Commentary

Awaiting Fourth Quarter Metrics, Snap Presents Uneven Picture

What effect has Snapchat’s big redesign had on ad partners?

We’ll have a pretty good idea when Snap reports fiscal fourth quarter earnings next Tuesday.

Leading up to the big reveal, data emerging here and there has painted a rather murky picture for Snap watchers.

Metrics recently obtained by The Daily Beastsuggest Snap is having trouble scaling big projects like its Maps feature. Adding to to the company’s troubles, CNN recently announced plans to shutter its daily Snapchat show “The Update.”

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Yet a new report from 4C Insights suggests that Snapchat managed to hold advertisers’ attention in the fourth quarter of 2017. From the third quarter of 2017 to the fourth, 4C Insights saw brands boost their Snap spend by 29%.

Not impressed? Well, from the fourth quarter of 2016 to the fourth quarter of 2017, 4C’s advertisers increased their Snap spend by 2,977%.

In large part, the ad platform attributes these increase to Snap’s adoption of self-serve Snap Ads.

To be clear, Snap definitely experienced a revenue decline last year, which it attributed to an increased reliance on programmatic ad sales.

From the third quarter of 2016 to the third quarter of 2017, impressions delivered programmatically on Snapchat increased from zero to 80% of all impressions.

As a result, Snap reported its third consecutive losing quarter in the third quarter of last year. During the quarter, it racked up revenue of just $208 million, which represented a net loss of $443 million.

Will Snap’s fourth quarter bring its fourth consecutive losing quarter?

We’ll just have to wait and see.

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