Kylie Jenner's tweet about Snapchat sees stock value fall by $1.3bn

  • Mar 08, 2018
Kylie Jenner Snapchat Tweet

There was international uproar when Snapchat dropped their new update at the end of February. The update saw a whole new makeover for the app; relocating some of the users favoured settings such as ‘stories’ and giving sponsored, celebrity accounts their own page. The changes left many unsettled and unhappy, with many users taking to other social media platforms to speak out about their dislike for it. A petition was even formed on change.org.uk to ‘Remove the Snapchat Update’ with currently almost 1,250,000 signatures and counting.

One of the most noticeably unhappy figures was the highly influential, Kylie Jenner, who tweeted the following to her 24.7million followers:

Following this tweet Snapchat’s stock value fell by $1.3 billion. But, was it really because of Kylie Jenner?

Realistically, no. The app’s stocks had already been downgraded by Wall Street the day before this tweet, from ‘neutral’ to ‘sell,’ which means that stock had already begun to fall beforehand. But there’s no doubt that Kylie’s tweet will have caught the company’s attention due to her follower base, celebrity status and well-built relationship with the app. Which leads us to think about just how much celebrities and social media can influence the business world.

Social media has made marketing a whole new ball game. It’s a useful tool for consumers to learn, share and add information about brands and products; which means competition is rife. Active users can now read online reviews and have access to much more knowledge and opinion prior to buying. Using celebrities in PR and advertising isn’t a new concept, but with the increasing influence and use of social media, the effect of this has changed. The likes of Twitter and Instagram now allow celebrities to openly communicate with the public; it allows them to express their ‘personal’ opinions, give insights into their day-to-day lives and have more control over how much of their personal life the world can see. This then creates a more in-depth relationship between public and celebrity, closing the gap for fans but widening opportunity for a whole new aspect of advertising. Despite it not being the case with Snapchat, keeping celebrities on the right side of a business can now have a direct impact on sales.

This concept can be known as The Celebrity Effect; their position stands them as role models and advocates for general ideas about ethics, style and taste, therefore influencing customer choice. If a celebrity tells the world to use a site, buy a product or watch a show there’s a large chance their follower base is going to listen. As Kylie Jenner’s tweet demonstrates celebrity involvement with brands can be subtle, sometimes even unnoticeable, advertising. They grab an audience’s attention and spark interest in a product.

However, as positive as celebrity endorsement can be it can also take a toll on a company. The ever-changing world of social media means that celebrities can be scrutinised as quick as they can be praised; if a company is in association with a celebrity who’s acting against its principles and standards then this could have an impact on public interest, reputation and sales. As idolised as celebrities can be it’s healthy to remember they’re only human and a humane mistake can decrease business success.

The developing world of marketing and media means that there’s no concrete system that works. As Snapchat’s stock value reflects, business success can fluctuate and alter with no one sole reason. If anything, the influence of individuals such as Kylie Jenner and the realisation that 2018 is introducing a speed-light growth in social media use, should all teach companies the importance of the social media touch in generating interest and connecting with consumers. A positive online experience assists in accumulating business success.

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