“Innovation is the ability to see change as an opportunity – not a threat” – Steve Job
Over the past several months, people have been spending more time in their homes due to coronavirus stay-at-home regulations.
This has led to significantly lower activity in some industries (travel, restaurants) while other spaces are experiencing tailwinds.
In 2020, the average time spent by U.S. adults on social media networks is expected to be 82 minutes per day. This is notably higher than previous years – over 9% year-over-year. Clearly, the coronavirus has had an impact.
What Does This Mean?
It’s fairly clear why social media usage is expected to increase – however, it’s important to think of both the short-term and long-term implications.
In a previous edition of Chart of the Week we noted how Facebook-owned platforms boast the most engaged user base.
Facebook and Instagram users visit each respective platform several times per day. Snapchat lands high on the list as well with 46% of users visiting several times per day. Trailing behind are YouTube and Twitter.
Of course, this doesn’t translate directly into valuation in the short run – these platforms are monetized through advertisements which may temporarily soften due to the current environment.
In a post-pandemic world, it will be interesting to see which platforms are able to retain and engage users, which can then be rolled into a better value proposition for advertisers.
Twitter: @_SeanDavid
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
