Snapchat is leading the way in terms of how social apps can maximise interest in their add-on subscription offerings.
Impressive growth in Q2
Last week, Snap reported in its Q2 performance update that the Snapchat+ subscription package has now reached 11 million paying subscribers. This makes it the most successful of the recent social subscription offerings, far outpacing the subscription services on Facebook and X, which have focused more on verification as a perk. This approach has diluted the value of the product they're trying to sell, which seems like a backward step.
So, how has Snap seen such success with its offering? By deepening its understanding of its audience and providing add-on features that users actually want.
Snap's statement reads: “In 2022, we started Snapchat+ with just six experiences. Now subscribers have access to over 40 exclusive features, including Chat Wallpapers, Custom App Icons, and AI Bitmoji Pets. Our Snapchat+ community has also been the first to try some of our favourite features, including Snapchat for Web and My AI, now available for Snapchatters globally.”
Snapchat has always been more connected with its user community, which is why it has seen great success with its AR features. Because it knows what its users want, Snapchat+ is another indicator of connectedness and being in tune with its community.
Comparing subscription successes
So, how successful is Snapchat+ as a subscription offering? Based on reported numbers, here is where each subscription offering currently stands:
- Snapchat+: 11 million subscribers
- YouTube Premium: 50 million subscribers
- LinkedIn Premium: 10 million subscribers
- Meta Verified (estimate): 600,000 subscribers
- X Blue (estimate): 450,000 subscribers
It's worth noting that these figures are based on estimates calculated from the reported figures from each company, with only YouTube and Snapchat publishing confirmed subscription numbers. Based on the data, Snapchat has seen a far higher percentage of take-up for Snapchat+ than Meta and X have seen with their subscription offerings. While LinkedIn Premium and YouTube Premium are still more popular, they've been in the market for many more years and offer alternate value, like improving job prospects or removing ads from video playback.
Lessons for Meta and X
So, what can Meta and X learn from Snapchat+? Selling verification seems like a dead end, and just because some people will pay for a checkmark doesn't mean that you should be selling them. However, if there's an opportunity for quick cash, it makes sense that they take it. But really, Snapchat has shown that users will pay for add-ons that enhance their user experience, as opposed to faking authority or importance in the app.
That is Snapchat's real differentiator, and Snapchat is winning. It will be interesting to see how much Snapchat+ can grow in the coming months.
