Actionable news
0
All posts from Actionable news
Actionable news in SNAP: Snap Inc,

Snap is now alienating the very people it needs to survive, say ad agencies

Snap is facing yet another dilemma as advertisers are increasingly losing interest in the platform.

With all the other challenges the company faces — not the least of which is a cratering stock — the company badly needs to show investors that it is a unique way for advertisers to reach the coveted young demographic.

But multiple agencies CNBC spoke with, many of whom did not want to be named, said that problems with the company — including a lack of measurement data, disinterest among social media celebrities, confusion about the platform, and general indifference towards advertising agencies — are leading more of their clients to abandon it. Interest among brands is flat — at best — or declining, they say.

Meanwhile, those media, influencer and creative agencies say competitor Instagram is beating Snap on all those fronts.

Some brands "think Snapchat is dying, and they want their brand associated with a platform that is growing," said influencer marketing company Trend Pie CEO Victor Ricci.

One example: Marketing platform Curalate rolled out a new product last month called Showroom, which makes mobile-friendly shoppable links for social media platforms. When Snapchat introduced Paperclip — which lets companies link to external websites — it expected that many brands would jump on the opportunity.

Instead, less than 10 percent of brands using Showroom wanted to use Snapchat, with the majority opting to go with rivals Facebook, Instagram, YouTube and Twitter.

"Clearly [the brands] deprioritized it," said Curalate CEO Apu Gupta.

Across the board, ad agencies complain about Snap's lack of data and reporting, including the fact that Snap doesn't show how many...


More