Snapchat’s Spotlight Sees Significant Growth Amidst TikTok Uncertainty
Spotlight Watch Time Soars
Snap’s Q1 2024 earnings report revealed a remarkable 125% year-over-year increase in total watch time on Spotlight, its answer to the tiktok-claims-14-7b-boost-for-us-small-businesses-in-2022-amid-ban-threat/” title=”TikTok Claims .7B Boost for US Small Businesses in 2022 Amid Ban Threat”>popular short-form video app, TikTok. Launched in the latter part of 2020, Spotlight has been gaining traction as a formidable competitor in the short-form video space.
TikTok’s Uncertain Future
The news of Spotlight’s success comes on the heels of President Biden signing a bill that could potentially ban TikTok if its Chinese parent company, ByteDance, fails to sell the app within a year. This development has created an opportunity for rival platforms like Snapchat to capture a larger share of the short-form video market.
Improved Content Engagement and User Growth
Snap attributes the increased time spent watching content on its platform to advancements in its ranking models, which have led to better content engagement. The app also saw a 10% year-over-year growth in daily active users, reaching 422 million in Q1 2024. Additionally, Snapchat+ subscribers more than tripled compared to the previous year, surpassing 9 million subscribers.
Investing in Generative AI for Lenses
Snap plans to continue investing in generative AI models to enhance the creation of Lenses on its platform. The company reported a more than 50% year-over-year increase in the number of ML and AI Lenses viewed by users, highlighting the growing importance of AI-powered features.
Revenue Growth and Advertising Success
Snap’s revenue for the quarter increased by 21% to $1.195 million, marking a return to double-digit growth. The company attributes this growth to improvements in its advertising platform and increased demand for its direct-response (DR) advertising solutions. Notably, the number of small and medium-sized advertisers on Snapchat increased by 85% year-over-year.
Snap shares rose more than 26% in extended trading on Thursday.
Modest Headcount Growth Expected
Despite laying off 10% of its workforce in February, Snap now expects its headcount to “grow modestly” throughout 2024, signaling a more stable outlook for the company.
Comparison to Meta’s Earnings
Snap’s positive earnings report comes a day after Meta reported 27% growth for its first quarter. However, Meta’s shares plunged due to weak revenue guidance and plans to invest “aggressively” in AI.
5 Comments
Snapchat’s stepping up its game with those watch time numbers, guess TikTok’s not the only video giant on the block anymore!
TikTok might need to snap into action with those numbers flying!
Looks like Snapchat’s not just for disappearing messages anymore – those are some serious watch hours!
Snap’s on fire with those watch time stats, TikTok better watch its back!
Snap’s giving TikTok a run for its money, huh? Watch out!