Snapchat’s $16 billion valuation was calculated at its most recent funding round in May based on how much investors were willing to pay for shares. Snapchat’s $16bn valuation is beginning to look overblown, as its advertising platform stalls. According to GE’s Manager of Global Social Media Marketing, Snapchat’s lack of in-depth advertising data analytics is preventing brands from embrace the service as a credible channel outside of experimentation, despite ‘staggering’ audience numbers and engagement. The company has been forced into an awkward position by this new reality, with many marketers now looking for ways to get their brand exposure on social media without having to pay Snap any money. An eMarketer’s survey in October ranked Snapchat last for its return on investment for advertisers.
Snapchat’s $16bn valuation is beginning to look overblown, as its advertising platform stalls. According to GE’s Manager of Global Social Media Marketing, Snapchat’s lack of in-depth advertising data analytics is preventing brands from embrace the service as a credible channel outside of experimentation, despite ‘staggering’ audience numbers and engagement. The company has been forced into an awkward position by this new reality, with many marketers now looking for ways to get their brand exposure on social media without having to pay Snap any money. An eMarketer’s survey in October ranked Snapchat last for its return on investment for advertisers.