Snap back: How Snapchat’s ad automation boosted its business in Q4 2017

The equation is almost too simple: If Snapchat can make it easier for people to use its app, more people will use it. And if more people use it, more brands will want to buy ads on it. And if it’s easier for brands to buy ads on it, more brands will buy ads on it.

Not only is the equation simple; it’s successful. It has worked for Google and for Facebook and now for Snapchat’s parent company.

Over the past year, Snap has made its flagship app easier for people to use, removing bugs in Snapchat’s Android version and reducing its required bandwidth over cellular connections. At the same time, it has made it easier for brands to advertise to those people, rolling out automated ad-buying tools and opening up its vertical video Snap Ad format to all advertisers.

As a result, in the fourth quarter of 2017, Snapchat’s daily audience expanded by 18 percent year over year to 187 million people, and the 8.9 million new users added in the period marked the most since Q3 2016, when Facebook-owned Instagram copied Snapchat’s Stories feature. Coinciding with that reaccelerated audience growth, Snap’s advertising revenue swelled by 74 percent year over year to $281 million.

[Read the full article on MarTech Today.]

About The Author

Tim Peterson
Tim Peterson, Third Door Media's Social Media Reporter, has been covering the digital marketing industry since 2011. He has reported for Advertising Age, Adweek and Direct Marketing News. A born-and-raised Angeleno who graduated from New York University, he currently lives in Los Angeles. He has broken stories on Snapchat's ad plans, Hulu founding CEO Jason Kilar's attempt to take on YouTube and the assemblage of Amazon's ad-tech stack; analyzed YouTube's programming strategy, Facebook's ad-tech ambitions and ad blocking's rise; and documented digital video's biggest annual event VidCon, BuzzFeed's branded video production process and Snapchat Discover's ad load six months after launch. He has also developed tools to monitor brands' early adoption of live-streaming apps, compare Yahoo's and Google's search designs and examine the NFL's YouTube and Facebook video strategies.