Snap to Lose $2 Billion in 2017
I have expressed caution in the past about the lasting value of Snapchat as a social platform. Its demographic is young; its interface is clumsy and user hostile unless you are a teen; and its communal worth for broader audiences moot.
After a public offering, doubts about the holding power of Snapchat's parent company Snap have spread including on Wall Street. Maybe Snap will be pushed to rethink some things about its flagship product.
(Edited April 6, 2017)
Shortly after posting this I came across an article about a study in the works by the Institute for Public Relations in the U.S. called 'Public Relations is a Snap: How Brands are Using Snapchat to Cultivate Relationships' posted on April 5th by Jamie Horowitz.
The full study will be published in a few months. However, the article provides some preliminary findings summarized below:
- "Industry experts predict that Snapchat use among the younger demographic with increase by 13.6% in 2017.
- Brands are targeting a younger audience, because they will later become customers with spending power.
- Because Snapchat is perceived as more transparent and authentic, it allows brands to be more real with their audiences.
- Snapchat generates engagement so that users do the work by spreading the word.
- Most snapchat content is opportunistic, not strategic.
- Common tactics used to spread content that seem to be the most effective include working with influencers, creating ads, posting organically and creating geofilters."
I trust there will be more substantive findings since these conclusions at least are in most cases self-evident.