Part 5/9:
As user engagement dipped, metrics such as monthly output and time spent on the app started to portray a concerning decline, with Snapchat users spending only about 3 hours and 20 minutes per month compared to TikTok's 34 hours. This pattern raises questions about the long-term viability of Snapchat's current business model.
The Challenges of Monetization
Snapchat primarily relies on advertisement revenue. However, it faces unique hurdles in this area. Many social media platforms benefit from extensive user-generated content driving high engagement, which creates ample opportunities for advertisers. In contrast, Snapchat’s content consumption model is not geared toward lengthy scrolling experiences, making ad visibility weak.