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Snapchat Rises to 319 Million Daily Users, Posts Strong Revenue Result for Q4

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Snapchat Rises to 319 Million Daily Users, Posts Strong Revenue Result for Q4

Snapchat added more users, while it also posted a strong revenue result for Q4, as it continues to establish its role as a key connective platform for younger audiences, in alternative to the larger social media players.

First off, on users – Snap added 13 million more daily active users in Q4, taking it up to 319 million overall.

As you can see from this chart, Snap’s overall audience has increased by 20% year-over-year, while it saw its most significant growth in the ‘Rest of the World’ segment, which rose by 10 million users.

Snapchat’s seen particularly good growth in India, as connectivity continues to evolve in the region, which could end up being a big winner for the app.

As a reminder, TikTok had over 200 million Indian users before it was banned in June 2020 due to an ongoing border dispute. Maybe now, Snap is taking up that mantle, and with its own, TikTok-like ‘Spotlight’ feature also gaining traction, that could see its audience continue to rise in the region, helping to boost its overall audience figures.

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Indeed, Snapchat also reports that the number of Spotlight viewers going on to subscribe to a Creator more than doubled quarter-over-quarter, a positive sign for the function, while it’s also served as a key tool for promoting Snap’s AR functionality, with over 65% of Spotlight submissions now utilizing one of Snapchat’s AR Lenses or other creative tools.

In this sense, Spotlight is not only working as a TikTok alternative within the app, but also as a means to promote Snap’s broader offerings, which is a big plus in helping to further solidify in-app engagement.

On the revenue front, Snapchat brought in $1.3 billion in revenue in Q4, rising 42% year-over-year.

Snapchat Q4 2021

There are positive signs all round here – and while its revenue per user numbers in the ‘Rest of the World’ category only jumped slightly over the previous Q4 numbers, Snap’s still increasing its revenue intake, in line with user growth.

Snapchat Q4 2021

These are strong signals for Snap’s ongoing business evolution, and its opportunities in new regions. Again, ideally, you would want to see Snap’s ‘Rest of the World’ ARPU up higher than this, but as it continues to add more users, the fact that such growth is not diluting its numbers reflects rising advertiser interest.

Which is also the focus of this chart, which Snap has additionally included as a reflection of its growing potential.

Snapchat Q4 2021

That’s a good summary of Snap’s evolving business focus. Once criticized for not focusing on business opportunities, and even dismissing potential growth in certain markets due to perceived lack of value, Snapchat has now matured a lot, and its structure and systems are more clearly aligned around building a sustainable business model, which offers opportunity both for user engagement and advertising reach.

A key element of this has been the development of its original Discover content, short-form, TV-like programming that aligns with the viewing habits of younger audiences. With younger viewers less inclined to sit through an entire 30 minute TV show – because they’ve grown up in a world where they can easily flip between inputs as soon as they lose interest –Discover content reflects a paradigm shift in traditional TV consumption, which has significant appeal to Snap’s audience.

As explained by Snap CEO Evan Spiegel:

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“In Q4 2021, 25 different Discover partners each reached over 50 million unique Snapchatters globally. This captures a wide range of genres, from Universal Music’s Rebel Labs, to social publisher Jungle Creations’ lifestyle content, Team Whistle’s sports content, and Creator-driven Shows from Jellysmack. We are also introducing more locally relevant partners worldwide. We added more than 160 new channels in the quarter from Discover partners outside of the U.S. and onboarded new partners including Seven.One Entertainment Group in Germany and Canal+ in France.”

Just recently, Snap also announced new content partnerships with Disney, Viacom and NBCUniversal, reflecting ongoing publisher interest in Discover as a means to connect with younger audiences.

Thus far, that appears to be generating strong results, and if Snap can continue to lean into this behaviour, and cater to audience demand and interest, this will remain an important growth avenue for the app.

AR is also a key element of the broader Snap experience, with Snap noting that over 200 million users now engage with AR on Snapchat every day. Snap also reports that users ‘play’ with AR Lenses more than 6 billion times per day, and with the company also developing AR-enabled Spectacles, as the next stage of digital connection, Snap looks set to remain at the forefront of the AR shift moving forward, even as other companies look to muscle in.

Snap AR spectacles

Spiegel specifically notes that Snap ‘made significant progress’ with its Spectacles AR glasses in Q4, as it continues to push for a consumer release. I mean, they still look a little sci-fi for my liking (which is why Meta partnered with Ray Ban for its first-run at connected glasses), but a lot could change ahead of the product launch, and with its established production and distribution channels already in place, Snap does look set to be a key player in this race, even up against the virtually endless resources of Apple and Meta, which are also working to bring them to market.

Snap’s big hope on this front lies in partnering with AR creators from the beginning, with a range of experts around the world already developing new experiences for Snap’s AR Spectacles.

“Hundreds of Creators from 30 countries have now developed AR Lenses for Spectacles, overlaying computing on the world in an immersive and interactive way. We have continued to make software improvements and offer new capabilities for developers, including Connected Lenses, which link multiple Spectacles users to participate in the same AR experience together, and Location Triggers, which lets Creators customize Lenses to adapt as they visit specific locations.”

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Maybe, be democratizing creation in this way, as opposed to keeping things in-house, Snap will be better placed to include more innovative, responsive AR features at launch, which could give it a leg up on the competition.

And while neither Snap nor Apple have mentioned it, I wouldn’t be surprised to see the two team up to take on Meta with a collaborative AR glasses project.

On another front, Snap’s infrastructure costs remain relatively high, as a percentage of its cost of revenue, due to its reliance on third-party cloud infrastructure, something that’s been problematic for the company in the past. That puts more pressure on Snap to bring in more ad dollars to offset rising costs related to increased usage.

And interestingly, Snap’s also noted a key shift in user behavior, in relation to how users are communicating in the app.

“In Q4 2021, the number of content viewers on Snapchat continued to grow at a significantly faster rate year-over-year than overall time spent watching content, as a decline in time spent watching Stories created by friends was offset by growth in time spent watching premium content in Discover as well as content in Spotlight. This is a continuation of the trend we have observed throughout the pandemic, and friend story posting and viewing per Daily Active User have not returned to pre-pandemic levels.”

More people watching content, but spending less time doing so, while viewing content created by friends is also falling. That could reflect the relative growth of short-form video content, but the reduced engagement among friends is something to keep tabs on moving forward, especially given Snap’s focus on more intimate connection.

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Overall, it’s a good report card for Snap, with the numbers showing steady growth in key areas, and reflecting its focus on the right elements for its community. And if it can become a key connective platform in more emerging markets, Snap’s opportunities will continue to grow, facilitating more forms of connection in user communities.


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Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

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Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

In a recent announcement, Snapchat revealed a groundbreaking update that challenges its traditional design ethos. The platform is experimenting with an option that allows users to defy the 24-hour auto-delete rule, a feature synonymous with Snapchat’s ephemeral messaging model.

The proposed change aims to introduce a “Never delete” option in messaging retention settings, aligning Snapchat more closely with conventional messaging apps. While this move may blur Snapchat’s distinctive selling point, Snap appears convinced of its necessity.

According to Snap, the decision stems from user feedback and a commitment to innovation based on user needs. The company aims to provide greater flexibility and control over conversations, catering to the preferences of its community.

Currently undergoing trials in select markets, the new feature empowers users to adjust retention settings on a conversation-by-conversation basis. Flexibility remains paramount, with participants able to modify settings within chats and receive in-chat notifications to ensure transparency.

Snapchat underscores that the default auto-delete feature will persist, reinforcing its design philosophy centered on ephemerality. However, with the app gaining traction as a primary messaging platform, the option offers users a means to preserve longer chat histories.

The update marks a pivotal moment for Snapchat, renowned for its disappearing message premise, especially popular among younger demographics. Retaining this focus has been pivotal to Snapchat’s identity, but the shift suggests a broader strategy aimed at diversifying its user base.

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This strategy may appeal particularly to older demographics, potentially extending Snapchat’s relevance as users age. By emulating features of conventional messaging platforms, Snapchat seeks to enhance its appeal and broaden its reach.

Yet, the introduction of message retention poses questions about Snapchat’s uniqueness. While addressing user demands, the risk of diluting Snapchat’s distinctiveness looms large.

As Snapchat ventures into uncharted territory, the outcome of this experiment remains uncertain. Will message retention propel Snapchat to new heights, or will it compromise the platform’s uniqueness?

Only time will tell.

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Catering to specific audience boosts your business, says accountant turned coach

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Catering to specific audience boosts your business, says accountant turned coach

While it is tempting to try to appeal to a broad audience, the founder of alcohol-free coaching service Just the Tonic, Sandra Parker, believes the best thing you can do for your business is focus on your niche. Here’s how she did just that.

When running a business, reaching out to as many clients as possible can be tempting. But it also risks making your marketing “too generic,” warns Sandra Parker, the founder of Just The Tonic Coaching.

“From the very start of my business, I knew exactly who I could help and who I couldn’t,” Parker told My Biggest Lessons.

Parker struggled with alcohol dependence as a young professional. Today, her business targets high-achieving individuals who face challenges similar to those she had early in her career.

“I understand their frustrations, I understand their fears, and I understand their coping mechanisms and the stories they’re telling themselves,” Parker said. “Because of that, I’m able to market very effectively, to speak in a language that they understand, and am able to reach them.” 

“I believe that it’s really important that you know exactly who your customer or your client is, and you target them, and you resist the temptation to make your marketing too generic to try and reach everyone,” she explained.

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“If you speak specifically to your target clients, you will reach them, and I believe that’s the way that you’re going to be more successful.

Watch the video for more of Sandra Parker’s biggest lessons.

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Instagram Tests Live-Stream Games to Enhance Engagement

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Instagram Tests Live-Stream Games to Enhance Engagement

Instagram’s testing out some new options to help spice up your live-streams in the app, with some live broadcasters now able to select a game that they can play with viewers in-stream.

As you can see in these example screens, posted by Ahmed Ghanem, some creators now have the option to play either “This or That”, a question and answer prompt that you can share with your viewers, or “Trivia”, to generate more engagement within your IG live-streams.

That could be a simple way to spark more conversation and interaction, which could then lead into further engagement opportunities from your live audience.

Meta’s been exploring more ways to make live-streaming a bigger consideration for IG creators, with a view to live-streams potentially catching on with more users.

That includes the gradual expansion of its “Stars” live-stream donation program, giving more creators in more regions a means to accept donations from live-stream viewers, while back in December, Instagram also added some new options to make it easier to go live using third-party tools via desktop PCs.

Live streaming has been a major shift in China, where shopping live-streams, in particular, have led to massive opportunities for streaming platforms. They haven’t caught on in the same way in Western regions, but as TikTok and YouTube look to push live-stream adoption, there is still a chance that they will become a much bigger element in future.

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Which is why IG is also trying to stay in touch, and add more ways for its creators to engage via streams. Live-stream games is another element within this, which could make this a better community-building, and potentially sales-driving option.

We’ve asked Instagram for more information on this test, and we’ll update this post if/when we hear back.

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