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Snap's ad business is in serious trouble

6 pointsby gregdaleover 7 years ago

1 comment

rblionover 7 years ago
&quot;Snap, Inc.’s third quarter 2017 earnings caught notice: a $40m accounting write-down on unsold Spectacles glasses and a complete reversal on product strategy towards a re-design of the app. In Snap’s ad business, things were no better: Snap’s Average Revenue Per User is only 10% of Facebook’s, revenue growth is rapidly diminishing, and there’s no clear path to fix it. Management attributed the revenue issues to temporary changes in the ad business’s structure, but barring the outsized success of the pending product re-design, the weakness is likely permanent.&quot;<p>I think people are more becoming more and more fatigued with social media. I know I am and I am sensing it more and more with my friends and family. People only share &#x27;life moments&#x27; on Facebook, travel&#x2F;food&#x2F;hobbies on Instagram, career on LinkedIn, politics&#x2F;sports&#x2F;news&#x2F;social commentary on Twitter, and reddit is for who you are when no one is watching.<p>What is Snaap supposed to be in the current media landscape? It&#x27;s pretty buggy compared to others and what made it unique is being compied shamelessly by Facebook&#x2F;Instagram.