[ad_1]
Snapchat has seen its audience decline since its redesign earlier this year. Credit: Patrick T. Fallon / Bloomberg
Snapchat finally brings more ads, but this could distract users from the platform.
Thursday, the courier and the media application released its third quarter results that showed a decline in daily users, but a slight welcome rise in advertising revenue to $ 298 million, an increase of 43 percent in twelve months. Snapchat also expects a record fourth quarter advertising revenue for the group, amounting to $ 380 million.
The bad news is that the Snapchat user base has refused 186 million, rising from 188 million in the second quarter and 191 million users per day during the first quarter. The decline follows an overhaul of misguided application early in the year, and since then there has been a major overhaul at the highest levels of society. Imran Khan, director of the company's strategy, leaves next month, and his role is replaced by two newcomers – Jeremi Gorman, from advertising sales on Amazon to be a business leader at Snapchat, and Jared Gursud fill as the next leader of the strategy.
"I am extremely proud of our team and what we have accomplished in such a short time," said Evan Spiegel, CEO of Snapchat, in remarks following the release of the quarterly report. "We are excited for the future and we have just seen opportunities for long-term growth."
He worries that the quality of advertising on Snapchat could be damaging to the entire product, according to Rich Greenfield, a media analyst at BTIG Research.
"The quality of Snapchat advertising has become incredibly high when [Snapchat] launched with a Awful direct sales model under programmatic, "Greenfield wrote in a note to investors this week. The problem is that Snapchat's automated self-service advertising platform is open to everyone, which can diminish quality control.
In the quarterly report, Tim Stone, Snapchat's chief financial officer, said the brand's ad impressions grew 278 percent year-over-year.
Greenfield also criticized the redesign that created a separate space for professional media, called Discover. The media section has once been tightly controlled with a few selected partners like Hearst, NBC Universal, Viacom, The New York Times and other big names in publishing. The Discover section is one of the main areas in which Snapchat has to serve ads.
In the last quarter, Snapchat unveiled new media products that generated more partners, and the restructuring has increased the presence of so-called influencers, popular people on Snapchat, who may now appear in the Discover section. .
Greenfield said that led to a clickbait atmosphere with lower-quality posts that are light on the bottom but high on titillating titles.
"It's now become a digital version of an endcap supermarket, with titles such as National Enquirer, where clickbait and racy content rule," Greenfield said.
Nevertheless, Snapchat is investing to improve the content. In the last quarter, the company announced Snapchat's original shows, producing 12 programs that are intended to provide advertisers with a quality environment for their commercials.
"We believe that Snapchat represents the best place for branded mobile advertising, especially for our young, highly engaged public," said Spiegel.
[ad_2]
Source link
