Snapchat is now reaching over 70% of 13 to 24 year olds in the world’s most lucrative digital ad markets.
The company revealed this information to shareholders on Snapchat’s first-ever investor day on Tuesday, according to a Wall Street Journal report.
Snapchat is where marketers need to be if their goal is to reach an audience of Gen Z consumers with targeted advertising.
The “Snapchat Generation,” as the company refers to it when speaking to shareholders, makes up 40% of global consumers. Roughly 80% of this audience is above the age of 18.
Snapchat shared these stats with shareholders:
- Snapchat users open the app an average of 30 times a day.
- Those who have used AR filters to try on products are 2.4 times more likely to convert.
- The company expects 50% annual growth in revenue every year for the next few years.
New Snapchat Ad Products On The Way
Snapchat says it will meet its projections for 50% year-over-year revenue growth by building new ad products.
Currently, Snapchat’s revenue is driven primarily by vertical video ads that play between users’ stories.
Rather than making those ads more prevalent, Snapchat is exploring ways to insert ads in other high traffic sections of the app.
Snapchat will soon let businesses run ads in the Snap Map and the new Spotlight video platform.
Jeremi Gorman, Snap Inc’s chief business officer, says there are currently over 35 million businesses on the Snap Map. Those are all potential ad customers when the new advertising option rolls out.
The company believes it’s strongly positioned to benefit from augmented reality trends over the coming years. More AR-based ad products, such as branded filters that allow users to virtually try on products, are said to be in the works.
With the United States being the most lucrative digital ad market in the world, Snapchat sees the most growth potential in creating new ad products to sell to US advertisers.
And there’s plenty of opportunity to Snapchat to establish a stronger foothold in the US digital ad market. The company tells shareholders it only takes a single-digit percentage of digital ad revenue in North America despite reaching nearly half of all smartphone users in the region.
Another way Snapchat plans to grow its revenue over the coming years is by letting more businesses buy ads themselves. The company is investing in better self-serve ad tools for small businesses.
This will allow businesses to buy ads as they please instead of going through a Snapchat representative.
Source: The Wall Street Journal