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Is This Snapchat’s Swan Song? Original Shows to Lure Back Users

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Snapchat Snap Originals

Despite its critics, a dwindling user base, and freefalling stock price, Snapchat refuses to give up without a fight. Now the social media app is trying another desperate move to counter Instagram’s popularity and hold onto its slice of the market.

The photo-based social media app revealed its first batch of Snap Originals, a series of interactive shows meant to generate buzz among teenagers.

Snapchat has been losing users for a while now, with the company’s market value dropping by more than $1 billion this year. Its developers hope to lure back their lost audience and attract new users with experiences that people can step into and share.

The new shows are supposed to make Snapchat a competitor not only to Instagram but to Netflix and Hulu as well.

Will Snap Originals Save Snapchat?

Snap Originals are similar to TV shows and include a full series of content offers, from documentaries to teen drama–all shot vertically to be watched from smartphones. For this project, Snapchat is working with influencers and social media stars, like Summer McKeen and Dylan Jordan.

By jumping on the social influencers train, Snapchat aims to generate a new trend with social media users, especially teenagers and young adults. Rumor also has it that the company is ready to onboard more advertisers as well, with commercial spots inside the shows. Nick Bell, Snap’s VP of Content told CNN.

“If the programming really resonates with the demographic… people will go into school or the workplace, [and] they’ll tell their friends about it. We hope that will bring new people into the app.”

The shows have their own section inside the app, are shareable, and can be marathon watched, as well. The first programs revealed last week include a series on university life called “Co-Ed,” and a drama about teen drag queens, “Growing Up is a Drag.”

Fewer Users, More Money – For How Long?

With 188 million users (down from 191 million), Snapchat is way behind Instagram, which claims to have over 1 billion monthly users. Snap lost a lot of its popularity after a woeful redesign in February, that aimed to enhance the use of video instead of photos on the platform but went down like a led balloon with its users.

Scrambling to fix the faux pas, Snapchat’s developers had to pull the plug on their algorithm and go back to chronological listing instead.
Despite losing three million users in the second quarter of 2018, the company managed to grow its revenue.

It seems that brands and advertisers are still interested in Snapchat thanks to its young audience. But, since Snapchat’s stock has been in a tailspin, it’s going to have to work pretty hard to restore shareholder confidence.

Christina is a B2B writer, MBA, fintech and crypto reporter with a fascination for technology and a passion for starting interesting conversations. When not at her computer you can find her surfing a wave or sipping on wine. Sometimes, at the same time.

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Billion Dollar Companies

Procter & Gamble Surpasses Expected Revenue Thanks to Beauty Products

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P&G

Procter & Gamble (P&G) stocks have surged by 5% since Friday morning, as reported by CNBC. P&G announced that its beauty products are responsible for driving sales and helping the company in surpassing the expected revenue in the fiscal fourth quarter of 2018.

Wall Street was expecting earnings per share (EPS) to be $1.09 and revenue to be $16.46 billion. However, P&G’s report shows an increase in both these numbers–$1.12 for the former and $16.69 for the latter.

Compared with beauty products, P&G’s fabric and home-care brands sales jumped by 2%, while grooming, health care, baby, feminine, and family care dropped by 1%, 3%, and 3% respectively.

In this year, P&G’s shares slumped by 11%; the company now has a market cap of $202 billion.

Even though P&G faces competition from other rising startups, the company is positive that the current boom in revenue will “hold up.”

On October 16, Nasdaq published a post anticipating the results from the fiscal fourth quarter. The report stated that net sales would rise by 4% due to P&G’s beauty, fabric, and healthcare products. They predicted that Q4’s sales would come from baby, feminine and family care products. However, these categories are the ones that dropped the most in the latest quarter.

P&G Has Some Fierce Competition

P&G’s biggest competitor in the grooming industry is the Dollar Shave Club, which was acquired by Unilever in 2016. In an interview with Cincinnati Business CourierJon Moeller, the chief financial officer of P&G, said that grooming and baby products were:

“the two sales growth challenges.”

He added that the company was developing and funding ideas to support Gillette. Moeller also said that the stakes were higher since competitors are now expanding their products into Europe.

An online subscription program called Gillette on Demand was also launched by the company. It offers three different packages compared to the two packages offered by the Dollar Shave Club.

Gillette has been around since the 1980s but Dollar Shave Club has managed to attract more attention due to advanced marketing tactics. Currently, P&G expects its organic sales to fall between 2% to 3%, EPS between 6% to 8% and all-in-sales growth by approximately 3% in fiscal 2018.

Meanwhile, David Taylor, P&G’s CEO, recently launched 2019’s CEO Challenge where students solve various business problems. The finals will take place in May 2019 in Dubai.

Last year’s challenge was won by a group of industrial engineering students from Saudi Arabia. These students were also offered jobs in the company. This year, the real-world business problems students will solve are based on its grooming brand Gillette.

Featured image from Shutterstock.

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