Snap had an incredibly disappointing third quarter results, losing $443 million and causing their stock to fall another 15% in after-hours. User growth has slowed, and estimates were missed, as was their revenue target. Snap’s revenue-driving future in comparison to Facebook and Google relies on ad self-serve, something that has brought Facebook and Google billions of dollars, and many small businesses that cannot afford to pick up the phone.
There’s just one problem with that, and that’s all the low-quality advertisers that come with self-serve. Where Snap has been seen as a premium platform for some time, as was Instagram, now it looks to suffer the same potential fate as its larger partners.
At least Spiegel has admitted, after his follies on mobile of focusing solely on iOS, that his Android app is fundamentally flawed and requires an almost total-rewrite, which is being worked on. At the same time the company is going to redo the user-interface of their main app in just a few months, making it friendlier for new (and potentially older) users.