Did you know that Snapchat anticipates 50% annual revenue growth each year for the next few years? According to Wall Street Journal, on Feb. 23, the company had its first “investor day” where it disclosed important statistics, like the one previously mentioned, with shareholders. The data revolves around the “Snapchat Generation,” or Gen Zers between ages 13-24.
The Snapchat Generation by the numbers
Other interesting facts from the report include:
- On average, users open the application 30 times per day.
- It reaches 70% of people ages 13-24.
- 80% of its reach is above 18 years old.
The advertising model
The report also focused on Snapchat’s new in-app advertising model. Currently, their main source of revenue comes from vertical advertisements that play between users’ stories. It also was announced that the company plans to let businesses buy advertisements themselves instead of going through a Snapchat representative. “The more advertisers we have, the more diverse the set of ads that we can show,” said Peter Sellis, Snapchat’s senior director of ad products. “That makes these ads more relevant, and it makes Snapchatters more likely to engage with them.”
The AR filters
Augmented Reality (AR) also has helped increase sales. AR-based Snapchat filters have existed since 2015. But AR applications gained a lot of popularity with the release of Pokémon Go in 2016. Brand-based AR filters are visually attention-grabbing at a low production cost. They have an average engagement time of 75 seconds: four times greater than video content. The report revealed that Snapchat users who have used AR filters to try on products are 2.4 times more likely to convert. The company said that AR-based ad products, such as filters that allow users to try on products virtually, are in the works.
Is Snapchat the next big social platform?
Based on their report, it’s evident that Snapchat is the place to be for targeted advertising to Gen Z. Though the app is immensely influential, it still has a lot of growth potential.