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.
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: 2021–2023
According to a recent report, Snapchat’s ad revenues are forecast at $3.8 billion in 2023. This covers all paid forms of advertising on the platform, including those appearing on desktops, laptops, smartphones, and tablets.
Snapchat’s ad revenues in 2023 are a marginal 0.7% annual increase from 2022’s figures and a massive slowdown from the previous two years’ growth rates. In 2021, Snapchat’s ad revenues surged by 57.3%, to $3.39 billion, before another 11.2% increase in 2022 brought total revenues to $3.77 billion.
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It is also far from the annual ad revenue growths other social media platforms are set to record this year. TikTok’s ad revenues are expected to rise by 33% in 2023, while Instagram’s and Pinterest’s ad revenues are forecast to grow by 16.9% and 15.9%, respectively.
Analysts attribute Snapchat’s recent struggles to the fallout it’s experiencing 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: 2024–2025
The forecast for Snapchat’s ad revenues for the next couple of years looks much brighter. In 2024, experts predict that total revenues will increase by 10.4%, to $4.2 billion—beating the $4 billion milestone for the first time.
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%.