Following Snaps’s Q3 earnings announcement, which saw the company missing again investors’ expectations in terms of revenue and user growth, please see commentary from social media analytics specialists, Socialbakers.
Yuval Ben-Itzhak, CEO at Socialbakers says:
“Ever since Snapchat’s parent company Snap Inc. went public this year, the social media platform has been struggling to keep up with the competition. After falling short of expectations in Q2, with the number of daily users lower than anticipated, Snapchat has continued to see the same trend in Q3. Not even WPP’s announcement in August that they would be spending $200 million on Snap, seems to be helping the company demonstrate its value for marketers.
Due to fierce competition from Instagram which is focused on becoming the main photo & video app, like the recently announced ‘superzooming’ and new filters, the company needs to keep up the pace and act fast. Snapchat needs to demonstrate to marketers how the platform can be used to effectively target, reach, and engage their key audiences, reassuring marketers that they are still a platform that can be used to generate revenue.
Currently, having a programmatic access (APIs) to the Snap platform requires special permission from Snap. Making the Snap platform open to everyone via APIs will not just allow technology partners to add additional value, but most importantly it will give marketers the opportunity to learn about their audience and post engagements.
While Snap is leading the way in augmented reality and it has been adding new functionality for marketers with Snap Pixels, their future survival is going to be based on whether they can grow their audience and influence their audience to buy.”
