NEWS7 September 2016

Snapchat ad revenue to approach $1bn in 2017

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US — Snapchat is forecast to generate $367m worldwide in ad revenues this year, with that figure jumping to $935m in 2017, according to eMarketer. 

Snapchat crop

Snapchat posted its first paid-for content in October 2014. This is the first forecast of the social platform’s ad revenues by eMarketer. 

According to the analysis, 95% of Snapchat’s ad revenues currently come from the US, but as it begins to monetise other users in countries where it has a substantial user base, in particular the UK, the non-US share of its ad revenues will grow. By 2018, eMarketer says, a quarter of its ad revenues will come from outside the US.

“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.”