• Marketing Land
  • Sections
    • CMO
    • Social
    • SEM
    • SEO
    • Analytics
    • Display
    • Retail
    • MarTech
    • Resources
    • More
    • Home
  • Follow Us
    • Follow
  • Marketing Land
  • CMO
  • Social
  • SEM
  • SEO
  • Analytics
  • Display
  • Retail
  • MarTech
  • Resources
  • More
    • Follow
  • SUBSCRIBE

Marketing Land

Marketing Land
  • CMO
  • Social
  • SEM
  • SEO
  • Analytics
  • Display
  • Retail
  • MarTech
  • Resources
  • More
  • Home
  • Newsletters
  • Home
Social Media Marketing

Snapchat added users, increased revenue in Q4, but ‘still extremely under-monetized,’ says Spiegel

The CEO says Snapchat is focused on attracting more advertisers to the platform.

Taylor Peterson on February 5, 2020 at 3:44 pm
  • More

Snap Inc., the company behind Snapchat, reported a 44% year-over-year increase in revenue for the fourth quarter of 2019, reaching $561 million. Daily active users (DAUs) on Snapchat reached 218 million, up 4% from 210 million in the previous quarter.

Snap fell short of analysts’ revenue expectations of $563 million – a sign the company is still struggling to stand out among rivals like Instagram and now TikTok. 

Steady growth in DAUs. Wth an increase of 17% compared to a year ago, DAUs rose by the biggest rate year-over-year in the fourth quarter of 2019 since the fourth quarter of 2017 when the daily audience grew by 18%. Total daily time spent by watching Snapchat’s Discover tab increased by 35% year-over-year in Q4 2019.

Slowing ARPU growth. The average revenue per user (ARPU) rose 23% to $2.58 year-over-year, but growth is slowing compared to the 33% growth from the previous quarter.

Story and Commercial ad highlights. While Snap doesn’t provide a breakdown of ad revenues, the company did indicate that revenue from its Commercials ad unit more than tripled year-over-year, and Story Ads doubled in the fourth quarter of 2019.

Why we care. Snap CEO Evan Spiegel reiterated this quarter that he sees Snapchat as “still extremely under-monetized” and believes there is a “significant opportunity” to scale revenue success across more advertisers. The company is focused on growing its total number of advertisers on the platform and diversifying its brand partners, said Snap’s chief business officer Jeremi Gorman.

In addition to investing in more camera/Lens tools and Discover page content, Snapchat said it’s focused on strengthening its ad offering with AR-driven features, more brand partnerships, and innovative new tools to help serve its “large and engaged community.”

While television and desktop budgets make up the majority ad spend in the U.S., Spiegel says advertisers are “increasingly unable to reach [Snapchat’s] unique demographic on those platforms.” If Snapchat’s “unique demographic” is the primary selling point for advertisers, it will face stiff competition from rival digital platforms that are also reaching younger audiences.


Opinions expressed in this article are those of the guest author and not necessarily Marketing Land. Staff authors are listed here.



About The Author

Taylor Peterson
Taylor Peterson was Third Door Media’s Deputy Editor, managing industry-leading coverage that informs and inspires marketers. Based in New York, Taylor brings marketing expertise grounded in creative production and agency advertising for global brands. Taylor's editorial focus blends digital marketing and creative strategy with topics like campaign management, emerging formats, and display advertising.

Related Topics

Channel: Social Media MarketingSnapchatSocial Media MarketingSocial Media Marketing: AdvertisingStatistics: Social Media

We're listening.

Have something to say about this article? Share it with us on Facebook, Twitter or our LinkedIn Group.

Get the daily newsletter digital marketers rely on.
See terms.

ATTEND OUR EVENTS

MarTech 2021: March 16-17

MarTech 2021: Sept. 14-15

MarTech 2020: Watch On-Demand

×

Attend MarTech - Click Here


Learn More About Our MarTech Events

February 23, 2021: SMX Report

April 13, 2021: SMX Create

May 18-19, 2021: SMX London

June 8-9, 2021: SMX Paris

June 15-16, 2021: SMX Advanced

August 17, 2021: SMX Convert

November 9-10, 2021: SMX Next

October 2021: SMX Advanced Europe

December17, 2021: SMX Code

Available On-Demand: SMX

×


Learn More About Our SMX Events

White Papers

  • The State of Local Marketing Report 2020-2021
  • Quality CRM Data: The Key to Delivering Great Customer Experiences
  • How the Microsoft Search Network Can Maximize Your Search Campaigns
  • The Marketer’s Playbook for Customer Acquisition
  • How To Optimize SEO With UGC
See More Whitepapers

Webinars

  • How to Avoid the Digital Transformation Trap
  • How to Build a Marketing System of Record
  • Meet BIMI: The brand-boosting email security marketers must have for 2021
See More Webinars

Research Reports

  • Local Marketing Solutions for Multi-Location Businesses
  • Enterprise Digital Asset Management Platforms
  • Identity Resolution Platforms
  • Customer Data Platforms
  • B2B Marketing Automation Platforms
  • Call Analytics Platforms
See More Research

h
Receive daily marketing news & analysis.
Marketing Land
Download the Marketing Land app on iTunes Download the Marketing Land App on Google Play

Channels

  • MarTech
  • CMO
  • Social
  • SEM
  • SEO
  • Mobile
  • Analytics
  • Retail
  • Display

Our Events

  • MarTech
  • SMX

Resources

  • White Papers
  • Research
  • Webinars
  • MarTech Conference
  • Search Marketing Expo

About

  • About Us
  • Contact
  • Privacy
  • Marketing Opportunities
  • Staff
  • Connect With Us

Follow Us

  • Facebook
  • Twitter
  • LinkedIn
  • Newsletters
  • Instagram
  • RSS
  • Youtube
  • iOS App
  • Google Play

© 2021 Third Door Media, Inc. All rights reserved.

Your privacy means the world to us. We share your personal information only when you give us explicit permission to do so, and confirm we have your permission each time. Learn more by viewing our privacy policy.Ok