Top Story

Home >> Digital >> Article Presented By, IDMA - Mathrubhumi.com presents e4m's IDMA 2018, gold partner - Republic TV           Techमंच - exchange4media presents Techमंच - Digital Conference 2018, gold partner - Mathrubhumi.com

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.

Tags Snapchat ad revenues eMarketer

Varun Raina, Marketing Manager, Airbnb India speaks to exchange4media about the successful #LiveThere campaign and how Bollywood helps them connect with its young consumer

Tim Castree is all praises for his team in India and trusts it to be a result of “an excellent execution of agency’s global strategy” headed by Kartik Sharma

Siddharth Dabhade says Criteo’s technology allows brands to engage with shoppers, create relevant experience on retail apps, thereby driving sales and profits

Shantanu Gangane says OTT platform Viu plans around 20+ originals and is all set to enter the Tamil market with a mix of syndicated and original content

right
left
OFF THE CUFF HAS JOURNALIST ARUN SHOURIE IN CONVERSATION WITH SHEKHAR GUPTA IN MUMBAI IAA HOSTS FIRST INDIAA REGIONAL AWARDS (TELUGU) IN HYDERABAD BREAK THE CEILING TOUCH THE SKY 2018 SEES OVERWHELMING INDUSTRY PARTICIPATION 10TH EDITION OF ABC EUREKA AWARDS IN MUMBAI CELEBRATES WORK OF PARTNER AGENCIES EMINENT JURY PICKS LOUDEST’S 100 MOST POWERFUL INDIAN MUSIC BUSINESS LEADERS MODE LOFT BY SABGROUP LAUNCHES SIGNATURE MENSWEAR POWER DRESSING CLOTHING LINE TOP MARKETERS DISCUSS ART AND SCIENCE OF EFFECTIVE LISTENING @PITCH CMO SUMMIT 2018, DELHI THIRD SEASON OF ‘INDIA’S TOP DIGITAL PLANNERS’ RECOGNIZES EXCELLENCE IN THE DIGITAL INDUSTRY WOMEN ECONOMIC FORUM 2018 SEES DISTINGUISHED GLOBAL PERSONALITIES IN ATTENDANCE PEPPER CREATIVE AWARDS 2018 RECOGNIZE THE BEST IN ADVERTISING IN SOUTH INDIA RADIO CITY’S POWER OF RADIO MEET HOSTS TOP ADVERTISING INDUSTRY LEADERS TOP INDUSTRY PERSONALITIES ATTEND ZOOM-MYNTRA EVENING TO CELEBRATE THEIR PARTNERSHIP LEADING MARKETERS, EXPERTS SHARE INSIGHTS ON DIGITAL TRANSFORMATION @ADOBE SYMPOSIUM IN MUMBAI NICKELODEON TRADE PARTY SEES MARKETING INDUSTRY LEADERS AND THEIR FAMILIES IN ATTENDANCE GOLDEN MIKES RADIO ADVERTISING AWARDS 2018 RECOGNIZE INDUSTRY’S MOST DESERVING ACHIEVERS AIMA MANAGING INDIA AWARDS HONOUR THE BEST IN THE INDUSTRY BW BUSINESSWORLD’S GREAT INDIA DEBATE BRINGS TOGETHER INTELLECTUALS ACROSS INDUSTRY SECTORS BW BUSINESSWORLD SMART CITIES CONCLAVE PATNA 2018 SEES EMINENT INDUSTRY LEADERS IN ATTENDANCE EMINENT JURY PICKS WINNERS OF GOLDEN MIKES RADIO ADVERTISING AWARDS MADDYS 2018 SEE TOP ADVERTISING AND MARKETING INDUSTRY LEADERS IN ATTENDANCE

Abraham Thomas, CEO of Radio City, and L V Krishnan, CEO, TAM Media Research, talk to exchange4media about a recent Nielsen report on radio

The announcement was made by the third judge of the Madras High Court, with an order expected later this evening.

Sanjay Goyal talks to exchange4media about the fast changing norms at companies, the current employment scenario and what would a workplace be like by 2025.