Snap impressed Wall Street with its fourth-quarter earnings this week, showing that it’s making more money off users while decreasing its costs at the same time.
Quarterly revenue rose to $390 million from $286.7 million the year prior)and average revenue per user rose to $2.09 from $1.53 the previous year. It narrowed its net loss to $191.7 million from $350 million the previous year.
The company also touted that its ads reach 70% of 13- to 34-year-olds in the U.S. every month.
Ad sales intelligence platform MediaRadar tracked ads on Snapchat throughout 2018, breaking down buying patterns, size of ad buys, product categories as well as age and gender trends. Among its key findings:
“The good news is likely to drive even more interest from advertisers,” Todd Krizelman, CEO & co-founder of MediaRadar said in a statement.
In 2018, more than 1,400 brands ran ads on Snapchat, according to MediaRadar.
“Despite some negative headlines, Snapchat saw strong interest from advertisers throughout the year,” said Krizelman.
Snap attributed part of its growth to unskippable ads Snapchat Commercials and Snap Pixel, which it said were both catching on with advertisers. The company’s shift to programmatic is also beginning to stabilize, leading to low CPMs for advertisers, while last year, it wa sleading to cheap prices and hampering its ability to bring in more ad dollars.
Most of Snap’s advertisers, however, ran one-off campaigns during a single quarter, according to MediaRadar. Only 17% of the advertisers spent on the platform for more than two quarters or half of the year. And the most popular quarter among advertisers was the third quarter.
The media industry accounted for 30% of ad spend on Snapchat, followed by tech (13%) and retail (10%), all of whom collectively accounted for more than half of all ad spend on Snapchat, according to MediaRadar.
Comcast, Mars, AT&T, Adidas and P&G were the top spenders on the platform.
Food and beverage brands made up 9% of ad spend on the platform.
Lenses, one of Snapchat’s pioneering ad formats, were popular among both consumers and brands.
More than 70% of users played with or viewed a lens every day on average, according to the company. Plus, the Snapchat community created more than 300,000 lenses through the tool Lens Studio, and those lenses were viewed over 35 billion times.
The format stood out among brands too, with 5% of all companies on Snapchat in 2018 running a sponsored lens, according to MediaRadar.
Microsoft’s annual developer conference and Windows news event, Build, has been officially announced to run from May 6 through May 8 in Seattle, Washington. The company made the announcement well ahead of opening registration and posting its convention agenda, which will happen on February 27 and late February, respectively. While we have no agenda in...