• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechSnapchat

Snapchat is tapping a brand new revenue source

By
Kia Kokalitcheva
Kia Kokalitcheva
Down Arrow Button Icon
By
Kia Kokalitcheva
Kia Kokalitcheva
Down Arrow Button Icon
June 16, 2015, 3:24 PM ET
Snapchat Raising Money That Could Value Company At Up To $19 Billion
The Snapchat Inc. app is seen on an Apple Inc. iPhone 5s displayed for a photograph in Washington, D.C., U.S., on Wednesday, Feb. 18, 2015. Photograph by Andrew Harrer — Bloomberg via Getty Images

Ephemeral messaging company Snapchat has found another source of revenue: location-based filters.

The Venice, Calif.-based company revealed to the Los Angeles Times Monday that it’s starting to monetize the colorful location-based filters it introduced about a year ago. Designed around location themes like a neighborhood or a corporate campus, the filters are sticker-like overlays that users can activate only when using the app in a particular location.

Now, Snapchat will let advertisers design their own branded filters for a fee. McDonalds is the first brand to participate — when users enter any McDonald’s location in the U.S., they can adorn their snaps with a double cheeseburger, a pouch of french fries, and other options.

Snapchat will initially work with big companies with large advertising budgets on the new ad product.

 

The company’s new revenue source is a twist on a proven favorite from other services: in-app stickers. Popular messaging apps in Asia, like Line, WeChat, and KakaoTalk, have been providing scores of fun and varied stickers for users to send to friends via chat, and San Francisco-based photo-sharing app Path also found success when it began to sell sticker packs to its users. But instead of charging users for the colorful add-ons, Snapchat, which now describes itself as a media company, is having advertisers foot the bill in exchange for the chance of reaching Snapchat users with their logos.

Snapchat now has more than 65 million daily active users, and filters decorate more than 1 million posts every day. It unveiled its first ads late last year. Earlier this year, the company launched Discover, a special section in its app that serves up bite-sized content from publishers like CNN and Vice.

 

Under pressure to monetize, social media companies have increasing looked for creative ways to connect advertisers with users in more meaningful and less intrusive ways, and Snapchat’s filters could prove a successful model. Snapchat has raised more than $1 billion in funding to date, and is valued at $15 billion.

 

About the Author
By Kia Kokalitcheva
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

lancaster
AIschools
Two private school boys get probation for using AI to create 350 fake nudes of their classmates
By Mark Scolforo and The Associated PressMarch 25, 2026
6 hours ago
melania
PoliticsWhite House
Enter Melania Trump, escorted by humanoid robot: ‘I’m Figure 03, a humanoid built for the United States of America’
By Darlene Superville and The Associated PressMarch 25, 2026
6 hours ago
bernie
AICongress
Bernie Sanders and AOC launch bill to ban new data-center construction
By Matthew Daly and The Associated PressMarch 25, 2026
7 hours ago
Big TechSocial Media
A court just ruled that tech addiction is real—and dangerous. It could be Meta and YouTube’s Big Tobacco moment
By Kristin StollerMarch 25, 2026
7 hours ago
Warner gestures
AIAmerican Politics
New college grad unemployment will spike to 35% in 2 years, senator warns, forcing ‘Dario, Sam’ to quit AI fear-mongering
By Jacqueline MunisMarch 25, 2026
9 hours ago
Big TechMeta
Meta and YouTube found liable in landmark child social media harm case, ordered to pay $3 million—with punitive damages still to come
By Kaitlyn Huamani, Barbara Ortutay and The Associated PressMarch 25, 2026
9 hours ago

Most Popular

Magazine
The youngest-ever female CEO of a Fortune 500 company is fighting Trump's cuts to keep Medicaid strong
By Fortune EditorsMarch 24, 2026
2 days ago
Commentary
The Treasury just declared the U.S. insolvent. The media missed it
By Fortune EditorsMarch 23, 2026
2 days ago
Success
Palantir’s billionaire CEO says only two kinds of people will succeed in the AI era: trade workers — ‘or you’re neurodivergent’
By Fortune EditorsMarch 24, 2026
1 day ago
Success
The job market is so bad that ‘reverse recruiters’ are charging $1,500 a month just to help people look for jobs
By Fortune EditorsMarch 25, 2026
19 hours ago
Success
JPMorgan’s Jamie Dimon says remote work breeds ‘rope-a-dope politics’ and stunts young workers’ growth
By Fortune EditorsMarch 25, 2026
12 hours ago
Success
JPMorgan has started monitoring the keystrokes, video calls, and meetings of its junior investment bankers—and they say it's for employee well-being
By Fortune EditorsMarch 24, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.