August 3, 2017:Snapchat may be losing the attention of advertising agencies

Snapchat may be losing the attention of advertising agencies

There has been plenty of discussion this week about Snap, Inc’s share price, which has reached a record low following the Snapchat parent company’s IPO earlier this year.

Now CNBC has published an article based on interviews with ad-agency executives, which flags some warning signs for the company’s business model.

“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,” suggested the piece.

“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.”

It’s a tough but necessary read for Snap, which has been criticised for a perceived arrogance in several of these areas before.

The killer quote, from one exec: “My guess is most people are asking themselves: ‘Why invest in content on a smaller, and slower growing, platform than Instagram and Facebook Stories?”

Why indeed?

Stuart Dredge
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