Snapchat Usage and Advertising 2017: Separating Fact from Fiction - eMarketer
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Snapchat Usage and Advertising 2017: Separating Fact from Fiction

eMarketer Report

By: eMarketer

Published: September 27, 2017

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

Executive Summary

Snapchat will have $774.1 million in worldwide ad revenues this year, but it is growing more slowly than eMarketer predicted a year ago. Although many advertisers remain on the sidelines, Snapchat’s ad products are tantalizing for some because of its creative capabilities; its highly engaged user base (which isn’t as young as some might think); and the role that some have given it, as the non-Facebook.

  • Snapchat has been slow to add users in international markets, and while eMarketer has raised its US forecast to 79.2 million monthly active users (MAUs) this year to bring it in line with company-reported data, growth will slow in the US in succeeding years.
  • There will be more US teens on Snapchat this year than on Facebook or Instagram. There are also more adults on Snapchat than some might think.
  • eMarketer estimates US adult users will spend 26 minutes per day on Snapchat in 2017, slightly above the 25 minutes spent on Instagram.
  • The threat from Instagram over Stories is real, but it’s too soon to declare a victor. There’s more to Snapchat than Stories.
  • Snapchat has made several ad product advances in the past year, notably the launch of a self-serve ad buying system as well as targeting and creative tools for direct-response advertisers. It now has 15 measurement partners.
  • Despite these advances, many advertisers remain skeptical. eMarketer has lowered its worldwide Snapchat ad revenue estimate for 2017 to $774 million. The US will continue to account for a strong majority of ad revenues—83% this year.
  • With user growth rates slowing and ad revenues also lower than expected, Snapchat is in a challenging place. It must continue to work hard to convince marketers that it is an effective ad platform despite these negatives.

"Snapchat’s worldwide ad revenues will grow 128% this year to reach $774 million, but that’s a lower figure than our previous forecasts."

Table of Contents

Users and Demographics

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Consumer Attitudes and Activities

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Key Ad Product and Measurement Developments

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Advertiser Usage and Revenue Outlook

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What’s Next for Ads on Snapchat?

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34 charts are included in the full report:

Snapchat Usage and Advertising 2017: Separating Fact from Fiction

Snapchat Ad Revenues Worldwide, 2016-2019 (millions and % change)

Users and Demographics

Instagram vs. Snapchat App Downloads Worldwide, Jan-May 2016 & Jan-May 2017 (millions and % change)

US Usage Is Healthy This Year, but Slower Growth Lies Ahead

US Facebook, Instagram and Snapchat* Users, 2016-2021 (millions, % change and % of social network users)

Developed Markets Are Key for Snapchat

Snapchat Daily Active Users, by Region, Q2 2016-Q2 2017 (millions and % change)

UK Social Network User Penetration, by Platform, 2017 (% of population)

Social Media Platforms Used by Internet Users in France, Feb 2017 (% of respondents)

Social Media Platforms Used by Consumers in Australia, March 2017 (% of respondents)

Snapchat Has More US Teen and Young Adult Users than Facebook or Instagram

US Child/Young Adult Facebook, Instagram and Snapchat* Users, by Age, 2017 (millions)

Digital/Social Platforms Used by US Teen and Young Adult Internet Users, March 2017 (% of respondents)

There Are More Adults on Snapchat than You Think

US Instagram vs. Snapchat Users, by Age, 2016-2021 (millions)

Frequency and Time Spent Are High

Frequency with Which US Social Media Users Check Their Social Media Accounts, by Platform, May 2017 (% of respondents)

Frequency with Which US Snapchat Users Use Snapchat, by Age, Feb 2017 (% of respondents)

US Daily Active Social Media User Share, by Platform, Nov 2014-Nov 2016 (% of monthly active users)

Average Time Spent per Day with Facebook, Instagram and Snapchat by US Adult Users of Each Platform, 2014-2019 (minutes)

Monthly Time Spent on Instagram vs. Snapchat Among US Mobile App Users, Jan-June 2017 (hrs:mins)

Consumer Attitudes and Activities

Leading Reasons that US Social Media Users Continue to Use Social Media, by Platform, April 2017 (% of respondents)

Snapchat Features that US Internet Users Like Best, Aug 2017 (% of respondents)

Users Post Often

Frequency with Which US Social Media Users Add Content* to Their Social Media Accounts, by Platform, May 2017 (% of respondents)

Discover May Not Be the Most Important Part of Snapchat, but It’s Growing

Frequency with Which US Snapchat Users Conduct Select Activities on Snapchat, March 2017 (% of respondents)

Reasons that US Snapchat Users Use Snapchat, by Gender, May 2017 (% of respondents in each group)

The Stories Battle Isn’t Over Yet

Frequency with Which US Instagram Users View Instagram Stories, Nov 2016 & May 2017 (% of respondents)

Advertiser Usage and Revenue Outlook

Percent of Digital Ad Budget Allocated to Select Social Media Platforms According to US Ad/Marketing Professionals, Feb 2017 (% of respondents)

Social Networks on Which US Marketers Are Currently Spending, June 2017 (% of respondents)

Social Networks on Which US Marketers Are Spending Their Budgets, by Amount, June 2017 (% of respondents)

US Ad/Marketing Professionals Who Have Spent/Plan to Spend Advertising Dollars on Instagram, Feb 2016-Feb 2017 (% of respondents)

eMarketer Has Lowered Its Revenue Outlook

Snapchat Ad Revenues Worldwide, 2016-2019 (millions and % change)

US Forecast Also Lowered

US Snapchat Ad Revenues, 2016-2019 (millions and % change)

Net US Digital Ad Revenues, by Company, 2016-2019 (billions, % change and % of total)

International Ad Growth Is Slow

Snapchat Ad Revenues Worldwide, US vs. Non-US, 2016-2019 (millions and % of total)

Snapchat Advertising Revenues in the US vs. Rest of the World, H1 2016 & H1 2017 (millions and % of total)

Instagram Ad Revenues, US vs. Non-US, 2016-2019 (billions and % of total)

What’s Next for Ads on Snapchat?

Importance of Select Digital Ad Platforms in Terms of ROI According to US Ad/Marketing Professionals, Feb 2017 (scale of 1-8*)

Successful Ads Take Advantage of Snapchat’s Unique Communications Environment

Frequency with Which US Snapchat Users Skip Ads on Snapchat, by Gender, May 2017 (% of respondents)

Frequency with Which US Snapchat Users Engage with Snapchat Ads, by Format, March 2017 (% of respondents)