Snapchat, the popular multimedia messaging app, is making headlines with its recent hires of former Facebook executives. The move has left many wondering whether the new additions to the team will be able to help Snapchat increase its ad sales and outperform its competitors, particularly Facebook’s meta platforms.
Snapchat has been a major player in the social media landscape for years, but it has struggled to keep up with the advertising revenue generated by meta platforms like Facebook, Instagram, and WhatsApp. In the third quarter of 2021, Snapchat reported $1.07 billion in revenue, a 57% increase compared to the same period in the previous year. While this was a strong result, it pales in comparison to Facebook’s ad revenue, which totaled $29 billion in the same quarter.
To address this gap, Snapchat has been making some key hires, including former Facebook executives. In 2021, Snapchat announced the appointment of Jeremi Gorman as Chief Business Officer and the hiring of Facebook’s former Head of Global Business Marketing, Carolyn Everson, as President. These hires are seen as a significant move by Snapchat to strengthen its position in the digital advertising market.
Jeremi Gorman is a seasoned executive who spent more than eight years at Amazon, where she helped grow the company’s ad business. At Facebook, she was the Head of Global Advertising Sales, where she was responsible for the company’s largest global advertising clients. Her experience in building out Amazon’s ad business makes her a valuable addition to Snapchat’s leadership team.
Carolyn Everson, on the other hand, was a long-time Facebook executive, where she held several key positions, including VP of Global Marketing Solutions and VP of Global Business Group. She was responsible for managing Facebook’s relationships with advertisers, agencies, and partners around the world. At Snapchat, Everson is expected to leverage her experience to help the company expand its partnerships and grow its ad business.
However, it’s not just these high-profile hires that are helping Snapchat’s ad business. The company has also been rolling out new features that allow advertisers to reach a wider audience, including its Spotlight feature, which showcases user-generated content. Snapchat has also been investing in augmented reality (AR) technology, allowing brands to create immersive experiences for users.
Snapchat has a unique user base that could be an advantage in the competition with Facebook. The app is particularly popular among younger demographics, with 90% of its user base aged between 13 and 24 years old. This makes Snapchat a valuable platform for brands that are looking to reach younger audiences.
However, there are challenges that Snapchat will need to overcome. Facebook’s meta platforms have a much larger user base and a more established advertising ecosystem. Facebook also has access to more user data, which allows advertisers to target specific audiences more effectively. This is an area where Snapchat will need to catch up if it wants to remain competitive.
In conclusion, Snapchat’s recent hires of former Facebook executives signal its commitment to strengthening its ad business and competing with meta platforms. The company’s unique user base and investment in AR technology could give it an edge, but it will need to continue to innovate and find new ways to attract advertisers. As the battle for ad dominance continues, it remains to be seen whether Snapchat will be able to outperform Facebook’s meta platforms.
