eMarketer Cuts its 2017 Ad Revenue Forecast for Snapchat by $128m (Oct 2, 2017)
eMarketer, a research firm which offers projections of ad revenue by company, has lowered its 2017 US forecast for Snapchat for the second time this year. It’s now projecting a total of $642m for the year, down from the most recent forecast of $770m, and the original forecast of $800m. Projecting Snap’s ad revenue is difficult for several reasons, not least that the company itself doesn’t provide any guidance, but also because its shift to serious revenue generation began so recently that there’s no reliable growth rate to base future projections on – year on year percentage growth has slowed from over 400% to 286% to 153% in the last three quarters even as dollar growth has been pretty strong. Snap’s North American revenue in the first half of 2017 was $277 million, meaning that eMarketer is projecting roughly 30-40% growth in the second half over the first half. That’s fairly modest, but as we’ve seen recently Snapchat’s user growth has been modest too, and although ARPU is rising fast, it may not continue to do so at the same pace. There’s growing skepticism about Snap’s business overall, and this report feeds into that overall skepticism, but I suspect it may be a little too pessimistic based on Snap’s strong second-half revenue performance last year. But we’ll know soon enough what Q3 looks like, at least.
via Business Insider
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