>> Snapchat is already the king of social media for 13 to 24 year olds, but it's going to have to bring in the older crowd if it really wants to dazzle Wall Street and advertisers. Attracting the 35 and older demographic, a group coveted by advertisers because of their spending power, will be key to keeping up the buzz once the biggest US tech IPO since Facebook comes and goes.
Reuters advertising reporter, Tim Basinger.>> The under 35 demographic, especially when it comes to teenagers, are known for being notoriously fickle. And older users, like Facebook has, are seen as a lot more loyal. So just because Snapchat has the market share on teenagers and people in their 20s, it doesn't mean that those same people are gonna be using Snapchat when they're in their 30s and 40s.
>> And building that kind of loyalty is what will keep the ad dollars rolling in, and make SnapChat more than just the latest fad. As of the end of last year, Snapchat boasted 158 million active daily users, and more than $400 million in annual sales compared to Facebook's 1.2 billion users and $27 billion in ad sales.
Advertisers are hoping Snapchat will find a way to grow beyond its core younger audience and expand, unlike Twitter.>> These advertisers need somebody that's not named Facebook or Google to really make a dent in the digital ad marketplace. I mean, those two companies account for about 60% of the entire market share on the digital side and advertisers really just need that third option.
Also because Snapchat's advertising model with the sponsored lenses and the sponsored filters definitely give them a new type of ad unit.>> But getting more older users to sign up isn't Snapchat's only task. It has to get them to stay on longer than the three minutes per day spent at the end of last year.