For people who expected Snap to be the next Facebook, its stumbles appear disastrous. Department of Justice, is reviewing the ad buys for evidence that Russian agents colluded with the Trump campaign.But while Snap hasn’t figured out how to be a profitable advertising business, it’s proving to be a much more competent media company than either Facebook or Google—and not just because it knows from dancing meats.prepare to testify before the House and Senate intelligence committees on Nov. There are signs of Russian activity on almost every American social network of any consequence, including .(Bloomberg LP is developing news programming for the Twitter service.) Snapchat, however, has found no evidence of political ad buys by anyone in Russia.In fact, Snapchat appears to have no fake news at all. “Humans,” says Nick Bell, Snap’s vice president for content.This was before the 27-year-old CEO said investors should have faith in Snap’s chances against much bigger rivals because “we’ve always been last to market.”Facebook Inc., which together control the most popular social networks and most of the mobile ad market.
The app’s news section, Discover, is limited to professionally edited content, including dozens of channels maintained by old-media outlets such as the .
Much of Snap’s revenue comes from ads that appear in its professionally curated videos, and the company is betting that trustworthy content will ultimately prove more appealing to viewers and advertisers alike.
While Snapchat has embraced its role as a curator of news, Facebook has strenuously objected to suggestions by members of Congress—or anyone else—that it’s in the media business.
On parent company Snap Inc.’s quarterly earnings call in August, Chief Executive Officer Evan Spiegel boasted that the break-dancing tube steak had been seen more than 1.5 billion times on Snapchat, calling it “likely the world’s first augmented-reality superstar.” This goofy glory didn’t do much to soften the bad news: The company had brought in less than 0 million in ad revenue and lost more than 0 million.
After Spiegel answered a question about Snapchat’s slowing user growth, an analyst, who apparently didn’t realize his line was live, said, “I didn’t even understand his response,” sounding as if he were about to burst out in laughter.