Experts have predicted that Snapchat’s popularity over here in the UK will help see its advertising revenue rise so dramatically, it will overtake the revenue of Twitter within the next two years.
Snapchat is now seven years old, and is an app that remains hugely popular in the UK, especially among younger users. Many of its users in the younger demographics now use the app more often than they do the more traditional social sites, such as Facebook. As a result of advertisers picking up on this key demographics social media use, they are now starting to spend larger amounts of their digital advertising budgets on Snapchat so that they can be seen by users in the younger age categories.
In 2016, the company’s UK ad revenue was £21.9m, but according to research from market research firm eMarketer, this is expected to soar to £181.7m by 2019. Furthermore, this will see Snapchat overtake Twitter’s UK revenue, which is forecasted to be around £171m. At present, the UK only represents 10% of Snapchat’s global revenue for advertising.
It is also predicted that by the year 2020, Snapchat will be making more than £310m in advertising and this would see it generating more than the whole ad spend for both print and digital in the consumer magazine section, and would make it more than 50% larger than the UK’s cinema advertising sector, which is around £200m.
The UK senior analyst of eMarketer, Bill Fisher, explained that the app continues to draw in users and, as a result, advertising revenue. He also highlighted that it will almost be doubling its revenues this year alone.
It has been a tricky start to the year for Snapchat though, after its app redesign went down like a lead balloon amongst users after its introduction in January* and $1.3bn (£929m) was wiped from its market value after Kylie Jenner, one of the company’s biggest celebrity users, distanced herself from the app in a tweet in February**.
There’s no denying that the growth rate of Snapchat is pretty impressive, but the company is still pretty small in comparison to some of its social media rivals such as Facebook and nemesis Instagram, which is owned by Facebook. Both of these platforms are expected to hold a higher market share than Snapchat come 2020 despite the photo-messaging app overtaking Twitter in the process.