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Snapchat recently revealed its Investor deck and its Quarter 2 performance report for 2023 suggests that the platform has over 750 million monthly active users, reaching 90% of the 13 to 24-year-old population and 75% of the 13 to 34-year-old population in over 20 countries.
According to Snapchat, “In Q2, we made progress toward improving results for advertisers through machine learning (ML) model updates and infrastructure improvements, new ways of measuring and optimizing advertising spend, and new leadership for our go-to-market efforts. We are pleased to see that this progress is beginning to translate into improved results with record active advertisers in Q2, up more than 20% year-over-year, and through improved advertiser retention compared to the same time period last year.”
To be precise, more and more advertisers are getting attracted to the app which also bodes well for future success and growth opportunities, but it’s not quite translating into big dollars for the company right now, as it continues to focus on building its more advanced ad targeting tools, and re-shape its systems in light of evolving privacy and data restriction measures.
Snapchat’s Daily Active User Statistics for 2023
Snapchat has recently announced its Q2 2023 performance report, and highlights suggest a surge in user growth, particularly in developing markets. Notably, the platform added 14 million daily active users (DAU), bringing the total to 397 million DAU in 2023. Furthermore, Snap’s ad business is showing signs of recovery, with an increase in ad partners witnessing improved optimization performance.
The primary source of growth remains the “Rest of the World” category, with Snap adding only a million users each in North America and the EU. However, the app experienced remarkable expansion with the addition of 12 million users outside its main markets.
India, in particular, has shown significant uptake due to increased mobile adoption and better connectivity, presenting exciting opportunities for the app to reach a broader audience.
In the past year, the platform has successfully added 40 million new users in the “Rest of the World” category and also added 10 million new users in the US and EU apparently creating a new record.
The report stressed another fact that although the immediate revenues are not as significant as expected, however, the increase in daily users suggests that there will be future opportunities for the platform in the specific regions waiting to be tapped.
Snap’s overall revenue for Q2 comes in at just over a billion dollars, which is a decrease of 4% year-over-year, but an increase of 8% quarter-over-quarter. The platform still seems to be recovering from the impacts of a shift in the digital ad market, and a broader economic downturn. But it needs to be noted, that there has been significant improvement in the performance of its ad tools, leading to stronger take-up over time.
How is Snapchat + doing for the platform’s growth?
Talking about Snapchat + and Spotlight, the platform says that they have now reached more than 400 million users each month, which is around a 51% increase year-over-year. Claiming that while replicating a feature may seem like cheating or a poor cheap tactic in the digital space, there’s clear logic as to why apps steal each other’s best ideas to keep up with the competition.
Snapchat+ as of now has also continued to see strong take-up by recently reaching 4 million paying subscribers in Q2 2023. The platform has seen better results with Snapchat + than Twitter has seen with its Twitter Blue strategy. Reflecting that the value Snap provides to users and the utility of its features or add-ons as the Snapchat + package is of significant importance for the users.
Snap’s also seen a lot of user engagement and interest in its “My AI” conversational chatbot, which began as a Snapchat+ exclusive but was later made available to all users to drive engagement.
According to Snapchat, “Since launching My AI, our AI-powered chatbot, over 150 million people have sent over 10 billion messages, which we believe makes My AI among the largest consumer chatbots available today. We are testing My AI monetization with sponsored links that connect our community with partners relevant to their conversation at that moment while helping brands reach Snapchatters who have indicated potential interest in their offerings.”
As there is a growing interest in generative AI for users and the companies who are experimenting with it in every possible way, Snap’s been successful in tapping into this with its in-app element. The platform has also introduced visual elements to My AI, so users can now generate responses from the tool-based visual cues while it’s also working on generative visual tools as an expanded AI feature. Isn’t that exciting?
Snap sure has some new ways under its sleeves to get its ad business back on track, and all the signs here are extremely positive and motivating, as more users using the app in developing markets, and more advertisers try out Snap’s improving ad offerings, which will likely lead to more revenue in future.
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