Snapchat Ad Revenue (2021–2025)
The number of people using Snapchat worldwide has been increasing over the past few years. In 2022, its daily active users (DAU) hit 375 million, marking a 17.6% increase from the previous year and according to its most recent report, as of Q3 2023, this number has risen to 406 million.
What does Snapchat’s user growth mean for the company’s ad revenues? As it stands, rival social networks such as Pinterest, Instagram, and TikTok, all of which are also experiencing a rise in users, are expected to grow their ad revenues.
Here’s a look at Snapchat’s ad revenues from 2021 to 2025 to help you understand how one of the world’s most popular social media platforms is performing.
Snapchat ad revenue: 2021–2024
According to a recent report, Snapchat’s ad revenues are forecast at $4.2 billion in 2024. This covers all paid forms of advertising on the platform, including those appearing on desktops, laptops, smartphones, and tablets. This is the first time Snapchat’s ad revenues are expected to exceed the $4 billion milestone.
Snapchat’s ad revenues in 2024 are a 10.4% annual increase from 2023’s figures and an acceleration from the previous year’s growth rate. In 2023, Snapchat’s ad revenues grew by a marginal 0.7%. In comparison, revenues surged by 57.3% in 2021, to $3.39 billion, before another 11.2% increase in 2022 brought total revenues to $3.77 billion.
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Despite the projected double-digit increase this year, Snapchat’s ad revenue growth still lags behind that of other social media platforms. TikTok’s ad revenues are expected to rise by 30.7% in 2024, while Instagram’s and Pinterest’s ad revenues are forecast to grow by 17.9% and 14.1%, respectively.
Analysts attribute Snapchat’s struggles over the past few years to the fallout it experienced involving privacy concerns and the trouble it’s been having with monetizing its product. In fact, in Q1 2023, the company saw its quarterly revenues fall for the first time since it went public six years ago.
Snapchat ad revenue forecast: 2025
The forecast for Snapchat’s ad revenues for the following year shows that a slightly slower annual growth rate of 9.5% is expected in 2025, to take Snapchat’s ad revenues to $4.59 billion.
From 2021 to 2025, Snapchat’s ad revenues are forecast to rise by $1.2 billion. This represents an overall increase of 35.4% and an average annual growth rate of 8%.