Snapchat's game plan to woo more Gen Z users, strengthen demographic base
It is seen as a strategy to fight the financial woes hurting the visual messaging app. This comes after a year when 20% of Snapchat’s staff were laid off and many newly introduced projects like Snap pixy drone, were abandoned to manage resources.
Multimedia platform Snapchat is planning to increase its user base in demography aging older than its primary users – gen Z, in order to meet its business goal of 45 crore daily active users by the end of next year.
Snapchat's co-founder and chief executive Evan Spiegel said the company needs to increase penetration in at least one new large country or demographic by continuing market development efforts in each of the big 5 countries (Mexico, Brazil, Italy, Spain, and Japan) beside investing in age-up strategy to onboard more 30-40 year-old Snapchatters, The Verge reported.
It is seen as a strategy to fight the financial woes hurting the visual messaging app. This comes after a year when 20% of Snapchat’s staff were laid off and many newly introduced projects like Snap pixy drone, were abandoned to manage resources.
“We made some good decisions over the past year, including raising $1.5 billion (around ₹11,900 crore) in February to strengthen our balance sheet, but ultimately we failed to accurately predict both the magnitude and speed of the macroeconomic changes. We didn’t anticipate the War in Ukraine, skyrocketing energy and food costs, persistently high inflation, and a more than 45x increase in the fed funds rate since last September", The website quoted an excerpt from the memo sent by Spiegel.
According to a report from Statista, India is the largest market for Snapchat with over 14.43 crore users, about 3.7 crore more than those in the US. However, most of its users are below 35 years. A year-old data from the same data website shows that about 85% users of Snapchat age below 35.
But in this segment, too, the company is facing tough competition from the growth of short video sharing apps. These apps, like TikTok, are generating more traction in the youth segment, affecting the business of Snapchat heavily.
