[SMK] Social Media Knowledge


Snapchat slashes Ad Costs to save Bottom Line

Snapchat’s parent company Snap looks to increase revenue with late-in the game online coupons and incentives to media partners.

Snap looks to crack champagne, last minute

Achieving only US$149.65 million out of projected US$157.98 million in the first quarter was a result of a singular share-based expense compensation.

A drop in daily active users also played a role as they saw a drop in 2 million DAUs, shy of their ideal 168 million.

As a bottom line, Snap’s IPO came up drastically short and measures were needed to be enacted if they were to recoup losses.

A rolling stone loses momentum

Seasonality plays a large role in snaps active user base, seeing US$32.72 million in revenue during fourth quarter 2015 along with US$38.79 million in it’s first quarter of 2016.

Large conglomerate entities such as Google (after nine years), Facebook, and Twitter (after four years), have all seen this sort of decline in growth and seems to be a natural course.

Do you think Snap’s discount power play will pay off? 

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Live Member Clinics every Monday & Tuesday from 1 pm – 2 pm AEST

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Weekly Technical Labs: Meta Business Suite on Wednesdays from 1 pm – 2 pm AEST

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Google Analytics 4, Data Analysis & Evaluation Masterclass on Thursdays from 10 am – 12 pm AEST

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  • Module 2: Setting up GA4 Conversions & Understanding Analytics Events
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Influencer Marketing Masterclass: Organic, Paid & Commerce on Fridays from 10 am – 12 pm AEST

  • Module 1: 2024 Influencer Marketing Trends, Forecasts & Opportunities
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  • Module 3: Optimising Influencer Campaigns With Social Ads
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