Snapchat Advertising: A Roadmap for US Brand Marketers and Digital Agency Executives - eMarketer
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Snapchat Advertising: A Roadmap for US Brand Marketers and Digital Agency Executives

eMarketer Report

By: eMarketer

Published: August 18, 2016

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

In its first five years, Snapchat has attracted millions of users and several big brand advertisers, but also criticism of its initial ad offerings, which only debuted last year. The company’s actions over the past several months have largely changed those opinions, and ad dollars are starting to rush in.

  • eMarketer estimates the number of US Snapchat users will increase by double-digit percentages this year and next as the app’s popularity spreads beyond millennials and teens.
  • Over the past year, Snapchat has expanded its advertising portfolio to include a wider array of video ads. In June 2016, the company renamed its video ad suite Snap Ads, which now includes four interactive vertical video ad units. The app also offers brands the opportunity to sponsor geofilters and lenses.
  • Snapchat has demonstrated a commitment to improving its targeting capabilities and measurement methods. The number of targeting parameters has been expanded, and the company has partnered with 11 measurement firms to address advertisers’ concerns.
  • While not all of their major concerns have been addressed, many advertisers plan to increase spending on Snapchat later this year and into 2017, likely at the expense of traditional media and legacy social platforms.
  • eMarketer estimates that US advertisers will spend $348.4 million on Snapchat advertising in 2016 and $804.5 million next year, a year-over-year increase of nearly 131%.

"eMarketer estimates that 58.6 million people in the US will use Snapchat at least once per month in 2016, representing 31.6% of US social network users, 28.3% of US smartphone users and 18.1% of the US population."

Table of Contents

Understanding Snapchat

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Audience Size, Composition and Engagement

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Ad Types

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Usage and Effectiveness

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Related eMarketer Content

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19 charts are included in the full report:

Snapchat Advertising: A Roadmap for US Brand Marketers and Digital Agency Executives

US Snapchat Users and Penetration, 2014-2020 (millions, % change and % of social network users)

Understanding Snapchat

Snapchat App Key Developments Timeline, 2011-2016

Audience Size, Composition and Engagement

US Snapchat Users and Penetration, 2014-2020

Snapchat Will Remain Mostly Millennial, But More ‘Olds’ Will Start Using It

US Millennial Snapchat Users and Penetration, 2014-2020 (millions, % change and % of millennial smartphone users)

US Gen X Snapchat Users and Penetration, 2014-2020 (millions, % change and % of Gen X smartphone users)

US Baby Boomer Snapchat Users and Penetration, 2014-2020 (millions, % change and % of baby boomer smartphone users)

US Snapchat User Penetration, by Age, 2014-2020 (% of smartphone users in each group)

US Snapchat User Share, by Age, 2014-2020 (% of total)

US Snapchat Users, by Age, 2014-2020

A Snap-Happy Bunch

Frequency with Which US College Student Internet Users Use Select Social Media Sites/Apps, March 2016 (% of respondents)

How Does Snapchat Stack Up Against Its Rivals?

US Mobile Phone Messaging App Users and Penetration, by Platform, 2014-2020 (millions, % change and % of population)

US Social Network Users and Penetration, by Platform, 2014-2020 (millions, % change and % of population)

Top 15 Smartphone Apps Among US Smartphone App Users, May 2016 (% reach)

Usage and Effectiveness

Social Networks on Which Social Media Marketers Worldwide Advertise Monthly, March 2016 (% of respondents)

Showing Marked Improvement

Social Ad Effectiveness for Driving ROI According to US Brand and Agency Executives, by Platform, Sep 2015 (scoring based on A+ through F scale)

Marketers Aren’t on a Snapstreak Yet

Social Media Platforms that Produce the Best ROI According to Social Media Marketers Worldwide, March 2016 (% of respondents)

Importance of Select Social Network Ad Metrics According US Senior Ad Buyers, by Site/App, Dec 2015 (scale of 1-10*)

A Snapstreak in the Making?

Social Media Sites on Which US Senior Ad Buyers Plan to Begin Advertising in 2016 (% of respondents)

US Snapchat Ad Revenues, 2015-2018 (millions and % change)