Snapchat scrapped plans for a simplified version of the app late in 2024, when it was being tested. First intended to make it easier to use by reducing the number of access points on the app to three icons that replace Snap Map and Stories using Chat, Camera, and Spotlight. However, with user feedback mainly from power users, Snap has chosen to revert to an experience closer to the familiar layout. Instead of three tabs, the company is now experimenting with a Snapchat 5-tab interface that retains all original tabs but makes it easier to access Spotlight.
Snap’s new shifting strategy raises questions regarding the understanding of their user base. The new Snapchat 5-tab interface puts forward engaging the users, but that seems to be more haggling resistance from the part of the user than anything. The hardcore users had only some problems with the simplified yet all-embracing Snap Map and Stories conventions, but this does not necessarily mean the former has been more effective for all users. A decision to revert to the Snapchat 5-tab interface may just be a safe way of not disaffecting core users without addressing why they engage at all.
While the Snap revenue report as of Q1 2025 revealed a year-on-year increase in revenue by 14%, mainly attributed to the Snapchat+ subscription and advertisements, one key metric that pains Snap was the loss of 1 million DAUs from the North America region. Such a decline in an extremely important market is alarming. It brings into light that although the revenue is being made, Snapchat is unable to retain its core user base. This may suggest a deeper problem with retention and engagement over the long run, given the level of cut-throat competition from competing platforms like Instagram and TikTok, which are increasingly winning over the younger audience.
Snap CEO Evan Spiegel also indicated something about layering the application that would integrate the AI and AR toward multimodal models. Although these promise much, Snap hasn’t at all shown itself capable of using AI and AR to benefit user experience significantly and attract new users. The fate of Snap in this space will depend entirely on whether these technologies really engage the Snapchat audience or are just another shot in the dark as they fail to address bigger issues regarding user engagement.
Snap backing to the Snapchat 5-tab interface further implies the potential lack of a future-oriented design evolution. The familiar path could provide a temporary ad-hoc solution but does not claim to be a long-term answer for Snapchat’s growth problems. More substantial design changes will need to tackle more generic engageability issues, like why users actually leave or why Snapchat is failing to draw the interest of new users.
Snap’s Q1 2025 financial results also indicate an uptick in My AI’s daily active users, which were up by greater than 55% year-over-year in the U.S. This means AI features are gaining traction mainly in terms of how users chat and interact with Snap content. Nevertheless, whether AI-driven experiences can replace the loss in DAUs in North America is yet to be seen.
To sum it all up, Snap’s revenue growth could be seen as holding some positive connotation, but it begs the question regarding the platform’s sustainability in the long run since it has been unable to stop the decline of its North American users. Although a polished Snapchat 5-tab interface may appease some, it runs the risk of not addressing more serious concerns regarding user retention and app relevance in an increasingly fast-moving social media landscape. Snap’s success will likely depend more on how well it implements AI, AR, and groundbreaking design principles into its existing core offering as opposed to changing a once-again familiar interface from an outdated nostalgic perspective.
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