The initial public offering for Snap, parent company to Snapchat, was a success, opening at $24 and closing at $24.48, a figure 44 percent above the offer price, the Wall Street Journal reported. That gives the company a market cap of $28.3 billion, adding roughly $9 billion to its value.
Not bad for a company with slow user growth and plenty of competition. As Reuters notes, a strong opening doesn’t guarantee a rosy future. Just look at Twitter.
For video marketers, getting in front of the Snapchat user is essential, but who is that user? According to fresh data from research company eMarketer, the average age is older than you might have thought.
eMarketer predicts that 70.4 million in the U.S. will use Snapchat this year, up 14.2 percent from the previous year. After that, look for growth to slow through 2021.
Older users are driving that growth. eMarketer previously predicted that 4.2 percent of the platform’s users would be over 45 this year; but increased that projection to 6.4 percent. Older users sign in to view videos, but they don’t create them like younger users do.
And where are the younger users? They’re moving to Instagram which has the heat right now.
“The usage trends are largely the result of a shift in the primary use case of Snapchat,” says eMarketer’s Instagram forecasting analyst Jaimie Chung. “Older groups are now more likely to tune in for content. The platform has multiple partnerships with television networks for mini episodes. Meanwhile, the younger groups are less likely to add Snapchat when Instagram Stories can fulfill their broadcasting needs.”
Snapchat had 6.8 million fewer users than Instagram in 2016, but Instagram is picking up users at a faster rate. This year, Instagram has 40.3 percent of social media users in the U.S., while Snapchat has 36.8 percent.
So what’s a video marketer to do? Keep posting to Snapchat, but definitely become a master of Instagram Stories.