"These policy developments, combined with potential platform-level age verification, are likely to have negative impacts on user engagement metrics that we cannot currently predict."
"Continued growth in our small- and medium-sized business (SMBs) customers, and improvements in direct response advertising performance"
"This includes testing changes to our infrastructure that will lower costs in regions with less long-term monetization potential, allowing us to better align our resources with the financial opportunity of each geography, but potentially coming at the cost of adverse trade-offs with engagement in these countries."
"So some good signs, with Snapchat looking to refocus its business around its core opportunities, while it's also announced a new deal with Perplexity to integrate Perplexity's AI-powered answer engine directly into Snapcha t."
Policy changes and potential platform-level age verification are expected to reduce user engagement metrics unpredictably. Snapchat reports continued growth among small- and medium-sized business customers and improved direct-response advertising performance. The company is testing infrastructure changes to lower costs in regions with weaker long-term monetization, aligning resources with financial opportunity but risking engagement trade-offs in those countries. Snapchat is refocusing on core opportunities and has struck a deal with Perplexity to integrate an AI-powered answer engine directly into the platform, which could boost engagement and audience reach. Uncertainty remains due to potential adverse effects of safety and verification policies.
Read at Social Media Today
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