Skittles may advertise on Snap, but Smirnoff…may never.
Snap’s got to fix its 15-81 dilemma.
Meaning: 15% of Snapchat’s users are over 35.
But 81% of American consumer spending is done by 35+ aged households (source: BLS).
Said another way, Snapchat’s audience is missing almost all the people who spend the money in America.
Facebook had the same problem years ago: College students only.
But it rid the “.edu” email requirement, and older folk flocked to the largest social media advertising property that no teenager wants to touch.
Facebook fixed it. Snapchat? Maybe.
Video programming on the app is going to be the key. Watching NBC shows on Snap, watching news on Snap, etc.
Snap’s top show E!’s “The Rundown” averages 7 million viewers per week. A far cry from the 800 lb gorilla of TV’s reach, but growth is fast, and (like Facebook) it might be the only way for Grandparents to communicate with their Grandkids.
Snap’s user growth is undeniable.
Snap’s ad revenue growth, however, is upside down. You can’t become a force with 35+ audience @ 15% mix, and that audience spends 81% of the dollars.
Getting those big boy ad dollars is the only thing that can make Snap stock rise, and Snapchat will do anything to make that 15% number rise, and rise, and rise.