In the fourth quarter of 2024, Snap Inc., the parent company of Snapchat, reported significant growth. Daily active users (DAUs) increased by 9% year-over-year, reaching 453 million. Revenue rose 14% to $1.56 billion.
Creator community has contributed to this growth
A key driver of this growth is Snapchat’s focus on its creator community. The platform introduced a unified monetization program, enabling creators to earn from ads within their Stories and longer Spotlight videos. This led to a 40% year-over-year increase in creator participation.
Snapchat’s Spotlight feature, highlighting user-generated content, saw a 25% rise in viewership over the past year. Starting February 1, 2025, eligible creators can monetize Spotlight videos longer than one minute.
Snapchat and its advertising landscape
The platform’s investment in artificial intelligence and machine learning has enhanced personalized ad experiences, attracting small and mid-sized businesses. This strategy contributed significantly to ad revenue growth in 2024.
Despite competition from platforms like TikTok, Snap CEO Evan Spiegel noted that uncertainties faced by competitors benefit Snapchat, as advertisers and creators seek diversified engagement across multiple platforms.
“I mean, certainly advertisers are very focused on contingency planning and diversifying their spend, and I think the same goes for creators who are really thinking hard about how they can build the most diversified engagement with their fan base across various platforms, including Snapchat. So a big priority for us is really just helping make sure we support advertisers and creators during this period of uncertainty,” Spiegel said.