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Launched in 2011 as an app for disappearing pictures, Snapchat has since grown into a multimedia instant messaging app with over 350 million daily active users and funky AR features.
And like most social media apps, marketers have been capitalizing on Snapchat’s success as an advertising and audience outreach platform. Thanks to Snapchat content’s self-destructive nature, it presents a unique opportunity for brands to create particularly memorable content that resonates with the audience.
In this article, we’ll dive into Snapchat’s financial performance over the last couple of years, its demographics and usage trends, and the relevant industry insights and trends. Let’s get into it.
As of 2022, Snapchat’s annual revenue stood at$4.6 billion – 12% higher than in 2021. However, the company is working at a loss. As of Q1 2023, it made a net loss of $328.67 million, and its total net loss for 2022 was $1.4 billion, according to its recent SEC filing.
What are the main Snapchat revenue sources and trends? We’ll dive into them now.
Snapchat is technically a camera company since its product is the “Snap” camera that allows users to connect with each other by exchanging photos.
Although Snapchat doesn’t provide a detailed breakdown of its revenue segment, around 99% of its revenue comes from displaying adverts on its platform, according to the company data. The rest of the revenue (1%) is earned via the sales of Snap Spectacles – a set of AR glasses for creators to produce interactive experiences with Snapchat – and its subscription service.
The subscription-based paid service Snapchat+ was introduced In 2022 as an additional source of revenue. As of April 2023, the paid subscription service Snapchat+ had over 3 million users. And since its launch, the service contributed $80 million to Snapchat revenue. Since the overall revenue for 2022 is $4.6 billion, the Snapchat+ figures represent 1.73% of it.
Snapchat Advertising Revenue Trends in 2023
The share of Snapchat revenue from advertising has remained consistent in the last three years at 99%. The company says it believes this trend will continue in 2023 and beyond, despite the additional revenue sources like Snapchat+.
Sponsored Content & Partnership Revenue Trends in 2023
Snapchat’s partnerships with developers and AR creators include revenue-sharing. In 2021, Snapchat paid creators $250 million.
Indeed, AR seems to be one of the biggest Snapchat content trends. Its AR creator platform Lens Studio is home to over 300,000 creators that can monetize their creations through Snapchat’s suite of content tools.
Another Snapchat trend is partnerships with publishers. They have over 900 brand and creator partners in over 20 countries for creating stories, including news platforms, entertainment, and sports brands. And the level of engagement for partnered stories is very high – 13 of the partners reached over 50 million people in Q1 of 2023 alone.
As you can see, Snapchat has almost 400 million daily active users as of Q1 2023. Its market penetration rate for North America is 23%, and for Europe, it’s 16%. Over 50% of its global audience is women.
To make the most of Snapchat, marketers need to understand its core audience, their needs, interests, and how often they engage with the app. Let’s take a look at Snapchat use statistics and trends in more detail.
Global & Regional User Growth in 2023
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Snapchat’s February 2023 SEC filing reveals that in the last quarter of 2022, the number of North American daily active users (DAU) grew to 100 million. This represents a YoY growth of 3%.
For Europe, the number of DAU in Q4 2022 was 92 million, representing a 12% YoY growth. As for the rest of the world, Q4 of 2022 had 183 million daily active users, representing a YoY growth of 31%.
India is home to Snapchat’s biggest user base, amounting to 182.35 million users. But the country with Snapchat’s biggest user penetration rate is Bahrain – almost 80%.
Here’s a breakdown of Snapchat’s user base across different countries as of April 2023:
Country
Number of users
India
182.35 million
USA
108.8 million
Pakistan
26.35 million
France
25.9 million
UK
23.15 million
Saudi Arabia
21.75 million
Germany
18.65 million
Changing Demographics & User Behavior on Snapchat in 2023
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In Spring 2022, TikTok overshadowed Snapchat for the first time as a favorite social media app of American teenagers – only 31% of them rated it as their favorite, compared to TikTok’s 33%. UK figures for teenagers and adult Gen Z-ers are higher – 43% of them use Snapchat daily, and 72% use it at least once a week.
For both US and UK, the app is more popular among women than men – about 55% of the app’s users in both countries are women. And in terms of the age breakdown, the biggest age group of Snapchat users in the US (48% of users) is in the 15-25 bracket. In the UK, the overwhelming majority of Snapchat users (77%) are aged 18-24.
When it comes to US adults who use Snapchat for news on a regular basis, the 2022 figure is 15% – a 4% drop from 2020. 67% of those adults are under 30, and women make up 57% of the American Snapchat user base that uses it for the news on a regular basis.
User Engagement & Time Spent on Snapchat
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According to Snapchat, it has 750 million monthly active users. And in 2022, Android users spent 3.12 hours on Snapchat every month. In terms of daily use, 21 minutes was the average timespent on the app per user per day. Compared to other social media platforms like TikTok, Snapchat had one of the lowest monthly and daily usage times.
For example, 49% of UK Gen Z Snapchat users use the app for more than 1 hour each day, compared to 70% that use TikTok for at least an hour on a daily basis. But, as you can see from the infographic, that audience hangs out on Snapchat more than on Tumblr or Instagram.
Industry Insights and Opportunities
Snapchat is taking steps to leverage the latest technology trends like AR and AI. According to a Deloitte study, over 200 million Snapchat daily users engaged with AR on Snapchat every day, andover 70% of them started using it on their first day.
Snapchat’s venture into AR might not be as successful as its advertising segment, but the high adoption of AR, plus Snap’s newly introduced AR shopping for eyewear, might just turn things around.
With the adoption of AI tools, such as Snapchat’s “My AI,” marketers also have an opportunity to capitalize on the data collected from users and the content displayed to them through both ads and influencer or user-generated content.
Indeed, AR and AI advancements unlock a lot of advertising and user-generated content marketing opportunities. Let’s take a look at them now.
As you can see, Snapchat has a very significant global reach. And according to the company, Snapchat users are 34% more likely to buy something advertised on the platform.
To allow marketers to tap into the purchasing power of Snapchat users, the app offers many advertising opportunities, including Snap Ads, sponsored lenses, and geofilters.
Snap Ads
Snap Ads are vertical, full-screen videos that seamlessly integrate into the user experience. They provide a direct and engaging way to reach users and are used by over 57% businesses. The hot sauce company Truff ran a very successful Snap Ads campaign with video ads.
Sponsored Lenses
Sponsored lenses are interactive and often playful AR filters that allow users to transform themselves or their surroundings, creating unforgettable experiences. Advertisers leverage sponsored lenses to infuse their brand into the users’ everyday moments to boost brand awareness. Domino’s and Oreo, among other brands, ran successful sponsored lens campaigns on Snapchat.
With geofilters, advertisers can create customized filters that users can apply to their Snaps based on their location. This allows businesses to engage with their target audience in specific areas, such as events, landmarks, or popular hangout spots like coffee shops. And speaking of coffee shops, Starbucks’ Frappuccino Happy Hour geofilter campaign was very successful.
Influencer and user-generated content (UGC) are gaining enormous popularity on Snapchat, and it’s largely thanks to its Spotlight feature. Spotlight showcases the most entertaining snaps to over 350 monthly users. In Q1 of 2023, Spotlight user-generated content was watched 175% more times than in Q1 of 2022.
When partnering with Snapchat influencers, brands should focus on finding those whose content aligns with their values and target audience.
For example, a health & fitness brand could collaborate with a popular fitness influencer to Spotlight their products in workout routines. That way, brands can amplify their messaging and connect with more people.
And UGC campaigns tap into the creativity of Snapchat’s user base. The potential there is huge, given that 65% of Snapchat users post a story after making a purchase. Brands can encourage their audience to create and share content about their products. For instance, a clothing brand might invite users to share their best #outfitoftheday. This generates buzz and fosters a sense of community and authenticity.
Industry-Specific Examples
Snapchat presents many advertising opportunities and target audiences for brands across different industries. For instance, British fashion shoppers are an excellent target audience for Snapchat advertisers, as almost 30% of them spend 1-3 hours a day on Snapchat.
And that’s something Adidas capitalized on in the course of their Snapchat Sponsored lens campaign, where users could try their iconic sneakers thanks to the AR feature.
Another successful Snapchat campaign called “Cinco de Mayo” was run by the fast food chain Taco Bell. It made the most of the Cinco de Mayo holiday by letting users turn their faces into tacos with AR filters.
Key Takeaways – Snapchat Statistics and Trends
As of 2022, Snapchat’s annual revenue stood at $4.6 billion – 12% higher than in 2021 – with a net loss of $328.67 million.
99% of Snapchat’s revenue comes from displaying adverts on its platform.
Snap has over 900 brand and creator partners in over 20 countries for creating stories, including news platforms, entertainment, and sports brands.
The number of Snapchat’s North American daily active users (DAU) grew to 100 million in Q4 of 2022.
49% of UK Gen Z Snapchat users use the app for more than 1 hour each day.
Can Snapchat Stay Competitive?
The company is operating at a loss and refusing acquisition offers. Furthermore, it has more competition for the attention of its primary target audience than ever, thanks to TikTok.
Nonetheless, Snapchat is still a popular platform for advertisers and consumers alike. But to start turning a profit and grow, it needs to diversify its revenue streams and ensure that more than 1% of its revenue comes from sources other than advertising.
Kate is an accomplished tech writer and SaaS (Software as a Service) founder, renowned for his expertise in the technology industry. She holds a Bachelor of Laws from the esteemed University of Exeter, where she honed his critical thinking and analytical skills.
Beyond her entrepreneurial endeavors, Kate is a true statistics geek. She revels in the world of data and derives insights that drive decision-making and business strategies. This penchant for numbers enhances her ability to craft data-driven articles, guiding readers through complex topics with clarity and reliability.
Kate's passion for knowledge and curiosity about emerging technologies drive her to learn and stay ahead of the curve continuously. She is deeply committed to sharing valuable information about innovations that have a tangible, positive impact on businesses and society.
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