Snapchat | April 26, 2021
Advertisers are increasing their spending on Snap as the world reopens.
Snap reported US$770 million in Q1 revenue on Thursday, a 66% growth year on year, as the number of advertisers it deals with nearly doubled.
Snap's ad business is expanding in all ways. Direct response ads currently account for more than half of the platform's revenue. Snap, on the other hand, tripled the number of upfront commitments it got from brands this year compared to 2020.
Over the same time frame, Snaps' user base rose by 22% to 280 million, while average revenue per user increased by 36% to $2.74 year over year.
Since the majority of Snap's users use Android smartphones, insulating it somewhat from upcoming tracking changes on Apple’s iOS 14.5.
Advertisers are increasing their spending on Snap as the world recovers from the pandemic and the ad economy heats up again.
Snap, which has been beefing up its direct response and e-commerce capability, is seeing travel and leisure advertisers, which have been hard hit by the pandemic, rebound “with a fury,” according to chief business officer Jeremi Gorman, highlighting the company's March acquisition of AR e-commerce platform Fit Analytics.
Ecommerce, CPG, technology, streaming, online education, and telco brands are all showing interest in the platform.
“We are seeing the return of some previously powerful categories, such as theatrical and movies,”she said.
Snap is prioritizing augmented reality, partnering with brands such as Sweat, Gucci, The North Face, and American Eagle on branded lenses this quarter. In Q1, almost half (40%) of Snap users used filters regularly, with more than half of them being branded.
“Augmented reality is one of our most exciting challenges as we look forward, and we are investing heavily in both core technology and community-facing AR apps on our service,” Evan Spiegel, co-founder and CEO of Snap, said during the earnings call.
Snap also introduced a TikTok-rival update, Spotlight, in Q4, which was used by more than 125 million people in Q1. India, Mexico, and Brazil are now among the countries that have access to this feature.
The IDFA to drop
Snap is still unsure how Apple's App Tracking Transparency changes, which are set to take place on Monday, would affect its business. However, the company expects to grow by 80% in the second quarter.
“It is not yet clear what the longer-term effect of the iOS platform updates might be on the topline momentum of the business,” said chief financial officer Derek Anderson.
According to Spiegel, Apple's decision to delay the updates until April has given Snap time to implement SKAdNetwork, Apple's solution for measuring user activity across its applications, which it is testing with partners along with other "privacy-centric" solutions.
NexTech AR Solutions Corp | August 18, 2021
NexTech AR Solutions Corp.,an emerging leader in augmented reality for eCommerce, AR learning applications, AR-enhanced video conferencing and virtual events, today announced the launch of its next generation Ad technology.
With this announcement NexTech’s customers can now tap into Google’s immense network, delivering engaging and streamlined 3D ads that extend to AR at scale that do not require application download. The upgrade leverages WebXR and also enables a robust AR experience with each Ad. NexTech Ads also provide rich and robust analytics giving customers data driven insights so they can better capture impressions, clicks, interactions and gain overall AR engagement data.
NexTech CEO Evan Gappelberg commented on this product enhancement. “Digital consumers are looking for engaging immersive experiences. The combination of Nextech AR’s 3D model creation at scale with Nextech’s Ad Network now on Google Ads creates an incredibly valuable offering that accelerates our customer’s reach with higher engagement levels. The Google Display Network reaches 90 percent of internet users worldwide, across millions of websites, news pages, blogs and Google sites like Gmail and YouTube,” said Gappelberg.
Analytics from NexTech’s Vacuum Cleaner Market (VCM) indicate click through rates (CTR) of approximately 5 percent for 3D Ads created with NexTech 3D tools, compared to average Google CTR of 1.55 percent according to Smart Insights. NexTech’s 3D technology enabled on Google’s expansive Ad network offers a compelling advertising tool. Google estimates that as of 2021, that their search engine processes approximately 63,000 search queries every second, translating to 5.6 billion searches per day and approximately 2 trillion global searches per year. According to eMarketer, Digital Ad spend will be 455.3 billion in 2021 with 55.2% of that going to display advertising.
NexTech 3D advertising customers such as Motif, a leading fashion knowledge and educational hub are recognizing NexTech’s 3D advertising suite of tools as a game changer. “Partnering with Nextech AR Ad Network gives us extended reach to new B2B communities in consumer product goods, fashion & apparel and branding agencies. Its 3D advertising capabilities were a key draw for us and enables us to illustrate to prospective students the type of 3D models they can create through our 3D digital fashion course with Roz McNulty”, said Elisabeth Souquet, Marketing Director at Motif. Now, with NexTech’s rollout of 3D Google Ads, customers such as Motif can extend 3D advertising built with NexTech tools to reach a significantly broader audience.
About NexTech AR
NexTech develops and operates augmented reality (“AR”) platforms that transports three-dimensional (“3D”) product visualizations, human holograms and 360° portals to its audiences altering e-commerce, digital advertising, hybrid virtual events (events held in a digital format blended with in-person attendance) and learning and training experiences.
NexTech focuses on developing AR solutions however most of the Company’s revenues are derived from three e-Commerce platforms: vacuumcleanermarket.com (“VCM”), infinitepetlife.com (“IPL”) and Trulyfesupplements.com (“TruLyfe”). VCM and product sales of residential vacuums, supplies and parts, and small home appliances sold on Amazon.
Billups | February 22, 2022
Billups, the largest privately held out-of-home (OOH) technology and managed services company in the U.S., has acquired the assets of Outchart, a full-stack software provider for the digital out-of-home marketplace. The acquisition follows Billups' recent purchases of Ads on Top in 2022 and MacDonald Media in 2020. The company's growing footprint now covers 19 U.S. and five European markets with over 120 employees.
Together, Billups and Outchart will work to deliver on the vision of innovative, data-driven and single-stop technology solutions for out-of-home media advertisers, agencies and media owners. At the time of the acquisition, Outchart offered digital OOH media owners a cloud-based software solution built by a roster of OOH and technology experts. The software provider operated in the U.S. and UAE, helping owners to automate campaign and screen management workflow to leverage programmatic revenues.
"All my life, I've been passionate about bringing businesses and developers together to create platforms that automate everyday workflows. I'm excited to join forces with Billups and their deep data and technology bench and OOH media experts," said Igor Kuznetsov, Chief Product Officer at Outchart.
"I am so thrilled to become a part of the Billups team, where so many beautiful minds work under the same roof to deliver best-in-class digital OOH, programmatic products and services," said Dmitry Semenov, Chief Business Development Officer at Outchart.
We are excited for our partnership with Outchart to bring us closer to transforming the out-of-home industry into a truly unified experience. Combining the strengths of our companies and relentless commitment to advanced technology and programmatic opportunities allow us to accelerate our business forward — not just domestically but globally."
Benjamin Billups, Co-founder of Billups.
Rob MacMillan and David Tolliver of Castlewood Advisors exclusively represented Outchart in the sale of the business.
Billups is revolutionizing the out-of-home media experience. Blending art and science with advanced technology, we lead the industry with scientific targeting, accurate out-of-home measurement and an innovative AI-powered recommendation engine. Founded in 2003, Billups helps the world's leading brands navigate and optimize their out-of-home investment.