SNAP’s Advertising and Revenue Challenges Analysis
Bloomberg Technology
The discussion revolves around the challenges and progress in SNAP's advertising-based business. Despite efforts to overhaul its ad business, positive indicators include an increase in active advertisers and substantial revenue from Snapchat Plus. However, direct response advertising needs significant improvement to attract more advertisers and budget commitments. The company's stock has plummeted almost 25%, the largest drop since February, prompting analysts to cut their price targets. SNAP's comparison with larger competitors like Meta highlights its smaller scale but significant user base of 850 million monthly active users. The need for SNAP to intensify focus on its ad business to bridge the gap with competitors and sustain growth is evident.
Highlights
- • SNAP has overhauled its ad business but faces significant challenges.
- • A noticeable growth in active advertisers has been seen.
- • Snapchat Plus contributes over $100 million in revenue.
- • Improvements in direct response advertising were observed.
- • Brand advertising remains a headwind for SNAP.
- • SNAP's stock dropped nearly 25%, its largest since February.
- • Analysts have cut their price targets for SNAP.
- • Comparison with larger competitors like Meta shows SNAP's smaller scale.
- • SNAP has 850 million monthly active users, highlighting its significance.
- • Emphasis on enhancing the ad business to stay competitive is critical.
* daven helped DAVEN to generate this content on 08/06/2024 .
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