Why Facebook Is Introducing Snapchat-Like Features
With nearly 1.9 billion users, Facebook (NASDAQ:FB) is the undisputed leader in social media. Its scale and engagement levels make it difficult for any other player to compete effectively, but it has lagged behind some competitors in terms of new features to maintain engagement levels. Competitors such as Snapchat have been introducing engaging features which have attracted younger users. Facebook now appears to be copying these features to ensure that its users stay on the Facebook platform rather than using competing platforms. The company recently launched “Facebook Stories” on its main app, a feature very similar to Snapchat’s Stories. The company has rolled out features in its apps – Messenger, Instagram and Whatsapp – that are very similar to those offered by Snapchat, including camera effects, filters and Facebook Direct. This appears to be an attempt by Facebook to attract and retain younger users to its platform, which can aid in driving advertising revenues.
Targeting Young Users To Drive Advertising Revenues
According to Nielsen, people between 18-24 years of age spent 35% less time watching television in an average month in 2016 compared to 2010, spending more time consuming media on mobile devices. This is encouraging advertisers to shift their budgets towards digital media as opposed to traditional television content. 85% of Snapchat’s users in the United States are in the 13-34 age group compared to fewer than 50% for Facebook. While Facebook is growing rapidly, most of this growth is coming from emerging markets, where advertising spend is likely to be lower. For meaningful growth that will drive meaningful revenues, the company needs to actively engage younger consumers, who spend significant time on social media. Introducing features similar to Snapchat appears to be Facebook’s strategy to attract these users. However, Snapchat is ahead of Facebook in introducing new features frequently, keeping in mind the relatively short attention span of younger users. By merely copying or following Snapchat, Facebook could still have difficulty staying ahead of the curve. It will likely need to innovate independently and introduce new features to keep younger users engaged.
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