsArt’s content library.

“PicsArt is helping to drive a trend I call visual storytelling. There’s a generation of young people who communicate through memes, short-form videos, images and stickers, and they rarely use words,” Tammy Nam, who joined PicsArt as its chief operating officer in July, told TechCrunch in an interview.

PicsArt has so far raised $45 million, according to data collected by Crunchbase. It picked up $20 million from a Series B round in 2016 to grow its Asia focus and told TechCrunch that it’s “actively considering fundraising to fuel [its] rapid growth even more.”

PicsArt wants to help users stand out on social media, for instance, by virtually applying this rainbow makeup look on them. / Image: PicsArt via Weibo

The app doubles as a social platform, although the use case is much smaller compared to the size of Instagram, Facebook and other mainstream social media products. About 40 percent of PicsArt’s users post on the app, putting it in a unique position where it competes with the social media juggernauts on one hand, and serving as a platform-agnostic app to facilitate content creation for its rivals on the other.

What separates PicsArt from the giants, according to Nam, is that people who do share there tend to be content creators rather than passive consumers.

“On TikTok and Instagram, the majority of the people there are consumers. Almost 100 percent of the people on PicsArt are creating or editing something. For many users, coming on PicsArt is a built-in habit. They come in every week, and find the editing process Zen-like and peaceful.”

Trending in China

Most of PicsArt’s users live in the United States, but the app owes much of its recent success to China, its fastest growing market with more than 15 million MAUs. The regional growth, which has been 10-30 percent month-over-month recently, appears more remarkable when factoring in PicsArt’s zero user acquisition expense in a crowded market where pay-to-play is a norm for emerging startups.

“Many larger companies [in China] are spending a lot of money on advertising to gain market share. PicsArt has done zero paid marketing in China,” noted Nam.

Screenshot: TikTok-related stickers from PicsArt’s library

When people catch sight of an impressive image filtering effect online, many will inquire about the toolset behind it. Chinese users find out about the Armenian startup from photos and videos hashtagged #PicsArt, not different from how VSCO gets discovered from #vscocam on Instagram. It’s through such word of mouth that PicsArt broke into China, where users flocked to its Avengers-inspired disappearing superhero effect last May when the film was screening. China is now the company’s second largest market by revenue after the U.S.

Screenshot: PicsArts lets users easily apply the Avengers dispersion effect to their own photos

A hurdle that all media apps see in China is the country’s opaque guidelines on digital content. Companies in the business of disseminating information, from WeChat to TikTok, hire armies of content moderators to root out what the government deems inappropriate or illegal. PicsArt says it uses artificial intelligence to sterilize content and keeps a global moderator team that also keeps an eye on its China content.

Despite being headquartered in Silicon Valley, PicsArt has placed its research and development center in Armenia, home to founder Hovhannes Avoyan. This gives the startup access to much cheaper engineering talents in the country and neighboring Russia compared to what it can hire in the U.S. To date, 70 percent of the company’s 360 employees are working in engineering and product development (50 percent of whom are female), an investment it believes helps keep its creative tools up to date.

Most of PicsArt’s features are free to use, but the firm has also looked into getting paid. It rolled out a premium program last March that gives users more sophisticated functions and exclusive content. This segment has already leapfrogged advertising to be PicsArt’s largest revenue source, although in China, its budding market, paid subscriptions have been slow to come.

picsart 1

PicsArt lets users do all sorts of creative work, including virtually posing with their idol. / Image: PicsArt via Weibo

“In China, people don’t want to pay because they don’t believe in the products. But if they understand your value, they are willing to pay, for example, they pay a lot for mobile games,” said Jennifer Liu, PicsArt China’s country manager.

And Nam is positive that Chinese users will come to appreciate the app’s value. “In order for this new generation to create really differentiated content, become influencers, or be more relevant on social media, they have to do edit their content. It’s just a natural way for them to do that.”

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Facebook really wants you to read articles before sharing them

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It’s a common Internet habit: reading an article’s headline and then sharing the work without reading it. There are multiple reasons someone may do this, not the least of which is making assumptions about what the article presents based on its titles. Facebook is taking steps to address this habit, which can be problematic at times, by rolling out a new prompt.

The problem with sharing articles based on nothing more than the title is the risk of spreading misinformation, coming to conclusions that aren’t supported by the article, and lacking key details needed to discuss the matter. Actually reading the article provides context that may give the person sharing it a more informed perspective about the topic.

Facebook has announced that in order to encourage users to read articles before sharing them, it will now show them a prompt if they attempt to share a news article link they haven’t opened. The prompt includes the option to open the article first or to continue with sharing it.

Facebook notes in its prompt, “Sharing articles without reading them may mean missing key facts.” The prompt is described as a test at this time; it’s unclear how widely it is available. As with any test, it is possible it may change in the future or, perhaps, be removed.

This isn’t the first time we’ve seen this kind of feature appear on a social media platform. Last summer, Twitter introduced a similar prompt that encouraged its readers to read an article before sharing it. The feature first arrived on Android before rolling out in October 2020 on iOS.

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Amazon fake reviews scam revealed in data breach with massive potential

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By now, most of us probably suspect that fake reviews on internet shopping sites are a real thing. Whether being offering so-called “free product trials” after buying something or encountering a review that makes the product a little too good to be true, it’s easy to assume that fake reviews are a thing that happens. Today, however, a new security breach is giving us a better idea of just how widespread this might be.

Earlier this year, the folks over at SafetyDetectives discovered an open ElasticSearch database that contained what they call a “treasure trove” of messages between Amazon vendors and Amazon customers regarding fake reviews. The vendors in question typically offered free products in exchange for positive reviews, and in all, SafetyDetectives says that as many as 200,000 people are implicated by the data breach.

More than 13 million records comprising 7GB of data was revealed by this ElasticSearch server, which was closed and secured several days after SafetyDetectives discovered it in early March. SafetyDetectives says that it was unable to identify the owner of that server, making it impossible to alert them that the server was sitting wide open. It’s clear, however, that the server contained communications between several different vendors and customers – not just a single vendor.

Information that was leaked includes email addresses along with WhatsApp and Telegram phone numbers belonging to vendors. Customer data that was leaked includes 75,000 Amazon profile and account links of those who were selling reviews, PayPal email addresses, email addresses, and “Fan names” that could include the first names and surnames of users.

Instead of communicating through Amazon, vendors and the people selling reviews would often communicate through other messaging apps. Review sellers, it seems, were often instructed to purchase the product from Amazon and wait a few days before publishing a positive review of it, often with instructions from the vendor regarding what to say and how to make the review seem credible. After that, they were promised a refund on the purchase price of item – which was often carried out through PayPal to avoid using Amazon’s systems – and were allowed to keep the item in exchange for their positive review.

Obviously, this has some pretty big implications for vendors and Amazon users who were participating in fake reviews, as accounts for both could be terminated and fines could be levied depending on where in the world these vendors and reviewers are based. If you have a moment, be sure to read through SafetyDetectives’ full report on this data breach, because there’s a lot of good information there – including tips on how to spot fake reviews on Amazon.

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Sony WF-1000XM4 earbuds leak with AirPods implications

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Sony WF-1000XM4 earbuds leaked this week with features that look to compete with AirPods on several fronts. Most compelling is the wireless earbuds ability to charge wirelessly, using the case they come in and a new Sony Android smartphone as a charging pad. These earbuds will likely roll with Hi-Res audio support and 6 hours* of battery life.

These earbuds were leaked via internal company document posted by The Walkman Blog. It is hypothesized there that the case and the earbuds indicate the ability to charge wirelessly, complete with Xperia smartphone battery sharing action.

*Early retail packaging suggests that the earbuds will have 9 hours of battery life AND that the battery case will supply 9 hours MORE battery life. This is after the battery case is charged fully. Packaging also confirmed Bluetooth connectivity and IPX4 water resistance.

These earbuds will very likely work with noise canceling technology and voice assistant abilities. This would require connectivity with a compatible smartphone. It would seem that there are spaces for two different microphones, indicating there’ll be both noise cancellation tech and voice assistant support.

These earbuds show simple replaceable comfort earbud tips for users to switch at their leisure. The buds look like they’ll have one SONY logo in gold while the rest of the device is black, save a gold metal accent piece. This accent piece MAY be the part that confirms noise cancellation abilities.

It’s likely these earbuds will be released in June of 2021. At that time, they’ll likely be paired with a new Sony Xperia smartphone with wireless charging support and battery sharing support. This being the first time Sony Xperia phones recorded a profit in many seasons, it might be the best possible time to take a crack at a wider audience, complete with earbuds and smartphones that can capture the audience that’s tired of Apple and Samsung.

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