What marketers should know about Snap’s Q1 2017 earnings report


Let me begin this discussion post by stating that I am a shareholder in Snapchat. Ouch. The earnings report recently came out and the lower than expected growth led to a nearly 20% drop in share prices (again, ouch.). There are plenty of positives such as the parent company “did reverse the quarter-over-quarter daily audience growth deceleration” and in Q1 “166 million people, on average, checked Snapchat everyday”. Snapchat even increased year to year revenue by 286 percent! However, these positives were overshadowed by the negatives. Growth is declining and everyone seems to be pointing fingers at Facebook/Instagram’s recent implementation of “stories” (similar to Snapchats). My theory is that after Facebook failed to buy Snapchat for the proposed $1–2 billion they said down and said “alright, we’ll just have to make a better snapchat”. Instagram stories are becoming increasingly popular and you will notice it if you just pay attention. The moral of the story is clear: there is always going to be competition. We all know Snapchat isn’t going to disappear, but what exactly can they do to turn the negatives into positives? In relation to social media, how can they use their app to continue to revolutionize the media? These are challenges that will be faced by business owners at every level. Snapchat is not “struggling” per say, they have more users than most countries have people, it is simply that the bar has been set VERY VERY high in terms of expectations for Snapchat and right now they are underperforming.