The Problem:
Snapchat’s decreasing revenue and failed monetization plan have investors questioning the relevance of Snapchat. Other platforms like Facebook and Instagram have been able to recreate Snapchat’s key features in their products, minimizing the uniqueness of the Snapchat offering. Snapchat needs to find ways to be relevant to users while creating additional revenue models to stay viable. Investors cannot seem to understand and gain confidence in the growth potential of Snapchat, and the past business strategies did little to increase investor confidence.
Background:
Snapchat became popular because it was introduced as a social media platform unlike any existing at the time. The appeal lay in the urgency to view message and content before it disappeared. This unique aspect allowed for protection of privacy as well as a “now” factor. However, as technology companies increasingly find it easy to replicate these popular features, the other services (namely Facebook, Instagram and Twitter) begin to converge upon one another and the uniqueness of each platform disappears.
Solution:
Such a widely used app throughout the world, Snapchat quickly rose to the top because it allows users to send disappearing images or descriptions of their daily happenings to friends. Yet founder Evan Spiegel chooses not to advertise. The first word of Snapchat spread because a founder’s mom told her friend about the app, who then told her children. News of the app spread through word of mouth to neighboring schools in LA. The app just sparked conversation and then the interest of teenagers throughout the country. If Snapchat were advertised correctly, awareness would be broadcasted to the world, therefore increasing user status.
PS:
Fix the update, it sucks!