Dive Brief:
- Snapchat’s advertising revenue is poised to take off in a big way over the next several years, according to an eMarketer forecast.
- The platform's ad revenue is projected to grow from $59 million in 2015 to $367 million this year, $936 million in 2017, and $1.76 billion in 2018.
- Discover is expected to generate the most U.S. ad revenue for Snapchat this year, but Stories is estimated to eclipse Discover next year.
Dive Insight:
Snapchat is going after advertisers in a big way. After initially developing a reputation for being a difficult platform for brands and marketers to work with, Snapchat has undertaken significant efforts this year to bolster its credibility with advertisers. Snapchat has always held inherent appeal to advertisers due its predominantly Gen Z and millennial users.
While the platform once lacked the kinds of targeting that social advertisers have become accustomed to on other platforms, Snapchat rolled out a highly-anticipated API and an ad partners program this year. And a recent report suggests that Snapchat will soon provide behavioral targeting for advertisers, a company exec told eMarketer, according to Business Insider.
Snapchat has been getting innovative with its ad formats in order to appeal to its youthful user base, such as rolling out sponsored lenses. Those moves are set to pay off for Snapchat, with the company's ad revenue projected to go from a relatively paltry $59 million last year to $1.76 billion in 2018, according to eMarketer.
