Snapchat has seen its forecasted ad revenues for the year cut by more than $125m to $774.1m, due to slow advertiser adoption and slower-than-expected user growth.
eMarketer’s latest forecasts reduce estimates from the $900m predicted for the year in March 2017, which in itself was a reduction from the $935.5m predicted in October 2016.
In the US, Snapchat’s ad revenues are expected to total $642.5m this year, down from the $770m predicted in March and the $805m forecast in July 2016.
The falling ad revenue predictions reflect the scepticism of many advertisers to take the leap with advertising on Snapchat. This is despite Snapchat’s efforts to introduce a range of ad products over the last year, including its self-serve ad buying system, and its measurement partnerships.
Though there are a seeming lack of positives, eMarketer expects Snapchat to show strong growth over the next two years – with US ad revenues expected to top $2bn by 2019. Furthermore, Snapchat is set to surpass Twitter in US ad revenues next year. Snapchat is predicted to bring in $1.18bn versus Twitter $1.16bn. This gap is expected to grow massively in 2019, with Snapchat’s ad revenues being almost double Twitter’s.