Snapchat’s parent company Snap posted healthy third-quarter earnings today (22 October) of $446m in revenue during the period – $11m higher than Wall Street expected.
The 50% increase in revenue from the previous year’s mark was accompanied by a 13% year-over-year increase of daily active users to 210m.
The influx of users is key to Snapchat’s pitch to advertisers. Jeremi Gorman, chief business officer at Snap, said there is ample supply, so the company’ smain priority is growing demand on the buy-side.
To further monetize the platform, Gorman said Snap will be building out its measurement tools.
“We are ensuring that advertisers can optimize their campaigns for the most impactful business outcomes,” said Gorman. “We are focused on improving advertiser ROI by investing in relevance, optimization, and measurement.”
Snapchat has already introduced a “direct to ticket” measurement product to help entertainment advertisers attribute ticket sales that come through the app.
Total ad impressions for the quarter were up 121% year-over-year, driven mainly by growth in Snap Ads.
Snap chief executive Evan Spiegel said he isn’t concerned if the rapid emergence of TikTok would eat into those impressions, instead saying more social video users, in general, is a win for all players in mobile.
“[TikTok is] an advertising partner for us and I think most importantly the value they provide their community is very different than the value we provide ours,” said Spiegel.
Snap spent over $123m on sales and marketing in Q3. Gorman highlighted the company’s business-to-business marketing efforts as an important vehicle for driving ad growth.
Gorman added that Snap will continue to innovate its ad products, such as its new goal-based bidding and dynamic ad offerings.