Snapchat’s parent company Snap Inc. is going public this week and many buyers are concerned that the company may not hold value in the face of competition. Snapchat has relied on its innovative creativity to stay a float with things like face filters, stories, spectacles, featured content and more. While competitors, like Facebook, rely on those same innovative ideas to keep the company down, because with Facebook and its children companies, Instagram and WhatsApp, doing everything SnapChat can, no one will need the mainly teenage dominated social media app.
Unfortunately, according to an eMarketer Report, Facebook’s diabolical plan may work. While over all, eMarketer has increased Snapchat’s US usage projections for 2017 by more than 5%, expecting 70.4 million Americans to use the platform, they expect Instagram will capture a larger percentage of US social network users, 6% more than Snapchat. And by 2021 eMarketer expects Instagram will have 9.5 million more users than Snapchat.
“We’re projecting this gap to widen as Instagram focuses on growing its user base to maximize reach, while Snap Inc. seems to be focusing on keeping its niche audience engaged and spending more time within the app,” said forecasting analyst Jaimie Chung.
The report also projects that this year, 6.4% of Snapchat’s users will be between 45 and 54, up from the 4.2% previously projected. And projections for users 24 and younger have decreased slightly, as competition from Instagram, WhatsApp, and Facebook heats up.