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Will Snapchat’s IPO Influence the App’s Future?

Snapchat, the social media app best known for allowing users to send and receive images and videos that disappear in 10 seconds or less, has blown apart the world of social media as one of the pioneers of the “story” concept. Now, other apps like Instagram and Periscope are harnessing this component, but Snapchat remains immensely popular, with most of its users under the age of 18. The company itself is valued at over $20 billion after being on the market for just five years.

Earlier this month, Snapchat took the next step – releasing its IPO to investors eager to cash in on this opportunity. And when you talk about following the money, it extends further than investors – advertisers, already keen to reach younger audiences, are using sponsored geotags to promote brands to an engaged following.

However, concerns over the lack of marketing metrics for ads and demographic info have led many advertisers to transfer their budget into Instagram advertising instead, reaching a similar audience. Forbes says Snapchat is losing more money than ever, but also earning more, too, which may fluctuate in the months following the IPO.

As for its 158 million daily active users? No one seems to be giving up on Snapchat just yet. Users open the app an average of 18 times a day, which is all but compulsive usage. The model works – but is it sustainable?

Check out the full story on Mashable for more info on Snapchat’s IPO and industry experts’ opinions on the future of the app.


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