Garnering the attention of younger users is what keeps Facebook and Instagram up at night, seeing that Snapchat will likely eclipse their growth in the coming decade. In fact, the young generation is seemingly opting-out of Facebook altogether. According to Bill Fisher, senior analyst at eMarketer, “These so-called Facebook-nevers are eating into Facebook’s user growth significantly. Many younger social network users are forgoing Facebook altogether in favor of more appealing mobile-first alternatives, such as Snapchat.”
Don’t forget that Facebook attempted to purchase Snapchat for $3 billion over five years ago. When the purchase didn’t go through, Facebook began to copy many of Snapchat’s features such as Stories, camera effects, and filters. In the meantime, the company is continuing to try and leverage its acquisition of Instagram to engage and build a younger consumer base. Yet, as the previous numbers indicate, it isn’t doing such a great job. Clearly, Mark Zuckerberg sees the value and growth potential of Snapchat and what it has to offer young users.
A minor PR hiccup
A major reason why Snapchat lost users and revenue this past year was due to terrible reviews of a major platform update. One review in particular, from celebrity Kylie Jenner, was seen as a big reason why SNAP lost $1 billion in market value in a single day in February.
