Todd Krizelman, CEO of MediaRadar, a leading ad sales intelligence company, appeared on Fox Business’s Countdown to the Closing Bell on Tuesday, April 23, 2019. During the segment, Krizelman discussed Twitter’s (NYSE: TWTR) recent success as well as predicted, success for Facebook, Inc. (NASDAQ: FB) and Snap Inc. (NYSE: SNAP) as they prepared to release their Q1 Earnings. (At the time of the program, neither company had released their earnings).
Krizelman expressed optimism in anticipation for the release of the official report from Snap Inc. He stated, “We are encouraged, but not surprised, to see SNAP have another positive quarter. The company has a healthy mix of both new and returning clients, has the loyalty of major advertisers like Comcast, Adidas, and Disney, and saw their roster of advertisers swell by 15% in Q1 2019.”
Shortly after Krizelman shared his predictions, Snap Inc. released strong Q1 Earnings. Snap Inc. reported, revenue increased 39% to $320 million in Q1 2019, compared to the prior year.
“In the first quarter we delivered strong results across our business with growth in daily active users and revenue,” said Evan Spiegel, CEO of Snap Inc. “Our new Android application is available to everyone, with promising early results. This month we announced several new products that we believe will drive further engagement and monetization. As we look towards the future, we see many opportunities to increase our investments, and will continue to manage our business for long-term growth.”
Snapchat Key Advertising Insights for Q1
MediaRadar reviewed advertising across Snapchat’s platform. Overall, Snap’s advertisers see success on the platform.
- The number of brands placed on premium Snapchat Discover channels is up 15% Q1 year-over-year.
- 58% of Snapchat’s Q1 2019 advertisers renewed from a prior period, which is a great sign of long-term adoption.
- Snap is also breaking new business. During Q1 2019, 42% of advertisers were new to the platform.
According to their earnings report, as of March, Snapchat reaches 90% of all 13-24 year-olds and 75% of all 13-34 year-olds in the U.S. Snapchat continues to defend the title of one of the most powerful platforms to reach them. MediaRadar shared, during Q1, Snapchat saw strength in the following key categories: Media & Entertainment, Tech, Retail, Apparel.
MediaRadar’s breakdown of Snapchat’s 2018 ad revenue by category
Top Snapchat Advertisers in Q1 2019
According to MediaRadar’s data, the top 10 advertisers on the platform increased their investment in Snap in Q1 2019. Snapchat’s top ad buyers are Comcast, AT&T, Mars, The Walt Disney Company, Adidas, Pepsi, Exxon Mobil, Procter & Gamble, Las Vegas Convention and Visitors Authority, and Verizon.
We anticipate the release of Facebook Inc’s earnings report later today. Snap Inc’s Earnings report was released at 4:10 pm, and stock prices jumped approximately 5% in the first 20 minutes after their earnings were released. Will Facebook have the same success in Q1 2019?