Facebook is attempting to acquisition Snapchat. What is the background on this, and what can we learn about the future of the internet landscape. It shows the way things may develop regarding customer behaviour, the way they connect and what they will expect from consumer brands and retailers.

1. Facebook Acquisition
Offer of Snapchat
Why does Facebook want Snapchat
and what can we learn from it?
Nov. 18, 2013
Version 1.02
© Node1

2. Content
Introduction
Snapchat
Facebook
Background and numbers
Lessons
Impact on internet business
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3. Introduction
Short intro: Node1 provides business, technology
consulting and execution in the connected world.
In this presentation we give a concise background
on the Facebook and Snapchat concepts. Why
these may merge*, and what we can learn from this
dynamic for business and internet in general.
* Facebook has valued Snapchat very highly ($3B+) as a Merger & Acquisition target (Q3 2013)
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4. Snapchat
Snapchat is a photo sharing application. It can
send images to other people and let the
images self destruct within 1–10 seconds
Very popular among younger target groups
Controversial due to sexting* usage of the app
Mobile only
300 Million images are shared per day (Q3
2013)
Recently added stories where you can choose
to keep images in a storyline for up to 24
hours
* Sexting is the act of sending sexually explicit messages
and / or photographs, primarily between mobile phones.

5. Snapchat’s Daily Photo Share Are Soaring
400"
350"
!Daily!Photo!Shares!In!Millions!!
300"
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6. Facebook
One of the largest players in the new media
domain
1B+ users
Originated in 2006, before the mobile revolution
Acquired the mobile only Instagram in 2012
User base is moving to mobile (30+%)
Copied Snapchat concept with an app called
Poke

7. Poke versus Snapchat
Facebook Poke app has not been
successful in winning over the
Snapchat user base
With the continuing growth of
Snapchat and the strategic value of
teen / tweens attention in the
advertising space Facebook has
moved forward to acquire Snapchat
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8. Top$Photo$Sharing$Sites,$Augus
Twi<er%Ne?lix%
1%%
2%%
Share&Of&Average&Daily&Photo&Uploads&Among&Top&4&Sites&(758&Mil
Flickr(
"Old%Media"%
Yahoo%
3%%
Instagram(
7%(
1%(
Facebook%
11%%
21st'Century'Fox'
16%'
News'Corp'
2%'
Amazon%
13%%
New
Media
Apple%
41%%
CBS'
7%'
Viacom'
8%'
Disney'
24%'
Old
Media
Comcast'
24%'
Time'Warner'
Cable'
Snapchat(
7%' 46%(
Time'Warner'
12%'
Google%
27%%
$405'Billion'Market'Value'
Source:&BI&Intelligence&
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9. Top$Photo$Sharing$Sites,$August$2013$
Top Photo Sharing Sites,
August 2013
verage&Daily&Photo&Uploads&Among&Top&4&Sites&(758&Million&Daily&Uploads&Total)&
Instagram(
7%(
Flickr(
1%(
Within the generic new
media space Snapchat
is (still) very small
Facebook(
46%(
Snapchat
46%
Source: BI Intelligence
Within the fast growing
mobile and image
sharing space Snapchat
is a very important force
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10. Facebook versus Snapchat
You know that Facebook and Snapchat are almost
equal when compared along the dimension of
image sharing?
Yep, and Snapchat is growing extremely fast in
usage!
Facebook is still in it’s desktop phase and has
shown this by acquiring Instagram as a fix
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11. The connected consumer
of
the future
I
think
cable
is
a
complete
waste
of
money.
I’m
not
ever
watching
TV
shows.
I’m
just
watching
on
demand.
I
don’t
have
>me,
and
I
hate
commercials.
Teen panelist at Ignition 2013

12. Lessons
Young target groups are moving away from
classic use of Facebook. Mobile, image
sharing and new concepts of communication
are created.
The consumer is becoming more connected
across multiple devices and media dimensions.
The consumer will become the
connected consumer.
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13. Internet has parted with
the classic website history
ed life”
“Connect
ill
evenue w
market r
n
2.5+ trillio
balloon to
years
within 6
r)
(Forreste
Source: Gartner, IDC, Forrester
13

14. Impact on internet business (1/2)
Younger target groups indicate what the landscape will be in
2–4 years.
Consumers will expect information to be more contextually
oriented: time of day, location, whereabouts including images,
video, sound. Shorter attention spans.
Media consumption has already diversified from website to
social context. Mobile, time based information and localized
content are closing in fast.
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15. Impact on internet business (2/2)
CIO’s and CTO’s of retail, media, banking and transport domains
need to realign their information architectures as an early response
to the coming changes of the connected consumer landscape.
The multiple dimensions of consumer behaviour will cascade into
many and unexpected usages of online (web-)service design.
Service providers in the internet arena such as payment service
providers, logistics and web identity management will need to well
defined services making it easy for customer facing companies to
innovate their interaction models. Also called orchestration of web
services in unexpected manners.
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