Snapchat Claims Unique Audiences Despite Facebook Growth (May 3, 2017)
Snapchat claims that it is still able to reach unique audiences despite Facebook’s rapid growth. That’s quite a claim since Facebook’s monthly active users now equate to two thirds of the entire US population and it reaches 52% of the US population daily. But app analytics firm App Annie has some numbers which suggest that Snapchat’s audience does include a chunk of users who aren’t active on Facebook or Instagram the same day. So Snapchat’s argument is really one about reaching a narrow base of users that can’t be reached another way, which is really an argument for Snapchat as a complementary ad platform rather than a core platform, given that the reach of both Facebook and Google is far wider. Snapchat’s reach at the end of last year was about one third of Facebook’s in the US, and far lower than that in most markets around the world, so it remains very much a niche play despite its success in a demographic that matters to advertisers.
Facebook Messenger now has 1.2 billion users, its second messaging app to hit the milestone (Apr 12, 2017)
Twitter’s results this morning were a great illustration of the quandary Twitter presents: on the one hand, it’s never been more important or relevant in the world, and on the other it just doesn’t seem to be able to turn that into meaningful user growth, revenue growth, or profitability. Revenues were actually down year on year, especially in the US, while losses also increased due partly to restructuring costs. Monthly user growth was anemic again, while daily user growth accelerated, though Twitter bafflingly continues to refuse to provide actual DAU numbers (it’s likely that they’re well under half of its MAU number of 319 million, so around 150 million). Meanwhile, Twitter is still talking about exactly the same shortcomings in its ad product around measurement, targeting, delivering ROI, and creative capabilities that it’s been talking about for ages now. And it sounds like it’s rethinking a number of its direct response ad formats and may kill off some that are actually delivering revenue because they’re too resource-intensive. At this point in Twitter’s history (almost 11 years in) and Jack Dorsey’s second tenure (a year and a half in), the company really shouldn’t be about to undergo yet another major reset in its strategy. In the meantime, Twitter management is asking investors to take it on trust that they can convince advertisers that the underlying growth in DAUs and impressions means they should spend more money on Twitter. We’re certainly due for at least one more really shaky quarter, but there’s a good chance we won’t see meaningful financial progress in 2017 at all. I’ve done a slightly more in-depth take at Beyond Devices here.
via Twitter (PDF)
Instagram Stories is stealing Snapchat’s users – TechCrunch (Jan 30, 2017)
This would be very bad news if it turns out to be true – celebrities and those who manage celebrity and other accounts on Snapchat claim they’re seeing a significant reduction in views of their Stories on Snapchat as a result of both Instagram’s launch of its own Stories feature and Snapchat’s move to kill the Auto-Advance feature for Stories in its own app. This kind of thing is always worth taking with a pinch of salt – the ranges discussed here are very broad, and some of the data might be outliers – but the trend seems to be consistently downward, and is backed up by some app download data as well. The positive spin from Snap here would be that it’s actually focusing engagement more by only showing users the Stories they actually choose to see, but I’m not sure investors will buy that. Again, any day now we should have some real data from Snap to go on to evaluate engagement and usage, but this is another specific concern they’ll need to address in the S-1 filing. In the meantime, more evidence that Facebook and Instagram’s strategy here is paying off, and that when Facebook broadly launches its own Stories feature the impact could be even more severe.