Snapchat says its Spotlight section, its feature that rivals TikTok, hit 125 million monthly viewers in March, up from 100 million in the prior quarter, as the messaging app released first-quarter results on Thursday.
Snapchat showed strong users and revenue growth all around, reaching 280 million daily users, an increase of 22% year-over-year. The Spotlight section is the curated feed of viral videos, mostly posted by popular creators, who participate in the program, which pays out $1 million a day split among the top performers.
Snapchat also showed that ad revenue growth remains robust, up 66% from the same quarter last year to $770 million. In its earnings release, Snapchat touted major ad campaigns with brands like North Face, Gucci, American Eagle and Sweat.
Snapchat also discussed a new ad partnership with Gannett, which it struck in March, for the publisher to help expand the app’s reach to more local businesses. Gannett’s sales force is being trained to promote Snapchat advertising to more than 100,000 small businesses around the U.S. and Canada.
Snapchat has been grabbing a larger piece of advertiser budgets in recent years as brands have been looking for new ways to reach younger audiences and adopt the latest technology like augmented reality and e-commerce ads.
Snapchat has been investing in its Lenses, which are part of the augmented reality playbook. Brands are creating products that consumers can view through the Snap app in a virtual way.
Gucci and North Face collaborated on one such program last quarter, creating a Snap Lens that projected a 3D image of a camping site, for a special-edition tent designed in collaboration by both brands.
Snapchat also is developing its video ad products with new destinations like Spotlight, and it also has Discover still, where premium media brands and creators develops shows. Snapchat said that one show by actor Ryan Reynolds, “Ryan Doesn’t Know,” drew more than 20 million viewers.
In its report, Snapchat also predicted the company would hit up to $840 million in revenue in the second quarter, up from $454 million in the second quarter of 2020.
