As the stock market and the tech sector prepare for one of the most highly-anticipated IPOs of the year, speculation abounds over Snapchat’s true value as a social media network, an advertising platform, and a camera company. Snap intends to raise more than $3 billion in its initial public offering this week – but can it maintain its status as a darling tech investment with such an eye-watering valuation?
Snapchat vs. Instagram: Who Has the Users and their Attention?
Instagram has openly admitted to copying features directly from Snapchat – and as we detailed in a post earlier this month, this strategy appears to be working in Instagram’s favor; in January 2017, Instagram continued to attract more daily users than Snapchat (among U.S. adults, ages 18 and above).
Verto Analytics took a deep dive into Snapchat and Instagram user: how often are consumers actually using Snapchat and who are they?
Snapchat Attracts More User Sessions
While Instagram may be winning the user numbers game, Snapchat users launch the app more frequently – and this trend continued to increase over the second half of 2016. Verto Analytics data shows that the average Snapchat user racked up 148 sessions per month in December 2016 – nearly a 30% increase in user sessions compared to June 2016. In comparison, the average Instagram user increased their monthly sessions by less than 10% over the same time period, from 77 sessions per month in June 2016 to just 82 sessions per month in December 2016.
Millennials Spend More than 10 Hours Per Month on Snapchat
Given its reputation as a Millennial-friendly network, it’s no shock that Snapchat continues to attract the attention of younger users. Verto data shows that by December 2016, users ages 18-24 were spending an average of 507 minutes (more than 10 hours) on Snapchat per month – an increase of nearly 60% compared to just six months earlier (in June 2016, this same user demographic spent just 290 minutes per month using Snapchat). More surprising is the fact that Millennial parents seem to be investing more of their time into the platform – users ages 45-54 spent an average of 426 minutes (7.1 hours) on Snapchat in December 2016, a 400% increase compared to June 2016.
Is the Snapchat IPO Overhyped?
While Snapchat has boosted its engagement stats with a few key user demographics, they’re still fighting to increase their overall user numbers. Will a massive injection of cash help them gain = and keep – the attention of consumers beyond Millennials and their parents?