Snapchat’s recent recovery may cause brands to reconsider the messaging and social media app for public relations and marketing purposes. Leading up to the company’s recent earnings report, some analysts predicted Snapchat would lose users and income to Instagram, which copied its most popular features and offered superior analytics. Some even predicted Facebook-owned Instagram would “kill Snapchat.”
But Snap Inc., the company that owns the Snapchat app, significantly exceeded expectations when it announced in its quarterly earnings this week. Fourth-quarter sales jumped 72 percent to $285.7 million, blowing past analysts’ projections, according to Bloomberg. It reported 187 million daily active users, up 18 percent from a year ago. Its share price jumped as much as 31 percent.
The numbers indicate that Snapchat can survive and compete against Instagram and other major social networks.
Reasons for Snapchat’s Increase in Users and Ad Revenue
Snapchat’s transition to an automated bid process for selling ads encouraged more ad purchases, although average ad prices dipped. Automated ad sales also eased transactions in developing countries by removing the language barrier.
Growth in users and ad revenue in developing countries accounts for much of its recent success, Tech Crunch explains. It doubled its revenue from outside the U.S.
The photo-centric app previously focused on U.S. teens, who are more likely to use broadband mobile networks and high-end phones than counterparts in developing countries. Videos loaded slowly on weak connections and the app performed poorly on Android phones.
Then it changed its strategy to expand beyond “California cool kids” and pursue teens in the developing world. It improved its app for Android and formed partnerships with wireless carriers to improve data connections. As a result, it gained 3 million daily users in developing counties to reach 47 million users. Revenue in developing countries increased 333 percent year over year.
The numbers mean brands targeting young people in developing counties may wish to consider Snapchat.
Significant Opportunities for PR
The messaging app offers sizeable public relations opportunities for reaching customers in their teens and twenties. By targeting millennial users, brands can acquire customers who will later enjoy more spending power.
Because of high engagement levels on Snapchat, users often help spread a brand’s PR and marketing message.
In addition, as users perceive Snapchat as more transparent and authentic, brands can be more genuine with their audiences.
“Snapchat is the most authentic social network by design,” stated Brigham Young University researchers in an article for the Institute for Public Relations. “Companies are now mainly using Snapchat to break news, introduce new products and connect with audiences for public relations purposes.”
Some effective PR and marketing tactics for Snapchat include: working with influencers, purchasing creative ads, offering deals and discounts, and posting previews and behind-the-scenes peeks of company products and events.
Bottom Line: Previously slighted by some social media experts, Snapchat reported a surge in revenue and new users. The news may cause PR and marketing professionals to re-examine the photo-centric messaging platform in a more favorable light. Some may find that Snapchat, described as a cross between a messaging app and a social media network, can offer significant PR and marketing benefits.
William J. Comcowich founded and served as CEO of CyberAlert LLC, the predecessor of Glean.info. He is currently serving as Interim CEO and member of the Board of Directors. Glean.info provides customized media monitoring, media measurement and analytics solutions across all types of traditional and social media.
