After weathering criticism of its initial ad offerings, Snapchat is poised for explosive growth in ad revenues in the coming years, according to eMarketer’s first forecast of ad revenues for the social platform. Worldwide, it will generate $366.69 million in ad revenues this year, with that figure jumping to $935.46 million in 2017.
“Advertisers are attracted to Snapchat for its broad reach among young millennials and those in Generation Z, which are valuable demographic groups for many businesses,” said eMarketer principal analyst Cathy Boyle. “To engage those often hard-to-reach consumers, Snapchat has expanded its advertising portfolio over the past year to include a wider array of video ads, and more sponsored geofilters and sponsored lenses.”
In the US, Snapchat’s Discover feature generates the largest share (43%) of the company’s ad revenues. That balance will shift next year, as Stories overtakes Discover as the dominant ad revenue source, generating 37.8% of the company’s US ad business.