Snapchat may have a monetisation problem. According to an update by Fluent to its previously published “Snapchat Survey April 2017“, just 12% of Snapchatters have actually made a purchase after seeing an advert on the app.
Users – how Snapchat compares
Younger Millennials (18-24 years) tend to use Instagram and Snapchat in equal rates to Facebook, whilst Older Millennials (25-34) are more likely to use Facebook.
However, Snapchat has a long way to go in trying to catch up to Facebook and sway consumer opinion. The update reveals that 31% of Snapchat users still think the app is just a fad, whilst just 11% of users feel the same about Facebook and 22% about Instagram.
Total Snapchat users also think they may not continue to use the app in 5 years time, questioning Snapchat’s longevity. Daily usage comparisons highlight Facebook’s stronghold with 72% of consumers using it daily, compared to 45% for Snapchat. Both Instagram and Twitter are used less frequently.
Whilst Facebook is being used more frequently to exchange articles and videos, Snapchatters are messaging each other directly. The app is about connecting to friends and family, and perhaps discovering celebrities to follow.
Advertising on Snapchat
Advertising receptivity on Snapchat has room for improvement with 62% of users admitting that they skip ads on the platform. Around 43% of Snapchat users recall seeing ads on the platform, but a mere 12% actually made a purchase based on an ad on the app. By comparison, 41% of Facebook users have made a purchase after seeing a Facebook ad. On Instagram that figure is 30% and on Twitter it’s 41%.
Interestingly, men (49%) ‘always’ skip ads more frequently than women (38%) on Snapchat. However, that figure may be balanced out a little by more men (11%) skipping ads ‘rarely’.
There’s some good news here too…
However, it’s not all bad news for Snapchat. Almost half of Young Millennials (48%) said they had used Snapchat in the past month, compared to 13% for the total US.
In addition, just 9% of them think Snapchat is a fad, which is less than for Facebook and Instagram.
A large majority of 80% of Millennials also foresee using the app in 5 years time, compared to the overall number of Snapchat users (65%).
That said, purchase intent after seeing an advert on the app is low – even among Young Millennials (15%). Potentially, this may create quite the monetisation challenge for Snap Inc.