Snapchat UK ad revenues expected to surpass £100m in 2018

Joanna Estrada
March 19, 2018

Snapchat's United Kingdom ad revenue growth is forecast to soar from just £21.9m in 2016 to £181.7m next year.

New projections from eMarketer suggest that United Kingdom ad spending on Snapchat is set to rocket through the £100m mark this year as the company continues to add users outside its core market of the US.

The Big 2 will lose another point and a half next year, until their share of market begins to rebound again in 2020, according to eMarketer's analysts, who attribute the correction to gains by longer tail players, especially Snapchat, which is gaining almost a half a point per year now. The UK now accounts for about 10% of Snapchat's global ad revenues.

While Snapchat has seen-and will continue to see-explosive growth in both users and ad revenues, it will make up just less than 1% of United Kingdom digital ad spend this year.

But Snapchat is being touted as one to watch. A fairer comparison would be with Instagram, but even here Snapchat's revenues won't measure up, with the Facebook-owned platform expected to pull in 5% of all digital ad spend.

If this prediction comes to fruition Snapchat will take home nigh on £105m in revenues from Britain alone this year, close to double the equivalent figure from 2017. By comparison, Facebook (Snap's rival) will grab more than a fifth of United Kingdom ad spend.

But eMarketer says Snapchat will need to grow its appeal to a wider range of users to attract a more diverse range of advertisers.

Bill Fisher, eMarketer's United Kingdom senior analyst, said: "Snapchat continues to pull in users and, by extension, ad revenues".

The figures from eMarketer also show that the duopoly of Facebook and Google will continue to increase their stranglehold on the United Kingdom digital ad market. This year they will account for 65.8% of the market, and it is forecast that by 2020 this will have grown to 71.6%.

Other reports by Click Lancashire

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