Latest research shows Snapchat has US kids hooked

San Francisco

SOCIAL network Instagram has come to look more like rival Snapchat after copying some of its features, but marketers say Snapchat's younger audience and safeguards against poor placement drive enthusiasm for advertising on the smaller app.

Expectations for Snapchat's future tumbled with its stock price after an initial public offering last year, mainly over doubts that Snapchat could compete against Instagram, but last week, Snap reported a 72 per cent rise in quarterly revenue that beat analysts' forecasts and re-ignited confidence.

Snapchat, owned by US technology and social media company, Snap Inc, retains an advantage with the millennial generation who popularised its disappearing messages and animated face masks, despite attempts by Facebook-owned Instagram to woo them away. The advantage among young people is even expected to widen this year, at least in the US, according to estimates released on Monday by research firm eMarketer.

This year, Instagram will add 1.6 million Americans under 25, while Snapchat will add 1.9 million in the age group, eMarketer said. The different demographics mean businesses feel obligated to spend on Snapchat even if they already do so on Instagram, said Aaron Shapiro, chief executive of digital marketing firm Huge. "It's all people who are reaching youth," he said of Snapchat's strength.

Facebook, Instagram and Snap-chat declined to comment on the eMarketer figures. One of the ways that advertisers said Snapchat has distinguished itself is the app's "discover" tab, a prominent section of the app that spotlights short videos from outlets such as ESPN or The New York Times. Snapchat chooses which outlets to work with, giving advertisers some assurance their video ads will run adjacent to professional shows, not user-generated content.

"Snapchat can provide a highly controlled environment for advertisers to reach an audience," said Nick Cicero, chief executive of Delmondo, a firm that advises corporate brands on social media advertising.

Advertisers are rooting for Snapchat and for Twitter to succeed, Mr Shapiro added, so that they do not need to rely so much on the largest Internet advertising platforms: Facebook and Alphabet's Google.

Interest in Facebook is waning among young Americans, eMarketer said in its note on Monday, estimating a 5.8 per cent decline this year in Facebook US users aged 18 to 24 years. REUTERS