SmartNews, the news aggregator app, has faced a challenging year in 2023. This began with significant layoffs in January and culminated in a leadership change, with co-founder Kaisei Hamamoto taking over as CEO following the abrupt departure of former CEO Ken Suzuki. The app has been experiencing a decline in both downloads and active users, as indicated by recent figures from app intelligence providers Sensor Tower and Appfigures.
Key Takeaway
SmartNews has faced a decline in downloads and active users amidst a changing news industry landscape and leadership transitions, posing significant challenges for the news aggregator app.
The Rise and Fall of SmartNews
Founded in Japan in 2012, SmartNews expanded to the U.S. in 2014 and broadened its local news coverage to encompass thousands of U.S. cities in early 2020. The app initially gained attention by partnering with publishers, utilizing algorithms to personalize news feeds, and presenting news in a streamlined format. Despite its early success, the app’s numbers have been dwindling over the past year.
Challenges and Decline
The evolving landscape of news distribution, changes in consumer preferences, and alterations in platforms like Google Search and social media have impacted SmartNews’ user engagement and ad sales. Daily downloads have halved since January 2023, with a significant decrease compared to previous years. Estimates suggest a substantial decline in active users, with figures from analytics firms indicating a notable decrease in user engagement.
Factors Contributing to the Decline
Analysis points to lapsed product iterations, unsuccessful feature launches, and a lack of alignment within the company as potential contributors to the decreasing consumer interest in the app. SmartNews’ attempt to introduce a more positive section, SmartTake, did not meet expectations, further highlighting the challenges faced by the platform.
Future Outlook
Despite the setbacks, SmartNews is looking towards potential future enhancements, including the anticipated “Project Atlas.” However, the company’s challenges have also impacted its internal workings and employee satisfaction, as reflected in Glassdoor reviews.
Competition and Evolving Landscape
SmartNews faces stiff competition from a range of social platforms and news aggregator apps, with new entrants positioning themselves as alternative sources for breaking news. The evolving preferences of news consumers and the emergence of new platforms continue to shape the competitive landscape.
Adapting to Changing Expectations
SmartNews acknowledges the need to adapt to changing technological and consumer expectations, hinting at potential future changes in the product. The company remains focused on the “aggregation” of quality information, with a vision to align with evolving user needs.