Snap ad revenues will see growth rebound in 2024, boosted by AI

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Next year, Snapchat’s ad revenues will increase by 10.4% worldwide after a year of almost no growth. Its ad revenues will rise from $3.80 billion this year to $4.20 billion next year, but they’ll still make up just 0.6% of total digital ad revenues worldwide.

Beyond the chart: Snap reported late last month that its quarterly revenues had fallen for the first time since the company went public in 2017. Days after the earnings report, the company announced new AI-driven ads at the Interactive Advertising Bureau NewFronts. But Snapchat remains difficult to monetize as it is primarily a messaging app, and its users aren’t as open to ads as users of other social networks are.

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Methodology: Estimates are based on the analysis of various elements related to the ad spending market, including macro-level economic conditions, historical trends of the advertising market, historical trends of each medium in relation to other media, reported revenues of major ad publishers, estimates from other research firms, data from benchmark sources, consumer media consumption trends, consumer device usage trends, and eMarketer interviews with executives at ad agencies, brands, media publishers, and other industry leaders.