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Snapchat owner braces for cold winter as ad revenue slows

October 21, 2022

A needed turnaround for Snap appears a long way off as a dour economy and ongoing headwinds tied to Apple’s privacy changes roil the business. In its letter to investors, the social media firm gave more color on the state of advertiser demand, with direct-response formats growing “modestly faster” than other areas in Q3 while brand-based advertising saw declines.

The latter part of that assessment poses a problem, as Snap noted that “Q4 has historically been relatively more dependent on brand-oriented advertising revenue.” The period is an important one for platforms and publishers because it contains the holiday season, when marketers ramp up promotional activity. This year could be relatively anemic given economic troubles that Snap indicated are impacting campaign budgets even in categories with sturdier top-line growth.

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