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Snap can't win with just a millennial audience, analyst says

Snapchat CEO Evan Spiegel
Getty Images
Snapchat CEO Evan Spiegel

With Snap poised to start selling shares at $14 to $16 any day now, it's become one of this year's most buzzed about tech IPOs.

However, tech industry experts say there are still questions about Snap's business that need to be answered before it becomes a dominant platform.

Snap's biggest appeal to advertisers is that it has a large portion of the 18- to 34-year-old audience. But Pivotal senior analyst Brian Wieser told CNBC on Monday that demographic is not as lucrative of an ad audience as people think. If you add up the ad revenue that the top youth-oriented TV networks like MTV, VH1, Comedy Central and Adult Swim, it's only worth $3 billion tops, Wieser said.

"You need to reach a much broader audience to be able to reach a broader set of potential revenue," Wieser said.

Another issue is whether Snap's "total addressable market," or potential revenue opportunity, should be compared to television or digital, Wieser said. Pivotal is projecting the company will reach $2 billion to $3.5 billion in revenue by 2021.