Facebook vs. Snapchat Wars Continue
Facebook and Snapchat continue their one-upmanship as Facebook / Instagram defend their territory and Snapchat works towards an IPO.
Facebook is reported to be in talks with several Hollywood studios to promote movies using AI-like masks, inspired by one of Snapchat’s signature features.
On the flip side, Snapchat is offering to bill brands for ads based on TV-like metrics from Nielsen. Historically, Facebook hasn’t welcomed 3rd party measurement and it has plagued them in recent months. They’ve always taken a walled garden approach, which makes their high profile gaffes highlighting the inaccuracy of their internal data over the last few months worse.
Snap Inc. plans to officially file of its NYSE IPO this week and will likely go public in March at a valuation of $25 billion. It was reported that Snap will hit close to $1 billion in global revenue in 2017, a 3x increase from 2016. By comparison, Facebook’s ad revenue was $6.8 billion in Q3 2016 alone.
Facebook & Instagram have a significant reach advantage in a brand’s eyes currently. Snap is growing quickly but the jury is still out on how well their ad offerings can drive consistent results.