Snapchat Chooses to Redesign in Midst of Low Ad Sales and Reduced Users

With the share prices reducing considerably and the users base declining, the Venice based company Snap Inc., has finally decided to address one of its long-lasting complaint of the video app being highly confusing.Snap went public in California and became the biggest public offering of the world but has failed to show considerable growth with respect to other social media sites like Facebook, WhatsApp and Instagram.

However, Evan Spiegel, chief executive and co-founder of Snap Inc. has said that they will be restructuring the app in order to appeal to a larger customer base which will ease the usability and the analysts think it to be a strategic shift by the company before it is too late to turn the company around. One of the main changes is likely to be an algorithm based newsfeed instead of a chronological one which is in sync with the other social media sites.

Spiegel is however, warning the shareholders and users that these changes will prove to be disruptive for the users and organization for a short time after which the potential will begin to grow again. The company has already sensed what has happened when they tried a disruptive change when they had introduced an ad buying platform which was automated in nature. Although it had increased the number of ads, it had reduced the prices by 60% which also caused the reduced growth of Snapchat by 13% as per the expectations of Wall Street and also enhanced the losses of the company in the quarter by $319 million.

These changes caused a reduction in the increase user base by 3 million as per expectation of the analysts.

After Snap unveiled its IPO in March at $17, it has been reducing considerably and the trend has been continuing till date after the quarterly results has been announced. While some are of the opinion that the redesigning will broaden the wider base by giving up the cool factor of the company, others think it to be a mature move.

About the Author

Albert Edwords
Albert is acting editor of Truthweek.com with over Two years of experience in the field of online news under his belt. Albert has a great interest in technology and current affairs, particularly, business affairs. Albert has worked with multiple media domains and is currently leading a team of journalists, sub-editors, and writers through his entrepreneurial endeavours.

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