Ad revenues at Snapchat – the internet’s next aspiring ad platform – are growing slower than predicted.
eMarketer predicted in March – around the time of Snapchat’s IPO – that the platform’s US ad revenues would reach $770M this year. However, that forcast has now been lowered to $642.5M, itself a further downgrade since the July 2016 forecast of $805M.
Anecdotally, advertisers may be less sanguine about online advertising in general, and ‘new’ platforms in particular. While Snapchat offers some interesting creative opportunities, and has improved its technical offerings for advertisers, savvy marketers may still be experimenting with the platform, cautious about placing too much investment in unproven media.
Snapchat is still on track to pass beleaguered rival Twitter in US ad revenues next year. eMarketer projects Snapchat will record $1.18B, while Twitter will ‘only’ record $1.16B.
By comparison, Instagram is already ahead of Snapchat in the US, with eMarketer estimating ad revenues exceeding $3B in the US this year.