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Part of the argument here for the valuation is that teens are leaving Facebook and moving over to services like SnapChat and Instagram. Maybe I'm missing somet
by junto 13y ago
Part of the argument here for the valuation is that teens are leaving Facebook and moving over to services like SnapChat and Instagram.
Maybe I'm missing something, but do teens really have that much disposable income? Do they click on / respond to online ads?
Surely older people are a much more valuable target market? When I look at my parents, they are much more likely to be duped into buying something through clicking on ads. Most of the time my parents don't even realise they are clicking on an ad.
Sometimes I think this tech market is aiming as the wrong segments.
- DenisM 13y agoTeenagers are prime audience for brand advertising. Fashion, makeup, clothing, drinks - brands want to get them young while they are still impressionable.
- jroseattle 13y agoNo, but those teens are going to transition into adults, with (hopefully) some disposable income at that time. Don't know if it justifies the valuation, but certainly being a default in a large market is worth something to somebody.
- taude 13y agoAnd they'll transition into the next big thing, too, just as quickly as they transitioned onto Snap-Chat? There can probably be made a good argument that younger generations don't have brand-affinity like older people. Younger people are being raised to move quickly from thing-to-thing? (I don't really know, but it sounds like someone should research this.) I cite some personal experience of younger family members who used to use Facebook when they were in college and when it was a college-only-thing. Now they don't use it anymore.
- jroseattle 13y agoExcellent point, and I think that's the bet -- capture their attention long enough to keep them around. Hard to imagine, but someone has to be thinking about that problem.