A recent survey by Piper Sandler rated TikTok higher than Facebook Inc.'s (NASDAQ:FB) Instagram in the list of “favorite social media apps” among U.S. teenagers. Snap Inc’s (NYSE:SNAP) multimedia messaging platform Snapchat held the top spot.
Piper Sandler’s 40th Semi-Annual Generation Z Survey compiled responses of more than 9,800 U.S. teens with an average age of 15.8 years. The survey covers discretionary spending patterns, technology trends, fashion, along with brand and media preferences.
What Happened: Among the social media platforms, Snapchat led the leaderboard with 34% of teens listing the app as their favorite, followed by ByteDance’s video-sharing platform TikTok with 29% — and about 25% rooting for Instagram.
The usage statistics show that Instagram held the highest engagement rate nevertheless, with 84%, and Snapchat came in second place with an 80% engagement, according to CNBC, which first reported the Piper Sandler data. TikTok’s engagement rate improved from 62% in the spring to 69%.
Why Does It Matter: Despite the recent regulatory setbacks in the U.S., TikTok received an overall positive response in the Fall Survey 2020. Last month, the video-sharing platform agreed to a sale of 20% stake to Oracle Corporation (NYSE:ORCL) and Walmart Inc (NYSE:WMT), in a rush to save its U.S. operations.
In August, Facebook released Instagram Reels, with features like recording and editing multi-clip videos, similar to TikTok. CNBC reported that Facebook would also add shopping features in Reels later this year to test user response.
Price Action: SNAP stock closed 2.94% lower at $26.73 per share on Tuesday. FB shares fell 2.26% to close at $258.66.