Is Snapchat 'just a fad'? Nearly half of surveyed US adults think so (2024)

Dive Brief:

Nearly half of U.S. adults think video messaging app Snapchat is no more than a "fad," according to research by the company Fluent provided to Marketing Dive. Fluent surveyed 3,327 adults and found63% of those aged 18 to 24 and 40% of those aged 25 to 34 are on Snapchat.
Sixty-two percent of Snapchat user respondents believe a different, "better" app will come along that they will use instead of Snapchat. The majority of younger users surveyed said they don’t believe they will still be using Snapchat after they turn 35.
When asked about advertising on the platform, 69% of Snapchat users said they skip ads either "always" or "often." The majority of those surveyed said they do not turn to Snapchat to follow news, sports or entertainment, and Fluent stated that "branded content" seems to fare better with users of Instagram Stories, which is often labeled a Snapchat clone.

Dive Insight:

Snap Inc., Snapchat’s parent company, was recently met with a chilly reception from London analysts and investors on its pre-IPO roadshow, one of the first major bumps the startup has hit since it filed its SEC paperwork earlier this month. On the stop, Snap was reportedly peppered with questions about its slowed user growth, as some investors are concerned the platform's audience is already starting to stagnate at a little over 150 million daily active users.

The Fluent research underscores that many actual Snapchatters also think the app is a bit of a flash in the pan. Snap has been heavily touting a young, highly engaged user base as its core strength, but the Fluent findings suggest those same young users are fickle and might not stick around as the app matures along with them. This could be one reason why Snapchat put a heavy focus on the importance of future innovation for the company's growth in its SEC filings.

Snapchat has also struggled to show strong engagement metrics and ROI for marketing efforts in the past. Continued indifference and outright avoidance of Snapchat ads might prove to be a worrying sign for brands on the platform.

If Snap's IPO does not match its goal valuation of $14 to $16 a share, some of marketers' bullishness on Snapchat may cool. While Snap has been eager to position itself as a big digital player — key advertising industry figures have also suggested it has the potential to rival Facebook — some have argued its user numbers and financial guts look a lot more like Twitter's did before its IPO. Twitter has since seen stagnating audience growth and ad revenue.

That’s not to jump the gun and claim Snapchat is D.O.A. If anything, the platform has continued to attract the attention of both major media brands and publishers alike, and it plans to roll out a robust stable of offerings like original video content in the near future. Snap also keeps its cards incredibly close to the chest and the full picture of what it will do once flush with more investment cash for R&D is unclear.

So while many users think of Snapchat as just a "fad" at the moment, those surveyed also really haven't experienced the full slate of what the app has to offer or have a sense of what it might look like a few years — or even a few months —down the road.

I've been entrenched in the tech and social media landscape for quite some time, analyzing trends, user behavior, and market dynamics. Let's break down the concepts and themes from the article:

Snapchat's Perception as a Fad: The article highlights a significant portion of U.S. adults perceiving Snapchat as a temporary trend, especially among younger demographics. Fluent's research, surveying 3,327 adults, reveals the attitudes of users aged 18 to 34 toward the platform. This perception is crucial in understanding how Snapchat is viewed by its user base.
User Demographics and Engagement: The research indicates that 63% of 18 to 24-year-olds and 40% of 25 to 34-year-olds are active on Snapchat. However, a notable percentage of users in these age groups believe that a superior app will emerge, potentially displacing Snapchat. Moreover, the majority of younger users don't envision themselves using Snapchat beyond the age of 35, indicating a perceived lack of longevity.
Ad Skipping and Content Engagement: A significant concern for advertisers is the high rate of ad skipping on Snapchat. Around 69% of users reported frequently skipping ads, raising questions about the platform's effectiveness for marketing campaigns. Additionally, users seem less inclined to turn to Snapchat for news, sports, or entertainment, favoring other platforms like Instagram Stories for branded content.
Investor and Analyst Reception: Snap Inc., Snapchat's parent company, faced skepticism from analysts and investors during its pre-IPO roadshow. Concerns were raised regarding slowed user growth and the potential plateauing of its audience at approximately 150 million daily active users. This skepticism could impact the company's valuation and long-term prospects.
Challenges and Future Strategy: Snapchat has struggled to demonstrate strong engagement metrics and return on investment for marketers. Despite this, the company is emphasizing the importance of innovation and future growth in its SEC filings. The article suggests that Snap's focus on evolving with its user base is vital for sustained success.
Comparison with Other Social Platforms: The article draws parallels between Snapchat's situation and that of Twitter before its IPO, highlighting similar concerns about audience growth and ad revenue stagnation. However, it's also acknowledged that Snapchat continues to attract attention from media brands and publishers, aiming to expand its offerings, including original video content.
Uncertain Future and Potential Growth: While there's skepticism about Snapchat's future, the article notes that the platform's full potential might not have been realized yet. With plans to introduce new features and content, coupled with potential investment for research and development, Snapchat's trajectory could change substantially in the coming months or years.

In essence, the article paints a complex picture of Snapchat's current position, emphasizing the uncertainties regarding its longevity, user engagement, advertising effectiveness, and the strategies Snap Inc. is employing to address these challenges.