Snapchat could become more popular with advertisers than Twitter, Yahoo and AOL within three years. eMarketer forecasts that the messaging app will bring in revenues in excess of $3 billion a year before the end of 2019.
The forecast is based on advertisers targeting the youth audience that the photo app has seemingly cornered. More than half (51 per cent) of video users on Snapchat are under 24, compared with 23 per cent for Facebook and 17 per cent for Google’s YouTube (according to Ampere Analysis).
Brands are also eager to see a true rival emerge to challenge Facebook and Google, which have recently come in for criticism for their advertising practices.
“You often hear advertisers saying they are getting uncomfortable with such a large portion of ad spend going to just two players,” said Cathy Boyle, principal analyst at eMarketer, which produced the global mobile ad forecast. “If there can be a third or fourth player they are interested in spreading the wealth beyond the duopoly.”
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