During Q1, Snapchat saw its highest year-over-year revenue and daily active user growth rates in over three years. Based on MediaRadar’s latest analysis, it looks like the app is maintaining that momentum. It found that during April, brands’ ad spend on Snap increased 24 percent YoY.
Alongside new film releases, entertainment accounted for 42 percent of Snap’s ad spend so far in Q2. MediaRadar reports that HBO Max, Paramount+, BET+, Hulu and Amazon Prime spent over $2.8 million on Snap ads, representing 6 percent of all of Snap’s ad spend during April.
The top-spending advertisers were feature films including Without Remorse, Mortal Kombat and Fast & Furious 9, whose collective spend totaled over $5 million.
Other big Snap spenders in the entertainment category included streaming services (15 percent), mobile application (14 percent) and drama TV shows (13 percent).
After entertainment, the industries that spent the most on Snap ads were fashion, pharmaceutical and retail—each accounted for nearly 10 percent of ad spend on Snap in April. Zyrtec Allergy, Nike, Levi’s, Columbia, Lids and shopDisney were the top-spending brands, according to MediaRadar.
Highlights from Snap’s Q1 earnings report include reaching 280 million DAU, a 22 percent increase YoY, and generating $770 million in revenue, a 66 percent increase YoY.
The company also said that daily user engagement with its augmented reality (AR) Lenses grew more than 40 percent YoY. It outlined plans to capitalize on this trend via product innovation in ecommerce.
“One of the key verticals we are tailoring our solutions for is apparel and accessories, which is the largest shopping category by far among US teenagers. We believe that helping buyers find the right size, fit and styles will reduce friction in their online shopping experience, which in turn will improve revenue and margins for our business partners while reducing the waste generated from returns,” said Snap’s chief executive Evan Spiegel.
On the heels of a successful Q1, Snapchat is presenting at IAB’s 2021 NewFronts, “Living the Stream,” alongside competitors TikTok and YouTube.