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Report: Snap Losing Advertisers, Influencers, and More

9 Aug, 2017 By: Doug McPherson

LOS ANGELES – A new report from CNBC says Snapchat is facing serious trouble that includes waning interest from advertisers, issues over measurement, difficulty in finding content, influencers moving to other platforms, and crumbing stock value.

CNBC says “multiple” ad agencies said Snap is becoming plagued by a lack of measurement data, disinterest among social media celebrities, confusion about the platform, and general indifference towards ad agencies.

Adding insult to injury, the ad agencies say competitor Instagram is beating Snap on all of those fronts. And salt in the wound: Business Insider is reporting that Google floated an offer of at least $30 billion to buy Snap last year.

Today, some are even saying the company may simply die a slow death. Victor Ricci, the CEO of influencer marketing company Trend Pie, told CNBC that some brands “think Snapchat is dying, and they want their brand associated with a platform that is growing.”

Social media celebrities are also abandoning Snap in favor of Instagram – where insiders say it’s easier to measure the size of one’s following and use those numbers to score ad deals.

Ricci said with Instagram’s daily active users exploding, social media stars are more likely to spend their time and effort building out their accounts there than on Snap. When Snap went public, Ricci said he noticed a rush of influencers asking them to include their Snap accounts as available for advertisers. Since then, many have abandoned their accounts to focus on more lucrative platforms.

“That well has run dry with our influencers,” Ricci said. “Most of them no longer reach out to add Snap to their profiles, and a lot of them have listed their pages as inactive. A lot of them are focusing on doing Instagram Stories instead.”

Another complaint: It’s hard to find content on Snapchat, which can make advertising ineffective.

For its part, Snap said it has more than 15 measurement products, which it says puts it on with par other major social platforms. The spokesperson also said the company can target specific demographics as well as its competitors.

CNBC also reported that though many ad agencies expect Snap will improve over time, they also say that rival Instagram is far ahead and makes it easy to integrate ad campaigns across other Facebook platforms.

“Part of the issue is discoverability,” said Noble People media director Matt Borchard. “Instagram is built for finding what you don’t follow easily; Snapchat isn’t. If Snapchat can figure that out, that will help, because why make content people can’t find?”

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