Skip to content

Snap’s growth plans can attract more digital ads, Spotlight in focus


The camera app company Snap Inc. (NYSE: SNAP) has aggressively been pursuing growth opportunities to expand its user base by integrating new features. With the launch of the much-waited ‘Spotlight’ video feature, Snap appears in a position to generate more ad revenue in the days ahead, according to analysts.

“The Spotlight feature will re-energize public content creation on Snapchat, and create valuable incremental ad opportunities,” said Stifel Nicolaus analyst John Egbert.

The new video entertainment feature will provide an opportunity for surfacing the most entertaining Snaps from the community.

Like a small video clip app TikTok, Snap plans to offer money to users who submit video clips, with expectations that payouts would reach $1 million every day.

SNAP Snap Inc. daily Stock Chart
Sanp stock performance. Finviz chart

The shares of camera app company soared close to 170% since the beginning of this year as pandemic related social distancing policies are helping in boosting the user base and revenue growth. Jeffries says Snap is likely to benefit from increasing digital advertising.

Spotlight feature will fuel ad revenue growth

The company expects that the latest spotlight feature will improve its user’s engagement, which helps it in selling high-value ads like its six-second commercials that it run in Discovery shows. The management saw a 20% year over year increase in ad pricing during the September quarter

The social media app has generated 52% year-over-year growth in ad revenues in the latest quarter while the user base grew 18% from the past year period. Its adjusted EBITDA came in at positive $56 million compared to a loss of $42 million in the year-ago period.

Besides the spotlight feature, the company says it is investing heavily in the discover platform, camera, and augmented reality to enhance user engagement.

“The adoption of augmented reality is happening faster than we had previously anticipated, and we are working together as a team to execute on the many opportunities in front of us,” said Evan Spiegel, CEO

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.