Snapchat is an augmented reality (AR) video messaging application created by Evan Spiegel, Bobby Murphy, and Reggie Brown when they were students at Stanford University. Using the application, users can take photos, record videos, add text and drawings, and send them to a controlled list of recipients.
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The platform has a reported value of $15 billion, with a majority of its usage seen in teenage markets. Initially, Snapchat was considered an outlier in the highly competitive social media industry, with many not expecting it to succeed.
Given its rise in popularity, what does Snapchat mean for entrepreneurs in emerging markets like South Africa?
Despite Snapchat’s impressive numbers and media coverage as the “new kid on the block,” its uptake in South Africa and other African markets is not as strong as in more established markets. The main barrier to adoption in Africa is the aggressive growth strategies already being pursued by the larger social networks.
Taking on the Big 4
WhatsApp, Twitter, Facebook, and YouTube are seeing increased usage in Africa due to higher mobile penetration and more flexible data plans offered by telcos. Given that WhatsApp, Facebook, and YouTube’s benefits are only now being fully realized on a macro level in Africa, a smaller contender like Snapchat faces significant challenges in penetrating the market. The existing social networks’ share of voice and awareness creates a formidable barrier to entry.
These social networks remain aspirational in a market still dominated by feature phones, which provide a minimalist experience. Even with its unique features, Snapchat struggles to compete in Africa, where scale is more highly valued.
“Small to medium enterprises are still struggling to fully utilize the big four social networks effectively to get a return on investment.”
With increasing urbanization and region-to-region migration, staying connected with family remains crucial. People are more likely to join a platform that most of their family uses rather than one that is considered elite. Teenagers in emerging markets are only beginning to access these social media platforms and are just starting to realize their benefits. As a result, Snapchat gets lost in the noise created by the big four.
Should you care about Snapchat?
In short, Snapchat is a platform worth watching, but it’s not one to invest in during the first quarter of 2016. Small to medium enterprises are still struggling to effectively utilize the big four social networks to get a return on investment. Adding a fifth platform only adds another layer of complexity to digital strategies that are already failing to help SMEs gain access to customers and improve cash flow.
The graphic below provides a snapshot of the current digital landscape. As shown by the numbers, Snapchat remains an outlier in Africa, though it is still worth monitoring.
WhatsApp is to South Africa what Snapchat is to Ireland and WeChat is to China. GlobalWebIndex determined the top markets for these three messaging applications in terms of the percentage of usage by online adults.
Brave Insight
Although Snapchat may not be the social network to invest in during this first quarter, its story offers valuable lessons. Snapchat went through many failings before it finally got it right, with the key insight that they arrived upon being central to their success. In the spring of 2011, Reggie Brown, one of the co-founders, said, “I wish these photos I am sending this girl would disappear.”
Soon after, Evan Spiegel heard about the idea and was excited about it, marking the beginning of Snapchat’s story. Their journey illustrates that a brave insight should be the key determinant for any business entering an industry. As an SME, one should ask what key insight they have about the market before daring to enter it.
About the author: A behavioral economist with a focus on digital strategy, Tavonga Musingarabwi is currently a digital strategist at marketing and advertising agency, Aqua. He has over a decade of experience in both traditional marketing and new media marketing. He has worked with many brands on their digital presence and envisions a future where Africa fully harnesses the power of technology. Musingarabwi has also successfully helped South Africa in its bid for the Commonwealth Games of 2022.
