Snapchat could be generating around £105 million ($135 million) in UK revenues in 2018, according to a new estimate by research firm eMarketer. The figure would present almost double the revenue compared to 2017.
Back in 2015, the social media app maker generated 95.9% of its advertising revenue through the US. However, in 2018, this percentage has dropped to 75.8% thanks to Snap Inc.’s efforts on driving an international expansion. Thus, the UK could account for 10% of Snap’s global revenue this year.
Although the company is experiencing fast-paced growth in users and subsequently ad revenues, these are making up less than 1% of UK digital ad spend in 2018.
Meanwhile, competitor Facebook is snapping up a fifth of UK ad spend.
However, eMarketer admits that the comparison is a little unfair.
Using Instagram as its main competitor, here, Snapchat also falls flat as Instagram is predicted to snap up 5% of all digital ad spend.
Unsurprisingly, Google and Facebook are dominating the UK digital market this year to take 60% of all UK digital ad revenues.
“Snapchat continues to pull in users and, by extension, ad revenues,” explained Bill Fisher, eMarketer’s UK senior analyst. “An almost doubling of revenues in 2018 is a great result. But while the user base continues to be dominated by younger age groups, that revenue potential will remain somewhat restricted. And with the financial muscle of Facebook behind close-competitor Instagram, Snap’s going to have to work ever harder for those ad dollars.”