Snap back: How Snapchat’s ad automation boosted its business in Q4 2017
What marketers should know from Snap’s Q4 2017 earnings report.
The equation is almost too simple: If Snapchat can make it easier for people to use its app, more people will use it. And if more people use it, more brands will want to buy ads on it. And if it’s easier for brands to buy ads on it, more brands will buy ads on it.
Not only is the equation simple; it’s successful. It has worked for Google and for Facebook and now for Snapchat’s parent company.
Over the past year, Snap has made its flagship app easier for people to use, removing bugs in Snapchat’s Android version and reducing its required bandwidth over cellular connections. At the same time, it has made it easier for brands to advertise to those people, rolling out automated ad-buying tools and opening up its vertical video Snap Ad format to all advertisers.
As a result, in the fourth quarter of 2017, Snapchat’s daily audience expanded by 18 percent year over year to 187 million people, and the 8.9 million new users added in the period marked the most since Q3 2016, when Facebook-owned Instagram copied Snapchat’s Stories feature. Coinciding with that reaccelerated audience growth, Snap’s advertising revenue swelled by 74 percent year over year to $281 million.