Snap posted a 19% increase in revenue to $1.6 billion for the June quarter, as the social media platform reported growing momentum in its advertising business.
The platform says almost one billion people are using its services each month. Monthly active users grew to 971 million, and daily active users hit 493 million.
The company said advertisers are seeing more value on Snapchat and increasing their investment as the platform improves across the full funnel.
“After several quarters of improving our ad products and go-to-market approach, we saw better momentum with large advertisers in North America and stronger revenue growth internationally,” said CEO Evan Spiegel.
“World Cup-related spending contributed during the quarter, alongside continued strength among small and medium-sized businesses.
“Smart Campaign Solutions, our suite of AI-powered automation and optimization tools, is making it easier for advertisers to achieve better outcomes with less manual work.
“Those outcomes continue to improve. For app advertisers, cost per install declined 8% year-over-year, cost per purchase declined 18%, and app purchase volume increased 128%.
“Greater adoption by retailers also drove 43% growth in Dynamic Product Ads revenue. “Advertisers increased spending across native surfaces such as Sponsored Snaps, where roughly one-third of the Snapchatters reached were incremental to other surfaces on Snapchat.”
Emarketer analyst Max Willens said Snap is beginning to reap some things it's spent years planting.
“The focus it put into rebuilding its ad platform has brought not just a strong number of SMB advertisers, but it's also renewed the confidence of large US advertisers, who have held it at arm's length for some time,” Willens said.
“Its consumer revenue programs, collectively up 85% YoY, look like they will become stable planks of the business."
"We're all going to have to wait another few quarters to see whether Snap's bet on Specs pay off. But for this quarter, Snap should feel positive about the growth they've driven."
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.