Close relationships helped Snapchat solve distribution

Transcript

Transcribed by machine (Whisper) from the episode’s audio, so a word may be off here and there.

1. 3:21

   Well, I think it's really interesting, you know, in terms of the examples that you just shared, right, of TikTok and threads, because you just shared two examples of people who figured out distribution. And I think that that's actually one of the hardest things to figure out in consumer technology today. We were so fortunate when we created Snapchat, the mobile phone, you know, in the app store were just getting started. So people were downloading lots of new apps all the time. They were really excited about trying new services. You know, Instagram, I think it started a year before Snapchat or something like that.

2. 3:50

   So there was a real appetite to try new apps and new services, and that's not the case today. It's a lot harder to get distribution for new ideas and new services. aren't downloading as many apps now as they used to. And both TikTok and Threads figured out distribution, which is why I think there are more recent examples of success. TikTok did it with money, which I actually thought was really innovative. They spent billions of dollars subsidizing both sides of their video marketplace, acquiring customers to watch videos and then paying creators to make videos. And so they were able to bootstrap their ecosystem. And I think with Threads, obviously, they were able to leverage the amazing distribution that Meta has across all their other products. So I think so much of consumer technology focuses on, you know, am I

3. 4:35

   building the right product? Do I have product market fit? Have I, you know, built something that's really going to resonate with customers that they're really going to want to use all the time? And I think people don't spend nearly enough time thinking about, you know, distribution and figuring out distribution. And that seems to me to be a huge differentiator. So, you know, as I reflect on the early days of building Snapchat, the thing that we figured out in terms of distribution, especially when it comes to social, was that, you know, back then people believed that there were network effects in social networks that meant that the more people you had using the service, the stickier that it is, right? And so there was no way to beat the biggest networks because those were the most valuable. And what Snapchat figured out that was, I think, different

4. 5:19

   was that, you know, despite the fact that there were much bigger networks that connected more people, what really mattered was connecting you to the right people. And so if you could just connect someone not to all their friends, but to their best friend, to their partner, to their spouse, the people that they cared most about in the world, that that's where the majority of the value is in the network. And so that's what really allowed us to grow in those early days. You know, we had the benefit of the app store and mobile distribution, but we also had a different way of growing our service, which wasn't about having the most friends. It was about having your close friends. That is so interesting. It's something that I've been thinking a lot about, actually,