Just thought to weigh in with some hard numbers we see at Verto Analytics that might explain the investors excitement around snapchat:
– Snapchat active users (those who actually used the app at least once in a month and not just downloaded it) grew around 15% in the last year in the US
– Snapchat successfully increased the engagement levels of its users in the US during 2016 with the users spending 80% more time on the app than a year ago
– Snapchat also enjoys a significantly higher stickiness than Facebook Messenger and Whatsapp. At Verto we define the stickiness as the proportion of monthly users who use the app on a daily basis (DAU/MAU) and Snapchat scores 49% on that metric vs Whatsapps 41% and FB Messenger’s 38%.
Snapchat is obviously successful in engaging its users, the question remains however, if it can successfully monetize those engaged users.
Size of the audience is not all that matters, engagement is slowly becoming the new reach