Snapchat’s Revenue by Segment

This statistic highlights Snapchat’s Revenue by Segment, reported on a quarterly basis from Q1 2016 onwards.

Snapchat is a mobile camera and messaging application. Snapchat gives people a chance to share moments from their life and simultaneously making them look good. The app let’s people share pictures or messages that disappear after being viewed. It is advertised as a new type of camera. The app is widely popular amongst the teens. As of the first quarter of 2020 Snapchat has about 229 million active users. The number of users grew by almost 20% since the last year.

Snapchat made about $1.7 billion in revenue in 2019. The bulk of Snapchat’s revenue comes from advertising. They do this by showing ads between your friend’s stories. The appeal of these types of ads is that the users are more actively looking at the screen and the ad captures 100% of the screen. Snapchat added some fun augmented reality filters to their application. Snapchat charges a fee per day and also offers on-demand filters that start at $5 depending on the duration and audience size.

The barnded lenses also play a sound to increase customer engagement. The discovery section on Snapchat allows publishers to post their content and attracts viewers to read them. The discovery section is a great place for advertisers since snapchat users can now subscribe to different brands and will be notified when the brand posts new content. This content is also sharable on the application. Geofilter Is any other way to advertise a brand. Geofilters are filters that are pertained to a certain geographic location. Snapchat allows anyone to purchase a geofilter directly from their website. Recently Snapchat has partnered with various sporting events. Snapchat had also been selling spectacles for a while, but the hype soon faded away. Advertising revenue contributes to almost 98-99% of its revenue; other revenue is almost a negligible amount. Only 2017 saw a small increase of about 3-4% in other revenue.

In the first quarter of 2016 Snapchat generated only $38.7 million in advertising revenue and only $98,000 in other revenue. As the app gained popularity revenue started to rise proportionally. By the last quarter of 2016 Snapchat’s advertising revenue had grown to about $161.2 million and other revenue to $4.48 million. Snpchats’s revenue continued to increase into 2017, but then saw a small decline through 2018. Snapchats’s advertising revenue continues to rise while other revenue has been seeing a downward trend. As of 2019 Snapchat’s advertising revenue was around $1.67 which was a good sign after a relatively under performed 2018.

Snapchat has been constantly trying to update on ways it can increase advertising revenue and customer engagement. Snapchat has a lot of potential for direct business to customer contact and hopefully they are able to make use of such opportunities.

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