Snapchat has seen a 2% or 3 million drop in daily active users, from 191 million in Q1 2018, to 188 million in Q2 2018. This marks the first time the platform has seen a shrink in its user base.
In a recent financials report, Evan Spiegel, CEO and co-founder explained that this was primarily driven by a “slightly lower frequency of use” among the platform’s user base due to “the disruption caused by [its] redesign.
“It has been approximately six months since we broadly rolled out the redesign of our application, and we have been working hard to iterate and improve Snapchat based on the feedback from our community,” Spiegel said. He added that the platform has now addressed the “biggest frustrations” from consumers, and is eager to make more progress.
He added that the number of people that watch Publisher Stories and Shows on iOS every day has grown by more than 15%. Additionally, more Snaps from Publisher Stories and Shows were viewed in July than any other month in the app’s history. Average revenue per user had increased 34% to US$1.40 in Q2 2018, compared to US$1.05 in Q2 2017. The second quarter also saw 11 of its shows reaching a monthly audience of over 10 million users, up from seven in Q1 2018.
For the three months ending 30 June 2018, Snapchat had spent US$101,685,000 on sales marketing, up from US$ 90,903,000 the year before. In the six months ending 30 June 2018, sales and marketing spend was at US$203,798,00, down from US$310,636,000 the year before.
For advertising highlights, the company transitioned its Story Ad product from its managed ecosystem to its programmatic auction. Snapchat has also made its Snap Pixel service available to advertisers of all sizes, allowing them to measure the cross-device impact of their campaigns.
The platform has also updated its self-serve platform to provide performance-focused advertisers with a full suite of tools needed to optimise and measure their Snapchat campaigns. This includes the ability to bid on goals such as web conversions, return on ad spend reporting, and conversion lift capabilities, effectively rounding out our Snap Pixel offering.
It announced that advertisers can purchase Lens campaigns using our Reach & Frequency tool in Ads Manager. This means that all of itsadvertising formats – Snap Ads (including Story Ads) and Creative Tools (Lenses and Filters) – are now available programmatically.
To better aid content creators in monetisation through its programmatic marketplace, Snapchat launched two new initiatives. This includes Commercials, a non-skippable six-second Snap Ad that appears in Discover Shows, to Ads Manager, and Private Marketplace, an invite-only tool within Ads Manager that publishers use to allow specific advertisers to target their content.
Recent times have also seen the social network launching three new initiatives for campaign planning and analysis. This includes Audience Insights, Advanced Location Targeting and Delivery Insights.
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