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Companies that want to target younger users can in turn move their advertising dollars elsewhere
The Snapchat email application is visible on the phone screen on August 3, 2017. PHOTO: REUTERS
Snap has been pinning his hopes on the over 35 age group to revive the growth of users of its photo messaging app, a change of buyers that, according to buyers, could turn against them.
Wooing Older People on Snapchat, Known for Endangered Messages and Comic Book Filters, Could Alienate Its Cult of Young, Ad Buyers, and Other Awesome Managers . Companies that want to target younger users can, in turn, shift advertising dollars elsewhere, which hampers Snap's main source of revenue, which is losing money.
Look no further than Facebook, warns Jenny Lang, Vice President of Integrated Investments at the full service advertising agency UM Worldwide, which counts among its customers Coca-Cola and Sony. The social media platform has lost new users in recent years, while earning older fans.
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"I hope they will not change too much, it's a fear in your head," said Lang about Snap, adding that it was harder for younger advertisers to advertisers, as more and more applications were competing for time. In August, the research firm eMarketer estimated that Facebook would lose 2.2 million users between 12 and 17 by 2022, although Facebook's 1.49 billion daily users exceed Snapchat's 186 million.
The pressure is on Snap, seven years old. Two consecutive quarters of user losses drove down two-thirds of the February peak. Snap declined to comment on his growth plans and his relationships with advertisers.
Evan Spiegel, Snap's 28-year-old CEO, for the first time discussed the expansion of Snapchat's call towards the end of 2017 and called users over 34 years old a "challenge of marketing and communication "when calling for results.
A redesign of the design by February 2018, which made it harder to replay the stories of friends and separated these stories from the content of the editors, attracted the condemnation of the base Snap.
Snap still managed to increase revenue with an easy-to-use self-service ad platform. He also hopes to gain more younger users outside the US by correcting his glitchy Android app.
But several players in the advertising industry have said they risk losing the millennium generation to newcomers such as the abbreviated video application TikTok, which has no paid commercials, or rivals like Instagram Facebook .
There are signs that Snap attracts older users. The AARP website, an advocacy group of older citizens, announced in February that some were turning to Snapchat for flirting and hiding.
Nevertheless, it may be difficult to get wide adoption given the appeal of Snap for youth, said critics of the strategy. 15% of Snap users were over 35 when it went public in 2017.
Parents might be convinced to use Snapchat because it's their kids' favorite email app, and more intuitive browsing could help, said one person familiar with Snap's plans. Another area to improve is the content of the application, said the person.
Snapchat's original design reflected a keen understanding of younger users, advertisers said. For example, parents can not easily embarrass their children by tagging them on photos.
"Snap is a special place where teens feel more comfortable and that has helped them grow in the United States," said Richard Guest, global digital director of creative advertising agency DDB Worldwide, which has developed the Snapchat commercials for different brands of Mars.
Issa Sawabini, a partner at Fuse Marketing, has created a Snapchat ad for Amazon and Starbucks.
"Maybe you do not want to be on the same platform as your parents," he said.
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Teenagers were loyal to Snapchat while Instagram had introduced copy features over the past two years, said Jackie Hernandes, social and digital media strategist, of The Community's multi-service advertising agency, which Verizon account and YouTube as customers.
Snap should focus on her demographic makeup, she said.
Snap sought to distinguish itself from rivals with Discover, offering original scripted shows and content from publishers such as The Washington Post alongside "influencers", people who closely follow the networks social.
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Advertisers who target an older audience may be uncomfortable placing marks next to that content if it is hosted in the same place.
Snap has struggled to translate user data into suggested content, and is considering separate versions of Discover for kids and adults, said the person familiar with Snap's projects.
Richard Greenfield, a media analyst at BTIG Research, criticized Discover's layout in the research notes, noting that more traditional sources appear alongside slightly-dressed influencers.
Snapchat stories, videos or photos that disappear after viewing, attract teens and younger generation, constantly sharing with friends, but may also deter an older audience, said Ryan Pitylak, director of the 39; Unique Influence advertising agency, subsidiary of the advertising holding company MDC Partners, which worked with the mobile video game company Ludia on Snapchat.
"If they change the features too much, that's because I think you'll have the problem of losing younger users," Pitylak said.
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