Snapchat Reaches 850M Users, Improves Ad Revenue Performance

Showing impressive growth in users and advertising revenue. Here is a simple breakdown of their recent achievements and what's driving their success.

In its Q2 earning report 2024, Snapchat announced that the continued success of its direct response products and the increase in small and medium-sized business (SMB) users helped more than double the number of active advertisers compared to the previous year.

Revenue and User Growth

Snapchat added 10 million new daily active users (DAUs) in Q2, reaching 432 million. They also hit a new milestone with 850 million monthly active users. The platform earned $1.24 billion during this period, with significant revenue growth coming from markets outside of Europe. Although European users still bring in more money per user, increasing in other regions is boosting overall earnings.

Advertising Success

Snapchat invests heavily in artificial intelligence (AI) tools and augmented reality (AR) effects to engage users and improve ad performance. Despite rising costs for infrastructure and marketing, these investments are paying off. The Snapchat+ subscription service saw an increase in subscribers from 9 million in April to 11 million.

The number of active advertisers on Snapchat more than doubled compared to last year, thanks to the growing popularity of its direct response products among small and medium-sized businesses (SMBs). Improvements in the Conversions API (CAPI) and better collaboration with advertisers led to a 300% increase in CAPI integrations.

Snapchat introduced AR Extensions, allowing advertisers to add AR Lenses and Filters to all ad formats. Brands can also use Generative AI technology to create custom-sponsored AR Lenses. A partnership with Samba TV found that exposure to Snapchat campaigns increased movie ticket sales by 91%.

New Features and Content

Snapchat reported record highs in daily active users sending Snaps and a 25% increase in the global time spent watching content. The new Gen AI Lens "Scribble World" was viewed over a billion times, significantly boosting engagement.

They also launched Lens Studio 5.0, which includes a Gen AI Suite that simplifies the process for creators to make Lens-ready assets using simple prompts without coding skills.

Conclusion

Snapchat's Q2 2024 report highlights its continued users and ad revenue growth. With ongoing investments in AI, AR, and new content, Snapchat is expanding its reach and enhancing its platform, making it a player in the social media industry.