- Getty/Michael Kovac
- Kylie Jenner tweeted that she doesn’t use Snapchat anymore.
- That may mean other Snap influencers may do the same, according to one analyst.
- The larger wave of people staying off the app is a real concern for the company.
Kylie Jenner might not be the only one.
The social-media star tweeted this week that she doesn’t use the app anymore, wiping more than $1 billion from Snap’s market capitalization. According to analyst Craig Huber of Huber Research Partners told Business Insider, that could be an indicator that more influencers will leave the app behind.
“That’s the worry,” Huber said, adding that “the pile-on effect” may ensue, meaning that other influencers will get spooked and do the same. “That’s certainly a concern,” Huber said.
He added that Jenner’s tweet is “a negative issue for the company,” estimating that Jenner was attracting about 24 million followers. “That’s a big number,” he said.
Influencers are “a nice plus” for Snap, Huber said. The total market for influencers in 2017 was $1.5 billion according to Business Insider Intelligence’s Influencer Marketing Reporter, and much of that market was eaten by Facebook’s Instagram. But the market could grow to $10 billion by 2022, so Snap “certainly don’t want to lose it,” Huber said.
Jenner’s tweet arrived at a time when many users are upset about the platform redesign. Huber said that “the company should have seen this [redesign backlash] coming if they did a proper job testing this in the marketplace.” He added that “the bigger problem” is the real possibility that “a lot of people in your circle leave it [the platform].”
- Markets Insider