Snapchat has released its latest statistical information reflecting its performance and growth patterns since its conception in 2014. Snapchat’s primary users continue to be young adults between the ages of 18-24. These users are also, unsurprisingly, the primary source of revenue for the company.
This fact could contribute to why the data reveals Snapchat’s continued popularity in North American users but reflects a continual struggle to maintain long-term profitability.
Our Snapchat infographic breaks down the top areas of provided reporting to easily convey various data points, including habits of the average user, geographical usage, revenue rises and falls, and IPO statistics.
Snapchat Infographic for Social Media Marketers
Snapchat surpasses Instagram as U.S. teenagers’ favorite social media platform
As shown in the Snapchat Infographic above, Snapchat has steadily gained traction until it officially became the most popular social media platform in 2016, amongst U.S. teenagers.
Instagram declines slightly but mostly remains a steady favorite, while Facebook and Twitter no longer appear as relevant for the juvenile age groups.
Snapchat continues to gain popularity today but decreased in daily growth rates in 2017
Comparing first quarter to fourth quarter shows substantial growth for two solid years, from 2014-2016, but begins to even out a 13 percent rate of increase in 2017. North America still dominates the percentages, accounting for the bulk at least one-third of users, followed by Europe and the rest of the world.
The Average Snapchat User:
According to research done by Snapchat, the average user is most likely a young adult American with an iPhone. These users primarily snap events they attend, life at home, and happenings at school. Their total usage each day rounds out to about thirty minutes and 18 different snaps. They spend 50 percent more on electronic devices annually than non-Snapchat users, and they account for $1.53 million in quarterly revenue for the company.
Snap highly depends on North American users, who are resistible for > 75% of the company revenue
While North American, which includes Canada, the USA, and Mexico, revenue has declined from nearly 90 percent of income since 2016, these users still make up for over 75 percent of revenue, with Europe reach 14 percent and the rest of the world 9 percent.
Snapchat tanks in early 2017 and is still recovering from the losses
After finally reaching a positive profit margin in the third quarter of 2016, Snapchat immediately began losing profit again in the next quarter, completely tanking in the first quarter of 2017. The losses Snapchat endured will takes months of positive revenue to offset the drop. Unfortunately, they are still in the red, though not as much.
Snap IPO finally sees 2017 fourth quarter increase since launch at the beginning of the year
After seeing a steady decline with the launch of Snapchat’s initial public offering, there was a positive spike in the final quarter of 2017.
Now, how do we put these facts into good use?
Let’s look at how we can generate revenue with Snapchat Ads
Like all social media platforms, Snapchat generates its revenue through ads. But like all these platforms, using Snap ads can generate revenue for your business as well. There are three different ad styles available for your use: snap ads, sponsored lenses, on-demand geo-filters.
Snap Ads are the most common type of advertisement on Snapchat, and this style is the best choice for smaller businesses and budgets. The key to using this ad style is to keep it simple. Snapchat has a strict set of advertising guidelines, and you will have to receive approval on your ad before you publish it. Make sure to read through their guidelines before creating your ad.
Creative visuals and minimal text reflecting one clear and straightforward message are going to produce your best ads. Snap Ads offer multiple ways to integrate content into your ad. You can incorporate vertical videos, cinemagraphs, GIFs, photos, and app install features into your content.
You can purchase these ads on the self-service platform Snapchat offers its users. You can also buy ads through approved sponsors.
Sponsored Lenses are on the opposite end of the spectrum. These ads are the most customized, and therefore expensive, ad choice Snapchat offers. Sponsored Lenses are the augmented reality filters for which Snapchat is famous. These personalized filter ads are most frequently created by large corporations engaging in a promotional campaign, such as Star Wars’ Jedi filter available for the release of The Last Jedi.
Because these ads are custom coded, planning requires significant time and multiple layers of approval before going public. If you want to engage in a Sponsored Lens campaign, give yourself and your marketing team plenty of time to plan accordingly and work with the appropriate Snapchat teams.
On-demand geofilters are the most user-friendly ads to create and launch your brand into the world of Snapchat. These are the location identifiers you see at the bottom of a video which allows you to swipe left or right. Snapchat provides users with the sponsored or on-demand geofilters page to create content for social media marketing campaign. You can also select from a provided template. Just upload or select your content, and make sure it coincides with the given Snapchat geofilters guidelines.
Creating Geofilters is easy. Check out Mellbe’s tutorial on how to create Snapchat Geofilters step-by-step.
You can create marketing campaigns by combining Snapchat ad formats to build awareness using diverse approaches. Multi-style ad campaigns broaden your reach and allow you to reach more users. To develop a multi-ad campaign, however, you will have to work with Snapchat or one of their approved sponsors to ensure you meet all guidelines and content is accepted.
Snapchat continues to be one of the most prominent social media platforms in use today, and it doesn’t appear to be going anywhere any time soon. It provides you the opportunity to boost brand awareness and reach your younger audience. With the various ad options, you are sure to find a format that works for your business and your budget.
Remember, when creating Snapchat ads, creative content is critical.