The war between Snapchat and Facebook is witnessing a new twist. Snapchat seems all set to tackle Facebook’s clout, and in the past has even shrugged off a takeover bid by Mark Zuckerberg’s social media giant.
According to Morgan Stanley’s analyst Brian Nowak, the Facebook and Snapchat rivalry seems hardly to be the rivalry it was touted to be. Nowak has revealed that Facebook’s daily user growth shows a strong increase, and there seems to be no stopping it, even though Snapchat acts like a major concern. Snapchat has always been a threat in terms of acquiring younger users between the age of 18 and 24, yet according to Nowak’s analysis, Facebook is growing strongly.
“We don’t believe Snapchat is having a material impact on FB’s engagement or daily active user (DAU) growth,” he wrote in a note to investors on Monday (According to media sources). Nowak believes that the ratio of its daily active to monthly active users will continue to rise, and will even hit its largest increase since Q1 2015.
According to the statistics provided by comScore and Morgan Stanley Research, in the fourth quarter of 2014 the growth between the DAU to MAU ratio stood at 66.4 percent and in the second quarter of 2016 grew to 89.8 percent.
While comparing the DAU to MAU ratio for the age group between 25 and 34 years, the number of FB US mobile users stood at 74 percent in Q4 2014 and rose to 86.4 percent in 2016.
For Snapchat on the other hand, the DAU to MAU ration between the age group of 18 and 24 in Q4 2015 stood at 56.9 percent as compared to 66.6 percent in Q2 2016. In the age group of 25 and 34 years for the US mobile users, the growth was recorded at 51.4 percent in Q2 2016 as compared to 38.9 percent in Q4 2014.
Benefit for advertisers
A better DAU and MAU ratio gives a sharper edge to social media platforms as more users frequent the platform on a monthly or daily basis. Investing in conventional and mainstream media has slowly taken a backseat, as digital advertising and marketing takes a considerable share in any company’s marketing and advertising spends.
According to a survey by Social Beat the responses from various CMO’s and marketing heads across the country indicate that digital marketing spends are about one-third of the total marketing spends.
Facebook (89%) and Google (78%) have emerged as the most popular platforms for digital marketing followed by Twitter (56%) and LinkedIn (51%).
Our typical marketing budget is usually 10 per cent of the topline spend
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