Snap said its TikTok competitor Spotlight had 100 million users in January 2021, just two months after its launch. This number indicates that the service made its debut successfully and has taken over the rightmost tab inside Snapchat.
Snap CEO Evan Spiegel said in a conference call with investors this afternoon about the company’s earnings for the fourth quarter of 2020: “We are very pleasantly surprised by this momentum.”
However, TikTok may still occupy an important position in terms of new services. TikTok said that as of June 2020, there were 100 million monthly users in the United States alone, and there are signs that the app has continued to grow since then.
On the other hand, the head of Instagram stated that he is “not satisfied” with the short-version video competitor Reels.
Snap invested a lot of money behind Spotlight to help this part continue to develop. The company promised to donate US$1 million to creators every day for more than a month to attract people to post videos and add interesting content for viewing.
The plan seems to be working, and some creators see this service as a quick way to make a lot of cash. Spiegel said in his speech that creators now upload an average of 175,000 videos per day.
Snap CFO Derek Andersen said in his speech: “Although the development of this new content platform is still in the early stages, we are very encouraged by the initial results and excited about Spotlight’s potential to further expand profit opportunities in the future.”
Now that the service has embedded video, Spiegel said Snap can start to do more work around optimizing its recommendation system. Advertising will come all the way, but for now, the company will “focus on increasing engagement.”
The spotlight is still more restricted than TikTok. The exploration options are limited. You can’t mix the sound or jump into the rabbit hole of dancing videos to find popular songs. Both of these features help TikTok continue to develop.
It is also worth noting that when the company has long focused on daily users, Snap’s figures are monthly users. This indicates that the daily usage of this feature is much lower because someone only needs to open the tab once in January to treat it as a monthly user. Snap now has 265 million daily users every day, compared with 249 million in the previous quarter.