How Does Snapchat Make Money?

Snapchat has evolved from a selfie app to a camera company, focusing on content creation. It generates revenue through lenses, geofilters, Snap stories, Discover, and Spectacles. Lenses and geofilters allow brands to overlay content on user photos. Snap stories and Our Story compile user content into feeds. Discover offers mobile magazines with ads. Spectacles are wearable cameras. Advertisers are adapting to Snapchat's vertical video format. The success of Snapchat's revenue model will be clearer post-IPO.

What is the significance of Snap stories and how do they operate?

What challenges do advertisers face when using Snapchat for ads?