Touted for months, Snapchat claimed the new update this week would be a game changer for them; their big volley to re-create a defensible space vs the Facebook copycatting that has been destroying them in usage, user growth, and the media commentary.
BTW, this is the same day that news breaks that Evan S. received over $600M from the IPO of Snap, making him the third highest payout-from-public-offering CEO ever, Snapchat brand and stock gets murdered by Kylie Jenner.
Here’s the timeline of events:
Snapchat drops the new update
People hate it and launch an online petition that received millions of signatures to change it back.
Kylie Jenner asks the Internet, on Twitter, if anyone still uses Snapchat, because clearly she doesn’t. Says it’s ‘sad.’
Next day, the stock drops 6.4% or a total of $1.3B valuation is taken out of the stock price.
Here’s what really happened:
Kylie Jenner is one of the biggest celebrities using Snapchat.
Kylie Jenner stopped using Snapchat and told the world.
Stock loses $1.3B valuation based on a single sentence tweet.
You just received your masterclass in influencer marketing. And if you missed it, here it is: Kylie Jenner’s tweet was worth -$1.3B to Snapchat.
Kylie Jenner’s (influencer) tweet (content) was worth -$1.3B (ROI) to Snapchat (brand/product).
All the other noise around Snapchat this week had no impact (the petition, the Evan payout, the Olympics coverage with NBC). The stock only dropped after Kylie sent her message. This is influencer marketing.
Consumers own your brand. And if you don’t care and love for them, even off-hand comments can cause critical damage because you’ve ignored them. Additionally, influencers can cause even more collateral damage: After Kylie’s tweet, Maybelline asked their followers if they should even be on Snapchat anymore. Which means that an influencer is now jeopardizing potentially other key retail and brand relationships.
There are more cases like this, but this is an extreme example of how powerful influencers (read: your consumers) are. Ignoring them can be damaging or even fatal.
Kylie Jenner just gave you a case for an influencer marketing budget because if you ignore your consumer’s power on social media, you’ve lost control of your brand. And in Snap’s case, you’ve lost control of your market message and valuation too.
PS. Good news for Twitter — Kylie Jenner is still on board!
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