Personalized ad platform Fluent is just one of the commentators when it comes to Snapchat’s recent IPO filing. The market has been abuzz with various opinions — both pro and con — about the chances for its success.
First, a little background. Snapchat’s co-founders are reportedly seeking a $25 billion (or more) valuation for the social media company. While it’s true that the IPO filing shows sales spiked 600 percent in 2016, if Snapchat hits its target, it will be more expensive than Facebook, Alibaba, and even Google at the time of their IPOs.
So what does Fluent think about the popular Snapchat social media/messaging app? Based on its survey of more than 3,000 American adults, there are several “major fundamental challenges”:
- About half (48 percent) of American adults think that Snapchat is just a fad.
- Most Snapchat users (62 percent) believe that an alternative to Snapchat will come out that entices them to switch.
- Even young people who use the app all the time believe that they will eventually outgrow it. A majority of younger users don’t believe they will still be using the app after they turn 35.
“Snapchat’s ad formats aren’t resonating with users,’ notes Fluent’s blog. “With its pretty much sole appeal to advertisers being that Snap can help them reach the “coveted” Millennial demographic” that’s pretty negative news.
Another downside is snapchat’s reliance on third party data in order to target ads, unlike big data players such as Facebook and Google with broader data resources.
At this point, it looks like people are breaking into two Snapchat IPO camps. Some think IPO could stand for “I’m Pretty Positive.” But others believe that in this case IPO might mean “It’s Positively Overreach.”