Snapchat, an app created by Stanford students that allows users to send self destructive photo messages, has had a surge in popularity since its inception in September 2011. Currently, over 350 million “snaps” are sent a day and yet the company still has yet to monetize their service.

Snapchat has released a new update this week that allows users to create their own personal “stories” by creating temporary profiles of pictures from their day that last for up to 24 hours. This could possibly be the step investors are looking for that will create a revenue stream for Snapchat. By having users create these story profiles and become linked to companies with their own profiles, advertising can be narrowed down and directed at certain groups of people creating a viable advertising platform.

While the new stories function uses Snapchat’s strengths to open the door for opportunities, it also increases the competition between it and other social media giants like Instagram, Vine, and Facebook. Now all competing in the market for social updates, each company will have to continue to work on development to separate itself from the competition.

Will Snapchats new update allow them to create revenue and compete with Facebook? Or will the stray from their niche discourage user’s from using their service? Time will tell.

Sources:

With An Eye On Revenue, Snapchat “Experiments” With A Click-To-Buy Button

http://www.independent.co.uk/life-style/gadgets-and-tech/snapchat-adds-stories–but-can-it-take-facebooks-crown-8856329.html

http://www.latimes.com/business/technology/la-fi-tn-snapchat-stories-feature-20131003,0,4668010.story