Mariia Abaimova

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The way we use social networks is continually changing: just 10 years ago, MySpace was on the rise. Back then, the idea of disappearing messages used by Snapchat and Instagram wouldn’t make much sense to anyone. Lately, a new pattern has emerged: it seems like social networks as we know them are taking a step back, while various messaging apps are on the rise. In 2016, four most popular messaging apps (WhatsApp, WeChat, Messenger and Viber) surpassed four most popular social networks (Facebook, LinkedIn, Instagram and Twitter) in popularity ( Business Insider Intelligence, 2016). In response, more and more social networks started integrating and transforming its messaging functions, like Instagram introducing its direct messages or Facebook separating Messenger from its main app.

But can messaging apps replace social networks? In short, yes, at least for some people. It is easy to understand those who decide to give up traditional social networks. These networks often force you to keep up with people you would otherwise take no interest in. They create so-called ‘information bubbles,’ which can result in bias confirmation and political polarization. In contrast, messaging apps allow you to have full control over the information we receive and in what volume. This makes communication more personal, and, to look at it from the utilitarian perspective, more valuable.

So, what is the future of messaging apps? According to the report from Business Insider Intelligence (2016), we already witnessed the first stage of the chat app revolution: rapid growth. The next stage would involve monetizing this growth ( Business Insider Intelligence, 2016). More and more companies will integrate services into the messaging apps: the way that WeChat started offering functions that allow users to order food delivery and pay bills – all in one integrated app (Mittal, 2017). Soon, more marketers will shift their focus on messaging apps, which, in turn, will give messaging apps an even greater boost ( Business Insider Intelligence, 2016).

Sources:

Business Insider Intelligence, 2016. Messaging apps are now bigger than social networks. [Online]
Available at: https://www.businessinsider.com/the-messaging-app-report-2015-11?r=US&IR=T&IR=T
[Accessed 13 Oct 2018].

Mittal, M., 2017. WeChat — The One App That Rules Them All. [Online]
Available at: https://medium.com/harvard-business-school-digital-initiative/wechat-the-one-app-that-rules-them-all-38a876d04f3b
[Accessed 13 Oct 2018].

Image: atebits.com

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Last week, the stock price of Snap, a parent company of Snapchat, hit the all-time low. This, coupled with a disastrous redesign (yes, the one Kylie Jenner tweeted about) and increasingly annoying ads, makes even the most loyal fans of the Snapchat question the future of the app. But is there any hope left for Snapchat?

In August 2016, Instagram rolled out their ‘stories’ function, that, coupled with their user data and global audience, was a well calculated attack on Snapchat. However, back then, there was still a possibility for differentiation: originally Instagram was the home base for celebrities and influencers, while Snapchat was built off of the idea that you are in a private space with your friends.

However, to compete with Instagram, Snapchat decided to go after an entirely new audience: influencers and their followers. The problem was, their backbone was not built to support it, so Snapchat agreed to make its platform friendlier for brands and influencers by redesigning the application. We all know what happened after: a backlash from users, resulting in a Change.com petition with more than a million signatures, loss of trust of the original users.

This left Snapchat at the crossroads: should they continue the fight for the attention of celebrities against Instagram, or should they find a new differentiation point? Snapchat decided to go for the latter, by heavily investing in Augmented Reality (AR) technology. The company is said to attempt to ‘democratize’ AR for everyone, which sparked a new wave of interest from the brands. For them, Snapchat created an opportunity to create a branded AR game and ‘Show Now’ buttons in AR product trials. In-app games, Snappables that also use AR seem to be favored by the current main user base of Snapchat – teens.

Overall, AR is a good way for Snapchat to buy some time, to figure out what will be the next big step for the company. However, soon enough competitors might start adopting the same technology, and we might need to say goodbye to Snapchat once and for all.

Sources used:

Dua, T., 2018. Snapchat’s betting its future on augmented reality ads — here are all the different types. [Online]
Available at: https://www.businessinsider.nl/snap-stock-price-betting-its-future-on-augmented-reality-ads-2018-4/
[Accessed 22 Sept 2018].

Warfield, N., 2018. Snap hits all-time low, and market watcher sees ‘dead man walking’. [Online]
Available at: https://www.cnbc.com/2018/09/13/snap-at-an-all-time-low-market-watchers-say-stock-is-dead-man-walking.html
[Accessed 22 Sept 2018].

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