Product Reigns Supreme!

Bitmoji is a free App that you can download to your phone that allows you to create your own Avatar that you can then use across different platforms. I use Bitmoji on Facebook, Instagram, Twitter and in my text messages. You can customize the skin color, facial features, hair, clothing, accessories, makeup and more!

The Bitmoji App automatically updates the options, so you can usually find season and holiday relates Bitmoji’s as well as those that are always a part of the store (like the “Call Me”) example below.

Once you create your Bitmoji you can then install it onto your keyboard and use it the same way you do when you type texts or use emojis. Here are a couple of my favorite Bitmojis:

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Here are some examples of the many options you have:

This morning, I noticed for the first time an advertisement for Bitmoji Merch, integrated into the existing platform (2nd image on the first row):

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So then when you go into actual Bitmoji App there are tons of options for actual merchandise that you can buy featuring your Bitmoji. Everything from paper products like cards & post it notes, to apparel like t-shirts and aprons to accessories like bandanas & flasks, all with your bitmoji in different scenes.

I love this because this is a perfect example of how you can create a free product, in this case an app, and then use that free app to sell products and earn revenue. Bitmoji was created in 2007, and then it was acquired by Snapchat in 2016. The Bitmoji store launched in November of last year, but this is my first time becoming aware of it after seeing the add for merch integrated into the Bitmoji store.

This is a brilliant strategy for Bitmoji, because it is the #1 app in Utilities. In April of 2017 it was the most downloaded app in the U.S., U.K, France, Canada and Australia, and recent figures estimate that the app has had over 15 million downloads. The cheapest item in the store is 95 cents (a postcard) and the most expensive is $41.95 (cocktail napkins).

You can check out Snap Inc.’s Report regarding Q4 of 2018 and annual earnings here. While there wasn’t any information specifically about Bitmoji’s Merchandise Store, I would assume that it contributed to revenue. Also they are anticipating revenue to “be between $285 million and $310 million, or grow between 24% and 34% compared to Q1 2018” for this quarter.

So what are the key lessons and takeaways for us:

(1) Create free products or services that can serve as an advertisement for paid products or merchandise.

(2) Advertise for those paid products and merchandise with the free (highly accessible and engaging) products or services.

(3) Allow personalization or customization.

If you have ideas or additional insight, please don’t hesitate leaving a comment! The purpose of this blog is for us to grow, learn and expand together!

BusinessDonnie SmithComment