Smaller platforms like Snapchat, Pinterest, and Reddit are strategically pivoting towards small- to medium-sized businesses (SMBs) to boost ad revenue. After relying heavily on large brand budgets, these platforms are realizing the potential of SMBs as a crucial growth avenue. Recent earnings reports reveal significant contributions from SMBs to total revenue, with Snapchat earning $5.36 billion, Pinterest $3.65 billion, and Reddit $1.3 billion in 2024. The shift towards AI-driven advertising solutions is indicative of their commitment to improving performance and attracting more advertisers from varied segments.
Snapchat's CEO Evan Spiegel highlighted that SMBs were the "largest contributor" to ad spend last year, as the company recorded $5.36 billion in total revenue, though didn't share breakdowns.
Pinterest announced it had generated $3.65 billion in total revenue for the year, while CEO Bill Ready attributed its 19% revenue growth in 2024 to "transforming Pinterest's ad platform into a true lower-funnel performance engine."
Reddit recorded $1.3 billion in total revenue for 2024, and specifically $1.2 billion of that came from ad revenue. According to COO Jen Wong, mid- and lower-funnel revenue accounted for about 60% of Reddit's total ad revenue.
The platforms' investments into a number of AI-powered products and features throughout 2024 are already showing results, as indicated by the revenue growth.
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