Observed Signal · Oct 4, 2018 · Earnings Report · Source: OnlineMarketing.de · Impact: 4/5 · Sentiment: Negative
Snapchat 2018 Ad Revenues Lower Than Forecast
eMarketer revised Snapchat’s 2018 US advertising revenue forecast downward to $662 million, a 36% cut from prior estimates and well short of the $1 billion mark previously expected. The publication now projects Snapchat will likely not reach $1B in US ad revenue until around 2020. The downgrade cites a combination of shrinking user numbers and a shift to a largely programmatic ad system, which, while expanding advertiser adoption, generally reduced average ad prices. Programmatic ads reduce reliance on salespeople, though some advertisers report strong ROI while many remain skeptical about the audience reach and measurement versus Facebook. Snapchat is still expected to grow users among teens in the US, but the long-term outlook for ad revenue remains uncertain. Debra Aho Williamson, eMarketer Principal Analyst, provides the commentary surrounding the revision.
Forecast revision impacting AdTech revenue expectations; major market forecast by a leading industry observer (eMarketer).
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Key Takeaways & Evidence Grounding
- eMarketer revised Snapchat's 2018 US ad revenue forecast to $662 million, down 36%.
- Previous forecast estimated US ad revenue for 2018 above $1 billion.
- eMarketer expects Snapchat to surpass $1 billion in US ad revenue around 2020.
- Snapchat rolled out a programmatic ad platform in June 2017, shifting to a self-serve format.
- Programmatic ads increased advertiser count but generally lowered ad prices; some advertisers report strong ROI, while measurement lags behind Facebook.
Connected Companies & Entities
2 Entities mappedRelated Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
LinkedIn says don't treat leads as finish in B2B
At LinkedIn's B2Believe event in its new Empire State Building space, executives and practitioners called for a shift from lead-centric B2B marketing to a 'full journey' approach that links signals, targeting, creative, full journey, and measurement. Jae Oh, senior director of product management, revealed that fewer than 10% of upper-funnel audiences make it into bottom-funnel campaigns, urging marketers to connect awareness with demand capture. Research from LinkedIn's B2B Institute with eMarketer showed 77% of marketers say they no longer target individuals, yet only 31% have a playbook for activating audiences down the funnel. Practitioners from Canva, SAP, Mastercard, and others shared examples of aligning marketing and sales on common signals. LinkedIn also outlined a product roadmap focused on cost-per-opportunity targeting, multi-format campaigns, agentic workflows, and incrementality forecasting.
Snap Exec: Much AI-Generated Content Is Just Crap
In an interview at DMEXCO 2026, Jan Müller, Senior Sales Manager for Largest Customers DACH at Snap, discussed the platform's stance on AI-generated content. Snap has stopped recommending wholly AI-generated videos in Snapchat's Spotlight feed to combat what is often referred to as 'AI slop'. Müller acknowledged that while some AI-generated content is good, much of it is low quality. He also touched on the importance of authenticity and the mix of brand and performance advertisers on the platform.
Snap Exec Urges Brands to Embrace Private Chats
In a guest commentary on Meedia, Jan Müller, Senior Sales Manager Largest Customers DACH at Snap Inc., argues that brands must shift focus from reach to relevance in private communication channels. Citing Snap's 'The Great Brand Reset' study with Mindscope, he highlights that 56% of German respondents share content with a small, specific group, and 61% prefer private interactions with brands via DMs, stories, or chatbots. He emphasizes that chats are not just for customer service but offer potential for brand engagement, especially with Gen Z. He advocates for creating content that provides practical value, using camera and AR for try-before-buy experiences, and being relevant in moments of decision-making. The commentary provides no new product launches or company announcements.
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