Home >> Digital >> Article

Snapchat ad revenues may shoot up to almost $1 billion by 2017: eMarketer study

14-September-2016
Font Size   16
Snapchat ad revenues may shoot up to almost $1 billion by 2017: eMarketer study

Snapchat is one of the fastest growing social media platforms in the world. During the Olympics alone it recorded 50 million visitors who watched Olympics based content. Snapchat already sees 150 million daily users and these figures are expected to grow with time.

Now, not only is the user base for Snapchat growing but it is expected that the ad revenues for the app could reach almost a billion dollars (935.46 million to be precise) according a report by eMarketer. With a larger user base it is expected that advertisers would flock to an app like this in order to reach a larger audience that has a niche reach.

“Advertisers are attracted to Snapchat for its broad reach among young millennials and those in Generation Z, which are valuable demographic groups for many businesses,” said eMarketer principal analyst Cathy Boyle. “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.”

The “Discover” feature is currently the largest contributor to Snapchat’s ad revenue in the U.S with 43 percent and it only captures 2.3% of social network ad dollars, having launched its ad platform in mid-2015 according to the eMarketer report.

“Snapchat has improved its targeting capabilities and partnered with 11 measurement firms to address the concerns voiced early on,” said Boyle. “What it has yet to prove is whether it can consistently deliver a better return on investment for advertisers than other social networks.”

Even though Snapchat is gaining quick popularity around the globe, it faces stiff competition from Facebook and Twitter. Currently, Snapchat derives 95 percent of its ad revenues from the US and if it focuses on other countries where it holds a decent user base the ad revenues are only expected to grow. eMarketer predicts that by 2018 a quarter of Snapchat’s ad revenues will come from outside the US.

It is also rumoured that Snapchat will go public as early as next year. According to various media reports the company is in talks with various investment bankers and is planning to file an IPO later this year.

Snapchat has reportedly raised more than $2.6 billion from investors ranging from financial services corporation Fidelity Investments and Chinese online marketplace Alibaba to venture capital firms including Kleiner Perkins Caufield & Byers, IVP and Benchmark. The startup is currently valued at $16 billion.

Kartikeya Sharma says that June has been the best month for sales in the 11 years that the brand has been in India

The newly appointed CEO of ZEE5 on how he aims to have the widest appeal in the OTT space amongst Indian consumers

The VP, Marketing and Communications (South Asia), talks about the company's growth strategy, its focus areas, impact of demonetisation on consumer behaviour and much more

Siju Prabhakaran, South Cluster Head, Zee Entertainment Enterprises Limited, talks about channel's rebranding, extending fiction shows to weekends and much more

right
left
RADIO CITY CELEBRATES ITS 17TH ANNIVERSARY WITH CONCERT, AWARDS AND FUN 5TH EDITION OF TIMES NOW & ICICI BANK’S NRI OF THE YEAR AWARDS GLOBAL INDIANS PITCH CMO SUMMIT BENGALURU SEES TOP INDUSTRY LEADERS AND MARKETERS IN ATTENDANCE DISTINGUISHED JURY COMES TOGETHER TO PICK WINNERS FOR PITCH’S TOP 50 BRANDS PITCH CMO SUMMIT BANGALORE SEES TOP CMOS ACROSS INDUSTRIES IN ATTENDANCE 1ST REPUBLIC TV GULF INDIAN LEADERSHIP SUMMIT & AWARDS HONOUR STALWARTS OF INDIAN GULF BUSINESS COMMUNITY SONY YAY! CELEBRATES ITS FIRST BIRTHDAY WITH PARTY FOR TRADE PARTNERS THOUGHT LEADERS AND TOP DIGITAL MARKETERS SPEAK @ EXCHANGE4MEDIA GROUP’S TECHMANCH 2018 IN MUMBAI EXCHANGE4MEDIA’S IDMA 2018 RECOGNIZES INDUSTRY’S BEST DIGITAL MARKETING CAMPAIGNS REALTY PLUS UNVEILS COFFEE TABLE BOOK AT 10TH CONCLAVE & EXCELLENCE AWARDS @AHMEDABAD EMINENT JURY CONGREGATES TO PICK WINNERS OF INDIAN DIGITAL MARKETING AWARDS 2018 OFF THE CUFF SEES ‘SWACHH BHARAT ABHIYAN’ MAN PARAMESWARAN IYER IN CONVERSATION WITH SHEKHAR GUPTA EXCHANGE4MEDIA’S LOUDEST.IN HOSTS INAUGURAL EDITION OF MUSIC INC. IN MUMBAI EMINENT JURY CONGREGATES TO PICK IMPACT’S 40UNDERFORTY ACHIEVERS PORTER PRIZE & INSTITUTE FOR COMPETITIVENESS RECOGNIZE STRATEGIC ACUMEN IN COMPANIES DELHI AD CLUB-SAARC AWARDS 2018 RECOGNIZE EXCELLENCE ACROSS CREATIVE, MEDIA & DIGITAL AGENCIES BSNL & CALL2ACTION COMMUNICATION INDIA LAUNCH MOBILE ADVERTISING PLATFORM, INFOMO IN NEW DELHI CHILDREN’S RIGHTS ACTIVIST KAILASH SATYARTHI LAUNCHES BOOK ‘EVERY CHILD MATTERS’ SENIOR JOURNALIST VIJAY TRIVEDI LAUNCHES BOOK ‘YADA YADA HI YOGI’ BASED ON YOGI ADITYANATH EMINENT JURY CONGREGATES TO PICK IMPACT’S 40UNDERFORTY ACHIEVERS

With this partnership, Eros Now further enhances its distribution to the larger screen in India and then across Asia

The agency strengthens its portfolio winning the accounts of Lactalis Group’s Anik range, Germany’s Baby Sebamed, Wagh Bakri - Mili Tea, and brands from Emami Group

Sachin Jain says India is the third biggest market for the diamond brand, contributing 35% to its global business