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The Rise of Snapchat and Instagram

Snapchat vs Instagram


27.7.2015

Social media is a vast and fickle place. New social platforms appear one day, then seemingly overnight, disappear. Some social platforms have staying power and are able to monetize their offering; Facebook and LinkedIn; being the two most obvious.

Today we would like to look at Snapchat and Instagram. Both have managed to stay around in a competitive space. Both are now taking those next steps into becoming ‘businesses’ in their own right with a dollar value and paying customers.

Snapchat is a video messaging application that allows users to capture a video or photo that lasts between 1-10 seconds - after the receiver has viewed the ‘snap’, it disappears. It’s a novel concept that challenges the retention of user data model that so many social platforms adhere to. It also gives the platform the illusion of integrity in an era where privacy and ownership of content is a hot topic.

Snapchat currently has 100 million daily active users and there are around 400 million ‘snaps’ sent per day. Snapchat has taken the youth market by storm - 45% of Snapchat users are under 25 years old, compared to Facebook’s 16% stake in the same demographic. http://recode.net/2015/03/26/heres-the-chart-that-explains-why-media-companies-are-obsessed-with-snapchat/

Snapchat has recently invested in Spring, a popular shopping application. It’s a perfect example of a social platform trying to diversify into another sector, in this case, e-commerce.

Snapchat’s new ‘Discover’ feature allows users to find stories from different editorial teams. Discover is Snapchat trying to turn its platform into the go-to destination for news for the Smartphone generation, and the significant advertising revenue that would deliver. Discover has proven to be a winner in its early days with publishers pushing content to Snapchat’s audience. Following this success, Snapchat has introduced ‘Two Pennies’ to advertisers - that offers 10-second ads for only two cents per view.

Instagram is a mobile photo-sharing network, where users take pictures and videos, add filters, and share it out to various social networks. It’s the natural home of the ‘selfie’ - Word of the Year for 2013. It was acquired by Facebook in 2012 for approximately US$1 billion in cash and stock.

Instagram has 300+ million monthly active users and displays a clear gender bias format with 68% of Instagram users being female, while 32% are male. Astonishingly, on Instagram alone there are over 30 billion photos shared in total.

Instagram is also getting serious about revenue, expanding its advertising targeting features based on user interests, age, gender and demographic, using the photos they take as well as integration with Facebook’s behavioural ad profiling. Companies will be able to buy ads on Instagram directly or via Facebook. The new ads go beyond simple photos or videos ‘to carousel ads’, which will show a series of images to ‘tell a deeper story’.

Both Snapchat and Instagram hold great potential for brands to reach and engage with audiences, with clear reach among key demographics. As an advertiser, to gain the most success out of these platforms, having a plan in place is essential. At Adcorp, we work with brands across Australasia to build a clear social media strategy, understanding your audiences, and how best to engage with them on social media.
 
If you’re ready to be heard, start a conversation with us today to find out how we can help to carry the voice of your brand across to your market.

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