Snap reported that its annual revenue rose 52% to $679 million during Q3 2020.
It marks the fastest growth by the app developer since 2017 and shows that Snapchat is bouncing back after the initial blow at the beginning of the year due to coronavirus.
At the same time, the company has been busy expanding its advertising options, including the roll-out of video commercial ad units, and these seem to be paying off.
Snapchat said it added 11 million users during the reporting period.
Daily active users were up 18% year-on-year to 249 million. People shared 25% more photos on the app and streamed 50% more videos.
The app now reaches 75% of people aged 13 to 34 years in the UK, US and France.
It’s clear that marketers have taken note and are beginning to view the platform as a good way to reach a highly engaged Gen Z audience.
“Snap’s outperformance is due to its rising stature as a direct response advertising platform and also to its unique ad offerings, such as augmented reality advertising and ads in video Shows,” said Debra Aho Williamson, a principal analyst at eMarketer. “The company has also benefited from an overall increase in ecommerce-related ad spending in digital media.”
Aaron Goldman, Chief Marketing Officer at Mediaocean added:
“Clearly Snap has a lot of momentum and advertisers using Mediaocean to manage Snap Ads increased spend by more than 100% in Q3 compared to the prior year. The combination of engaging brand content and direct response performance has helped Snap become an essential part of omnichannel advertising. With continued integration of AR, commerce, and music, Snap is poised to become even stickier with consumers and brands alike.”