Brands Open Accounts on Snapchat, but Many Are Inactive - eMarketer
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Brands Open Accounts on Snapchat, but Many Are Inactive

Producing compelling content may be too challenging

January 16, 2017 | Retail & Ecommerce | Social Media

Snapchat has become a must for many brands—especially those aiming to reach young consumers, who are the bulk of Snapchat's audience. New research found that Snapchat adoption among brands increased throughout 2016, but many of these branded accounts were quickly abandoned.

Share of Brands Worldwide that Have a Snapchat Account, by Vertical, Jan & Sep 2016 (% of total)

According to L2, the percentage of brands that have a Snapchat account increased across all verticals between January and September 2016. Approximately 90% of active wear brands and 78% of beauty and fashion brands had a Snapchat account as of September 2016, while about two-thirds of retail and watches and jewelry brands had an account.

Growing adoption shows that brands have been sold on Snapchat's value, but L2 found that many of these branded Snapchat accounts lay dormant once they're opened. The study pointed out that "...many brands have struggled to produce content for the platform. Inactivity persisted throughout 2016—only 70% of accounts were active (posted within the past month) in January 2016, and only 67% were active in October 2016."

As eMarketer analyst Cathy Boyle explained, brands may be inactive on Snapchat because "Creating a brand presence on Snapchat requires a unique strategy. The more intimate nature of the platform means brands need to think carefully about a new, perhaps more personal, story they can tell about their brand on Snapchat than they would on Facebook or Instagram."

Another reason may be that brand accounts are not found. "Unlike legacy social platforms, user accounts, including brand accounts, are not easily discoverable on Snapchat," she said.

According to Boyle, inactivity may also be because many brands, which at first focused on building an organic presence on Snapchat, may be switching to advertising on the platform.

Snapchat expanded its ad offerings considerably in 2016 and its revenue is rising rapidly. eMarketer estimated that Snapchat's worldwide advertising revenue will jump from $935.5 million to $1.76 billion between 2017 and 2018.

—Alison McCarthy

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