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Snapchat’s Average Revenue Per User (2016-2020)

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This statistic highlights Snapchat’s Average Revenue Per User starting from the first quarter of 2016. Click here to know more about statistic.
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This statistic highlights Snapchat’s Average Revenue Per User.

Snapchat is a mobile messaging app for both Android and iOS. One of the core concepts of the app is that whatever pictures or messages you send can only be accessed for a short time. It was developed by three students in 2011. Since then the app has only grown in popularity and now there are more than 220 million active users. Snapchat has been constantly updating its app and adding to new features to keep users engaged. Snapchat is most popular in North America. Europe and other countries follow the lead.

Snapchat is also a platform for sharing advertising space and that’s how they earn most of their revenue. Almost 98% of Snapchat’s revenue comes from advertisements and the remaining 2% comes snap spectacles and other sources.

Snapchat’s revenue grew by 45.3% in 2019 as compared to 43.1% in 2018. The revenue for Europe grew the fastest in 2019.

The global average revenue per user (ARPU) first declined in the first quarter of 2019 $2.09 to $1.68. Q2 marked a turnaround and the ARPU grew to $1.91 and then $2.12 and $2.58 in Q3 and Q4 respectively.

The highest ARPU coming comes from the North American region, the U.S alone accounts for about $1 billion of the revenue. This ARPU from the North American region grew from $2.81 in the first quarter of 2019 to $4.42 in the fourth quarter. The increase in revenue can be owed to a 20% growth in the number of users and most of this growth came from the Rest of the World market. Snapchat still focuses mainly on the North American region as the highest revenue per user is still coming from there.

This is an important area of opportunity for Snapchat, and one that’s it’s yet to capitalize on. And while overall growth is solid, it does need to improve its ARPU balance in order to maximize its potential, which will likely require more significant pushes to showcase the application’s promotional value for brands.

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