Eric Siu breaks down Snapchat's advertising potential. The platform reaches 75% of 13-34-year-olds across 25 countries with 432 million daily active users, and users are 34% likely to purchase from a Snap ad. Snap Ads deliver around 3x return on ad spend and cost less than TikTok or Meta while reaching the same audience.
The question now is, is Snapchat a good moneymaker? And I wanted to share some insights with Snapchat. So Snapchat's interesting because they reach 75% of 13 to 34-year-olds in 25 countries with a combined $5 trillion in buying power, right? $5 trillion with a T. It's a lot of money. And then there's 432 million daily active users on Snapchat, and 34% of them are likely to buy products from a Snap ad. But the thing is, I think Snap has been kind of this stepchild. And the reason I even bring this up right now is Triple Whale did a study, the reporting company. They did a study showing that Snapchat is being slept on. And I think the return on ad spend is somewhere close to 3. Which is pretty good. And they're like, they're basically saying, hey, Snapchat, maybe you don't want to sleep on it because Snap Ads are still affordable, especially when you compare it to TikTok and Meta, meaning you can get more reach for your dollar while reaching an audience that's highly engaged. I think that's interesting from Triple Whale.
