Snapchat is significantly underperforming for digital marketers compared to its tech rivals, according to a note from analysts at investment bank RBC Capital markets, reported by AdAge.
RBC surveyed 1,600 marketers and found Snapchat underperformed in return on investment (ROI) compared to Twitter, Facebook, LinkedIn, Google, Yahoo, and YouTube.
Snapchat’s score of 3.43 out of 8 points beat only AOL in the study, which scored 2.88.
Facebook, with a score of 6.72, and Google, 6.98, lead the group.
Marketers surveyed said they were more interested in advertising on Instagram, Amazon, and Spotify than on Snapchat.
According to the report, marketers explained growing competition from Instagram, poor targeting, difficulties in measuring key performance indicators, and a decrease in user engagement and open rates all contribute to hurting their ROI on Snapchat.
A new report from eMarketer, published earlier this week, saw its analysts cut their estimates Snapchat’s ad revenue in 2017 from $800 million to $770 million, citing “higher-than-estimated” revenue sharing with publishing partners in Snapchat’s Discover section.
This March, Facebook launched Messenger Day, a Snapchat stories clone for the social network’s messaging app. Facebook-owned Instagram launched a similar feature in August 2016 and announced in January it would be putting ads in between the series of photos and videos and said the feature is used by 150 million users each day. Snapchat has 158 million daily active users.
In its S-1 filing, Snap said risk factors for the company included competition from Facebook, Instagram, WhatsApp, and Google, as well as “falling user retention, growth, or engagement.”