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Snapchat Is Losing Ground With Advertisers and Celebrities

With earnings coming next week, at least some investors are betting on a bump for the floundering stock of Snap Inc. But advertisers say the company still isn’t giving them the data or support they need, and high-profile “influencers” appear to be showing waning interest in the company’s core Snapchat platform, casting doubt on its long-term health.

Ad agencies complained to CNBC this week that Snapchat’s approach to metrics, including its use of an abstract “score” rather than more conventional follower counts, was a turnoff for companies. Compared to competitors, Snapchat offers less insight into clickthrough rates and audience profiles. Several ad agencies also said that Snap’s outreach to them has also been lacking since the company’s March IPO.

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The celebrities, models, and socialites who attract the largest social media followings have also been shifting away from Snapchat and toward Instagram, which last year imitated Snapchat’s core Stories feature among others. Snapchat, prioritizing “authenticity” and real-world friendships, has not cultivated celebrity engagement as aggressively as other services; the company’s disinterest seems to be driving down Snapchat viewer numbers for months.

For both advertisers and personalities, Instagram’s larger audience and arguably better discovery and usability are also siphoning attention from Snapchat, while Snap’s continued stock slump seems to be generating broader skepticism. According to one marketing CEO speaking to CNBC, some companies “think Snapchat is dying, and they want their brand associated with a platform that is growing.”