Facebook and Google’s duopoly in digital space is a fact well established by subsequent Appsfyler’s Performance Index reports. Even though Facebook and Google are continuously maintaining their duopoly in the market, emerging players are improving their market share and ranking up.
According to Appsflyer Performance Index Edition VIII, Snapchat is on a rising spree and has marked its position to third place in overall ranking in non-gaming market for Western Europe region. Snapchat contributes to 40.4% of total app installs. Appsflyer, a leading platform in mobile attribution and analytics, examined 20 Billion app installs, 11,500 apps and 39 Billion app opens across 370 media networks.
The report stated that the combined market share for Facebook and Google was 45% higher in non-gaming market as compared to gaming space. Talking about gaming market, Facebook maintains its No.1 position despite impressive performance by Google. This might be because, social media giant invests intensively in their gaming space and is gaining more popularity as compared to Google. Facebook has designed its model to effectively meet the gaming demands of users, whereas, Google is more of a search intent model, and thus, exceeds in non gaming space.
IronSource increases its market share globally by two folds surpassing Unity Ads to fourth spot. The fastest growth in terms of volume of app installs that has been witnessed, is by Apple Search Ads. The media network is increasing its share in non-gaming market by 380% and is predicted to have nearly $2 Billion in revenue by 2020.
What Makes Google and Facebook so Consistent?
Google and Facebook has maintained their dominance in the ad tech market due to the increased investment in the type of content, ads and focus on advertiser experience. Due to extensive focus on content strategy, both the firms are aiming to build an enticing ad space, primarily for brand-focused marketers. Since, Facebook and Google are expanding their boundaries with launch of IGTV by Facebook and Google investing in YouTube, marketers are opting for digital platform over traditional one. They prefer direct response mediums and high-impact, brand awareness channels.
The relentless push from Google and Facebook to enhance their product innovation and focus on commerce has helped them sustain their position and serve as an attraction to advertisers. Although, digital ad space is welcoming to the emerging players who are capable enough to challenge this status quo. Snapchat, for instance, is an emerging player with a significant investment in advertising. According to reports, Snapchat has 0.6% of US ad market whereas Google has around 37.1% and Facebook has 20.6% (inclusive of Instagram). It is predicted that by 2020, Snapchat will control nearly 0.8% of digital ad spend.
How is Snapchat on the Tremendous Growth Ride
Snapchat has been on constant upward trend and has been growing faster than many other digital media networks. Snapchat has recently provided its advertising API to all. Until now, the API was only with approved developers. According to reports, only 8% of the marketers admit to advertise or market their product on Snapchat and 72% of marketers have no plans to use the platform for at least the next year. Whereas, 94% marketers use Facebook, 66% use Instagram, and 62% Twitter. Although the numbers in favor of snapchat is still a far cry from Facebook, Google or other social media platforms, it’s global revenue increased by 50% in the first quarter of 2019.
Advertising on Snapchat still has a long distance to cover, but one cannot be oblivious to its popularity amongst the youth. The app is predicted to gain 1.2 million new teen users. The millennial generation is very active and engaging on social media. Estimatingly, if you have 1000 followers on your Snapchat, 900 followers are bound to see your story. Hence, Social Media Influencers Snapchat over Facebook any day.
What gives Snapchat an edge over others?
One thing that makes Snapchat stand out is it’s authority in the use of augmented reality (AR). According to Snap reports, more than 70% of its users engage with AR each month and nearly 250 million snaps are shared each day. As stated by David Norris, Snap’s UK Creative Director, Snapchat’s AR feature is a totally different opportunity for brands to communicate as the majority of users have sound on, and engage a lot with the camera.
It is observed that, 60% of users watch video ads on Snapchat with sound on whereas 85% of Facebook users watch videos on mute. In the first quarter of 2018, Snapchat added 8.9 million active users. The total active audience on Snapchat is 187 million worldwide. In terms of region, Snapchat increased by 3 million users in all regions, intensely positive in Europe.
Can Snapchat overpower the Google, Facebook Duopoly?
Snapchat’s growth is commendable and evident in digital market, but to match the numbers of Facebook and Google, it still might be a distant dream. Where Snapchat has nearly 187 billion active users, Facebook has around a billion plus daily users, and Instagram’s numbers reach up to 500 million. The numbers clearly state that Snapchat’s users are way less than that of Facebook or other social media platforms. Although, as per the growth rate is concerned, Snapchat has shown 18% growth beating 14% of Facebook. Snapchat is up and running strong in the ad tech space, but will it challenge Google and Facebook Duopoly? It still seems to be a long term plan for Snapchat considering Facebook and Instagram are all set to challenge Snapchat in its own AR game.
With Introduction of Stories and Filters by Facebook and Instagram, there was an inevitable threat to Snapchat’s young users. Until now, the social media giant hasn’t been able to match up to AR quality of Snapchat, which is one of the many factors that helps in growth of Snapchat.
So, Snapchat might witness an applauding growth but it has still a long way to go to meet the numbers achieved by Facebook and Google. The ad space is significantly dominated by the two and since, Snapchat is in its growing phase, it might challenge the duopoly in near future. Facebook and Google are pioneers in ad space and Snapchat is all set to dwell in the same sphere. Post opening its ad API to all, Snapchat has also floored its new ad network, namely Snap Audience Network. According to the ET report, Snap Inc. plans to see ads that will make their appearance inside other companies’ app, a move that will enhance the reach of Snap advertisers beyond Snapchat users.