Why Telegram Ads will definitely fail?
What is Telegram?
If you might not have known this before, Telegram reached a record 500mill active users, this is interesting, seeing a company that doesn’t make any money paying for all the servers it’s running, Telegram pays hundreds of millions of dollars on servers and staff, this is all covered by russia’s VK founder Pavel Durov. Keep in mind that keeping a server up for hundreds of millions of people is costy, let alone that you don’t get any profit from it. It’s estimated that telegram spends $2mil a day on servers, that’s calculated to a rough $750mil a year, this is an estimation before it reached the 300mil users and before it’s Video Call, Profile Video, Group Voice Chat, Live Locations, 2GB file size limit.
What is Telegram’s status now?
Telegram have reached 500mil users & they’re heading to a goal of 1bill by 2021, that’s not an easy goal, but they seem to have prepared well for it. telegram now have features that have never seen before Profile Video, Live Locations & the 2GB file size, this is actually very costy, with the current estimation telegram’s burn rate is around $1.3bill a year, and Pavel Durov can’t pay for all of that, he said it him self. With all that in mind, Telegram is trying to monetize it’s platform.
Why will it fail then?
The problem is telegram it self. one thing people don’t notice about telegram is that it’s users are not from a modern country, most of Telegram’s users are in Iran, Ethiopia, Uzbekistan … are you getting it? when people advertise they need audience that wants them, not every-country ad. and since telegram users are mostly in low-income countries, no-one would want to advertise there, and no local company is willing to pay for an ad in dollars for an experimental ad platform.
This is just a tip of the iceberg, let me explain some flaws in the platform.
Telegram isn’t made this way.
Telegram is an opensource app, which would mean, people can have another build of telegram that doesn’t contain Ad content, that’d mean Telegram would lose interest in it’s advertisers. What if telegram just close sources it’s code? I won’t use it, neither anyone who loves privacy!
Every Ad platform needs to track users.
Yes, it’s true, whether you like it or not, if an Ad platform doesn’t know you well then no advertiser will pay to show you an Ad. That’s just a simple quote, just because you have a billion users that doesn’t mean everyone wants to advertise in you, Telegram doesn’t understand this simple point, & Tracking users isn’t the Telegram way, else, I will not use Telegram anymore.
Every Telegram Advertiser wants to pay in their local currency.
Telegram has a diverse user demographics, and most of them are relatively poor, Telegram will obviously need you to make payment in a single currency, that’d be hard for any advertiser. especially non-dollar advertisers.
Westerners loves Ads.
The only way Telegram could get away with ads is by getting into North America’s Market. A simple note: “An average American adult sees around 10,000 Ads a day”.
Telegram have never made an Ad before. this is something that will hit it back later. because america is the world’s most ad per capita country in the world, and a billion user platform needs to be there, but telegram refused to make Ads in America, so yeah, it hit itself back.
How will Telegram survive then?
Donations, yes, I will donate $5 a month for Telegram to be free forever, and most of you will too.
This is not some manic response, Telegram really needs donations, that’s how it’ll be great again. I don’t have any explanations for this right now, but I’ll surely update this blog when I do. ?
Thanks for reading my first ever blog.
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