Snapchat's efforts to attract small- to medium-sized businesses (SMBs) are yielding positive results in ad revenue growth. The platform has enhanced its direct response business by improving ad products, partnership data, and automation tools, including an AI-driven Smart budget optimization feature. Analysts note that while Snapchat trails behind larger competitors like Meta and Google, the shift towards prioritizing SMBs offers significant growth potential. CEO Evan Spiegel identified SMBs as pivotal for 2024 revenue growth, indicating a strategic focus on foundational improvements to better meet advertiser needs.
"You can see Snap is [now] applying the playbook that has worked so well for the bigger ad platforms [Meta and Google]."
"SMBs were the 'largest contributor to ad revenue growth in 2024'..."
"They've merged the ads and product team together so the ad team is influencing what products need to be prioritized according to what the market wants and needs..."
"We've improved the targeting and optimization parts of our ad stack, helping SMBs see better results from their advertising efforts."
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