It certainly has been a difficult year for Snap, Inc. as Q3 ends and the holiday quarter begins. With another disappointing quarterly earnings report being expected after its Q2 report, Snapchat is facing a decline in expected user growth. At the end of Q2, the photo/video sharing social platform reported that it had 173 million daily active users, which sounds outstanding until one reviews Instagram’s earnings. In August 2016, Instagram, the Facebook-owned photo/video sharing social platform, introduced a Snapchat-like feature to its 500 million daily active users called Instagram Stories, which has now hit 300 million daily active users.
Back in June of this year, Instagram Stories reported that it had 250 million daily active users. So—in the span of 5 months—the new feature garnered another 50 million users, totaling to almost twice as many users as Snapchat. This number is only going to grow as Instagram redesigns its news feed to get more people to engage with its Stories feature more.
On top of the competition from Instagram Stories, Snapchat also fell out of the top 10 for Top Downloaded Non-Game Apps in Q3 2017 as reported by SensorTower. Then, on Tuesday, Nov. 6, Snapchat users were having technical issues with sending and receiving snaps that caused a riot on Twitter with #SnapchatDown.
With all of this going on, could this be the end of Snapchat?
In fact, according to Piper Jaffray’s recent report, Snapchat remains the most favored app among Generation Z. Forty-seven percent of teens said Snapchat is their favorite platform, which is up from thirty-five percent from a year ago. Instagram only received twenty-four percent, almost half as many as Snapchat. In addition, Snapchat has gained appeal from marketers as advertising spend rose by seventy-three percent, while Facebook ad growth lagged by the end of Q3.
For Snapchat, the road is going to be long to get its feet back up and reclaim the powerhouse title it once had, but it’s definitely here to stay.