Where Snapchat Went Wrong
We all know and love the popular social platform of Snapchat. It is undoubtedly many of our favorite social platforms available today, and with over 150 million daily active users globally, the young company has gained significant market share since its arrival. Yet, investors all over the world are leaning away from the social company. Why might this be?
Well there's one very important aspect of their business that they failed to accomplish. It starts with their audience segments. Yes, Snapchat has unequivocal enthusiasm regarding their platform from the millennial generation, but outside of this age group the app hasn't been able to capture other generational interest. The millennial generation (ages 17-30, roughly) only makes a small proportion of the population in the world. Snapchat has failed to incorporate baby boomers, the largest generation in the world statistically, into their business plan. And the reason why Snapchat hasn't tapped into this demographical market like it's rivals Facebook, and Twitter as well to an extent, is that their program isn't simple enough for older generations to get used to, and regularly use.
With this being said, by not being able to effectively tap into this market, Snapchat is encouraging many advertising opportunities to reach the millennial generation, and only this generation. That leaves out a plethora of other companies trying to advertise to other markets, and really limits the companies cash flows. On the contrary, Facebook has effectively engaged all generations into their social platform, leaving companies endless opportunities to advertise to various target markets and audiences. This allows Facebook to raise capital very easily all the while of provideing businesses a chance to reach their target audiences.
Until Snapchat is able to entertain adult audiences in the same manner that they can young adults, they will have trouble competing with Facebook, and therefor have trouble attracting businesses to pay to advertise on their platform. Additionally, Snapchat doesn't have a significant advertising application like Facebook does, and this interface makes it very easy and effective to
advertise on Facebook. Thus, Snapchat also needs to take note of Facebook's success and turn some of those advantages in to opportunities. Snap, Inc. recently came out and said that they are going to move towards a more mature audience, and hope to reach those generations that they to this point haven't tapped into for the most part. It certainly will be interesting to see how Snapchat expands it's base audience going forward, and maybe one day be able to compete with the likes of Facebook if everything goes right for the company.
Well there's one very important aspect of their business that they failed to accomplish. It starts with their audience segments. Yes, Snapchat has unequivocal enthusiasm regarding their platform from the millennial generation, but outside of this age group the app hasn't been able to capture other generational interest. The millennial generation (ages 17-30, roughly) only makes a small proportion of the population in the world. Snapchat has failed to incorporate baby boomers, the largest generation in the world statistically, into their business plan. And the reason why Snapchat hasn't tapped into this demographical market like it's rivals Facebook, and Twitter as well to an extent, is that their program isn't simple enough for older generations to get used to, and regularly use.
Until Snapchat is able to entertain adult audiences in the same manner that they can young adults, they will have trouble competing with Facebook, and therefor have trouble attracting businesses to pay to advertise on their platform. Additionally, Snapchat doesn't have a significant advertising application like Facebook does, and this interface makes it very easy and effective to
advertise on Facebook. Thus, Snapchat also needs to take note of Facebook's success and turn some of those advantages in to opportunities. Snap, Inc. recently came out and said that they are going to move towards a more mature audience, and hope to reach those generations that they to this point haven't tapped into for the most part. It certainly will be interesting to see how Snapchat expands it's base audience going forward, and maybe one day be able to compete with the likes of Facebook if everything goes right for the company.
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