Sure we know Snapchat is popular, especially with Millenials and Gen Z, but the app has quietly started attracting serious ad dollars.
eMarketer pins this year’s ad revenues at Snapchat at $366 million with growth next year to $935m. That’s nothing to sneeze at. 95% of the ad dollars come from the US.
“To engage those often hard-to-reach consumers, Snapchat has expanded its advertising portfolio over the past year to include a wider array of video ads, and more sponsored geofilters and sponsored lenses.” – eMarketer analyst Cathy Boyle
Snapchat was a little late to the ad party, only getting into the ad-supported platform business in 2015. Going up against the likes of Facebook and Twitters, Snapchat currently sits at a 31.6% share of US social media users.
Snapchat currently has 150 million people using its service daily and has been growing rapidly as has recently passed up Twitter in usage, which Bloomberg claims has 140 million daily users.
Is it working for advertisers?
“What it has yet to prove is whether it can consistently deliver a better return on investment for advertisers than other social networks.” – eMarketer analyst Cathy Boyle