Undoubtedly, millennials have been completely won over by Snapchat yet the app is facing its biggest challenge yet. Trying not to get pushed over by Facebook isn’t as easy as ABC.
IPO investors in Snap Inc., the parent company of Snapchat, have now lost all their money on snap stock as the company fell below its IPO price of $17 for the first time after it went public earlier this year. Sadly, it is yet to record profit for this year. Meanwhile Facebook ,Instagram and Twitter stocks have increased while Snapchat takes a nose-dive. Pure savagery if you’d ask me.
This is largely attributed to Facebook, through Instagram, taking the company’s hallmark features and adapting them to its own platforms which has Instagram Stories and WhatsApp statuses hitting more average daily users than Snapchat. Now there are growing doubts about Snapchat’s ability to grow and attract advertising dollars.
Facebook is definitely assaulting Snapchat for refusing to be bought by them. Snapchat’s ability to survive will largely depend on how innovative they will be with the camera and monetize their current user base. This will definitely lead to a filter race between Instagram Stories and Snapchat Snaps with both introducing awesome features that will attract and make users stay on the platform.
A survey by Fluent, a data-driven marketing company, found that Snap users are not sure they will still be using the app in 5 years time. According to the survey, 65% said they think they’ll still be on Snapchat as compared to Facebook’s 87% and Instagram’s 74%.
Can Snapchat survive the competition? Only time will tell.