Snapchat’s 2017 ad revenue forecast cut by $30m to $770m

Snapchat’s 2017 ad revenue forecast cut by $30m to $770m

Snapchat’s forecast ad revenue for 2017 has been cut by $30m to $770m on the back of larger than expected revenue sharing with its partners, according to eMarketer.

Even with this small reduction the figures would still represent growth of more than 157% over the past year but is likely to weigh on investors nonetheless with its stock currently trading at $21 having reached as high as $27 per share.

The US digital advertising market is projected to reach $83bn this year with Facebook’s share of this sector increasing to 20% while Google snaffles fully 41% of the lucrative digital pie.

For every winner there is a loser however and Twitter’s US ad revenue is forecast to slump by 4.7% to $1.3bn with a parallel drop in its market share of the digital ad market from 1.9 to 1.6%, exacerbated by a flatlining userbase.

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