>> Snapchat may be under siege by it's larger competitor Instagram which has been copying its features introducing photos and videos that disappear after 24 hours in 2016, and aggressively courting millennials. But in the highly coveted age category of under 25, Snapchat looks to be winning the race. Snapchat is expected to add nearly 2 million new users from the age group, while Instagram is expected to add just 1.6 million.
And Instagram's parent company, Facebook is expected to see a nearly 6% drop in users aged 18 to 24 and that's saving Snapchat says, Reuter's David Ingram.>> So advertisers are really looking for where are the eyeballs and where are the really engaged eyeballs who are going to be looking at ads.
And despite the fact that Instagram is so much bigger than Snapchat, advertisers are still drawn to advertise on Snapchat. They're still spending money on Snapchat, because there are a lot more young people on Snapchat. They've retained this advantage that they've had over with millennials, over Instagram.>> That's helped Snap Inc with a 70% plus rise in revenue in the latest quarter, giving the stock a much needed boost and advertisers aren't just coming for the millenials.
>> Snapchat also has this tab called discover where they have a lot of professionally done videos from places like ESPN and The New York Times. And advertisers love being next to that kind of content, because it's so professionally done and it's so predictable. No one's gonna be offended typically by what they see on there, as opposed to stuff that's created by amateurs.
>> Marketers say, Snapchat still has room to improve. There's still no way for businesses to create a fixed profile page the way you can on Instagram, a function that can create a visual store. But as long as it's the champion app of the young, advertisers will feel compelled to poor money into Snapchat.