Unless Snapchat figures out a new game plan to create proprietary features and experiences, 2019 will be the end of the popular photo-sharing app. The stock of its parent company, Snap, is scaring away investors. Its user base has plateaued. Each time Snapchat introduces a new feature, Facebook and Instagram copy it. For instance, Instagram users can share permanent photos on their profiles as well as more temporary content on stories that disappear within 24 hours, a feature that was once unique to Snapchat. Instagram is also becoming more engaging for users with the option to share public comments, likes, as well as create polls in stories, all features that Snapchat lacks. With the launch of its latest feature IGTV, Instagram is on the rise for 2019.
Where does the rise of Instagram leave Snapchat? In a very difficult place. That said, Snapchat still has cards to play, such as monetizing its location data for advertisers and building up its content platform as a broadcast media for businesses such as the National Football League, which told Advertising Age that it doubled viewership of its highlights video to 2 million during the most recent season. Another ray of hope for Snapchat: Facebook keeps hurting its own brand, to the point where it is vulnerable to losing advertisers.
What Snapchat needs is a proprietary feature that makes it so lovable to advertisers that they remain loyal no matter what Instagram or Facebook do. To that end, its R&D center is looking for a solution, perhaps involving augmented reality, where Snapchat has succeeded.
But Snapchat needs to work fast before investors’ lack of faith in Snap and pressure from other platforms brings the fabled platform to an end.