Snapchat faces further brand backlash as 3 million users abandon platform

March 22, 2019 0 By HearthstoneYarns

The number one rule of digital marketing for brands is to engage with
audiences in the social channels where they are active. It would appear
that Snapchat is in more than a little trouble, with the photo and video
sharing platform losing 3 million active daily users in the past quarter
and brands following suit.

The company has been under scrutiny since H2 2016 and earlier this year saw
beauty giant Mabelline Tweet “Our Snapchat views have dropped dramatically
and we want to stay connected to you all. We’re not sure if this is the
platform to do it anymore, unfortunately. Should Maybelline stay on
Snapchat?” At the same time the company saw its value nosedive 1.3 billion
dollars after Kylie Jenner tweeted she was over the app.

Brands are questioning the return on investment

“If brands and businesses decide that Snapchat is no longer giving them
adequate returns on the money and time they’ve been investing in the
platform, just imagine how much that will cost Snap,” the New York Times
said at the time.

Snapchat defines a Daily Active User, DAU, as a registered Snapchat user
who opens the Snapchat application at least once during a defined 24-hour
period. The company’s DAUs declined 2 percent in the second quarter of 2018
compared to the first quarter of 2018. During the second quarter, Snapchat
launched an update to the redesign, which many users are stating is the
reason for leaving the platform. In its quarterly statement the company
said: “The short- and long-term impacts of changes and optimizations on
DAUs and other user metrics are difficult to predict.”

According to Hubspot, Snapchat’s problem started two years ago, when
Instagram introduced its Stories function. While “Snapchat started the
disappearing messaging wave, it doesn’t mean brands are staying exclusive.
In fact, a lot of brands have already talked and written about decisions to
prioritize Instagram Stories over Snapchat for ephemeral messaging and

Instagram is still the go-to platform for brands with over 700 million
followers and over 200 million followers on Instagram Stories. Both in
terms of reach and demographic Instagram is more user-friendly and as part
of the Facebook group its sheer scale is unmatched.

Snapchat usage and engagement have gone down 15 to 40 percent since the
release of Instagram stories in August 2016. Top creators at its height
received 330,000 views per day on Snapchat in 2015 up until June 2016. Back
in the first quarter this was between 205,000 to 250,000 views per day
(source: TechCrunch).

Whatever its future, Snapchat is hoping its redesign will bring users back
to the platform and its adverts showcasing its latest features and updates
are aiming to do just that. As The News Minute stated in May: “Snapchat was
successful because of its simplicity, something that it has taken for
granted over the years. But the charm of Snapchat may be fading away.”