Kylie Jenner, the socialite whose family achieved fame after her half-sister, Kim Kardsahian, starred in a ‘leaked’ porn video, has decimated Snap’s value this week with one little tweet.
She tweeted to her 24.5 million followers: “Sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad.”
Her post followed Snap’s redesign towards the end of 2017, which has proved to be unpopular with users – 1.2 million of whom have signed a petition for the messaging app to revert to its previous design.
Following her tweet, Snap share value dropped almost 8%, losing the company $1.3bn (£1bn) on the stock market, although it has since shown some signs of recovery with value now sitting at $17.54 (£12.55) per share.
She followed up with a second tweet adding: “Still love you tho snap… my first love”, but the damage was done.
Josh Krichefski, CEO at MediaCom UK, believes the incidenct highlights the power social media influecers can have.
He said: “With more than 24 million followers, and an army of loyal fans hanging on her every word, this represents both a challenge and opportunity for brands and businesses in today’s reality TV and social media age.”
Despite falling share prices, Krichefski says it would be unwise to write Snap off just yet.
“They now have a strong ad offering with a wide range of formats, measurement partners and a solid user base,” he explained. “But there are other causes of concern. The switch to an auction-based media buying system last year has been great for advertisers and has allowed media agencies to optimise to lower costs to reach audiences, but that won’t have helped grow Snap’s revenue.
“What’s more, the beloved ‘Stories’ format alongside the lenses and filters which had been Snap’s breakthrough USP ad product is now no longer unique to them; Instagram took on this model and made it easier for family and friends to do this on their existing social platform with their established friends or family base. What will be interesting is how long it will take Snap’s share prices to return to normal in this tinder box industry.”