snapipo

The Snapchat IPO as a Springboard to Influencer Marketing 

Just a few days ago, Snapchat made a triumphant entry into the stock market; it was sold at the New York Stock Exchange for $24,48 a share, 44% more than the initial price, which had been fixed at $17 a share. The outstanding IPO, which represents the biggest tech debut since 2014, led to a new estimate of the brand’s worth at $ 33 billion, around three times more than Twitter’s worth. This of course reaffirmed Snapchat’s satisfaction with having rejected the acquisition offer of $3 billion made by Facebook in 2013.

But.. What are the consequences for influencer marketing?

Snapchat’s public debut could generate an immediate advantage for brands in terms of visibility. The big success of Snapchat’s IPO will trigger the general public’s curiosity, leading to a further increase in the number of app subscriptions—today these subscriptions already amount to 150 million. Brands that employ the social network for advertising will undoubtedly benefit from this increase, as it brings with it a larger and more diversified audience. 

In the longterm, Snapchat has the potential to redesign the social and digital media space, becoming the newly preferred digital platform for advertisers given its broad reaching ability and its high engagement rate. Its marketing role will become predominant as it continues to find new ways to monetize its platform and keep young consumers’ loyalty as they mature and build their purchasing power. As a whole, Snapchat will also have to offer reliable metrics to marketers and easier means for brands to help customers connect to their in-store realities. 

Finally, it is crucial to mention that one of Snapchat’s main investors was NBCuniversal, which bought the company’s shares for $500 million as part of its digital strategy. The fact that one of the most important media companies decided to invest in a social network helped the social media sphere gain more credibility and momentum. NBC’s investment may also create an influx of new business partnerships between television and social networks. For example, NBC can now target and advertise to Millennials by reaching them on their favorite channels—such as Snapchat—and by employing new protagonists: social media influencers. 

Photo Attributed to: Thinkstock

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