EC Snap Fails To Generate Interest And Value

Snap’s Woes

For Snap, the move to the public market hasn’t been an easy one. Not only has it found it difficult to convince the investors of its potential, but it is struggling to keep competitors away and customers interested. According to a report by Statista, a mere 7% of the marketers surveyed were using Snap as their advertising model during the first quarter of the year. That is a far cry from the 94% marketers who use Facebook and 54% who use Instagram.

Facebook and Instagram have been Snap’s biggest concerns. Backed by Facebook, Instagram continues to launch features that are similar to those launched by Snap. Recently, Instagram announced the launch of Archive that lets users move posts that have been previously shared to a private archive. The Archive feature is very like Snap’s Memories that was launched last year to save videos and photos shared on Snapchat in a private folder. For Snapchat, it was a significant feature considering that it boasted of an ephemeral message and let its users save their media.

This isn’t a new thing for Instagram. In August last year, it copied Snapchat’s Stories and created its own version. And, Instagram was not alone. Facebook Stories, WhatsApp Status are all similar to Snapchat Stories – all of them doing better than Snapchat as a whole. For instance, Instagram’s Stories saw 200 million DAUs – a number significantly higher than Snap’s current DAU.

Snap’s Growth

Despite the worries, Snap continues to remain unfazed. To attract advertisers, the company released tools and a partner program to help educate marketers on creating and handling ad campaigns on the platform. Some of the new features include a self-service platform Ad Manager, which allows brands to buy and track ads. It released a browser-based tool Snap Publisher that helps advertisers create campaigns for Snap’s vertical video format. It is working on a Certified Partners program that will provide additional training to Snap’s top ad-tech partners. The upgraded ad services will simplify the process of ad buying for small businesses.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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Adem Tumerkan 3 years ago Contributor's comment

Great article and Agree