Kicking Snap while it’s down, CNN just announced plans to shutter its daily Snapchat show “The Update.”
After less than a year, it became clear to CNN that the show wasn’t working. Both Snap and CNN insist the imminent demise of "The Update" doesn’t have broader implications for their relationship.
“Snap and CNN have built a great partnership over the years, and our teams have enormous admiration for each other,” the pair said in a joint statement. Both insisted the relationship would continue. Last month, Snap reported its third consecutive losing quarter. During the period, it racked up revenue of just $208 million -- a net loss of $443 million -- and, worst yet, only 4.5 million new daily active users.
Taking what CEO Evan Spiegel called a real “risk,” Snap redesigned its flagship Snapchat app. The biggest changes included the removal of the app’s Stories page, and a clear line between personal communications and media.
As Spiegel explained, the new division was a reaction to negative trends in the social media space, like the spreading of “fake news” and inauthentic self presentation.
More broadly, marketers seem increasingly wary of Snap.
“From an advertiser’s standpoint, it’s tough to recommend Snapchat right now beyond its obvious cultural relevancy,” Ian Baer, Chief Strategy Officer at full-service marketing agency Rauxa, recently told Digital News Daily.
“When faced with the opportunity to include Snap in brand campaign recommendations, we’re finding it’s smarter and easier to recommend Instagram," he added. "From a targeting and analytics standpoint, as well as overall market trends, Instagram can deliver the same audience in a more stable, predictable way.”