Snapchat+ continues its impressive growth trajectory, reaching a significant milestone in terms of revenue generated within the app. Recent data reveals that Snapchat’s premium subscription offering, Snapchat+, has recorded its highest in-app revenue to date, surpassing $20 million in net revenue (after deducting app store fees) in the month of November. This achievement demonstrates the strong demand for the subscription among Snapchat’s younger user base who are willing to pay for the added benefits and features of Snapchat+.
Key Takeaway
Snapchat+ has generated over $20 million in net revenue for the first time, indicating its significant growth and popularity among Snapchat’s younger users.
The Allure of Snapchat+
Snapchat’s premium subscription, Snapchat+, offers a range of enhanced features and perks to its subscribers. These include tools to enhance stories, pin a Best Friend, change the app icon, and gain early access to new features, such as new AI capabilities. The appeal of these additional offerings has translated into significant growth for Snapchat+. In fact, the subscription product has outperformed X Premium (previously known as Twitter Blue), a similar offering, by a wide margin. While X Premium recorded its highest month of in-app revenue with $6.2 million in consumer spending, Snapchat+ generated more than triple that amount.
The popularity of Snapchat+ is further exemplified by Snap’s announcement in September that the subscription had surpassed 5 million subscribers, reflecting steady growth from 3 million in mid-April and 4 million in late June. The introduction of exclusive early access features, including the My AI chatbot and the Dreams generative AI selfie feature, has contributed to the sustained demand for Snapchat+. The My AI chatbot alone has facilitated over 20 billion messages, as disclosed by Snap during its Q3 earnings report.
Strong Growth and Global Reach
Apptopia, an app intelligence provider, reveals that Snapchat+ continues to attract new subscribers, recording a month-over-month increase of 23.4% in consumer spending in November compared to the previous month. Although this was not the largest percentage increase, it resulted in the second-highest absolute revenue growth. Notably, the top markets driving consumer spending on the subscription are the U.S., U.K., France, Australia, and Canada. The U.S. led the pack with $1.8 million in net revenue, followed by the U.K., France, Australia, and Canada, each generating over $1 million in revenue.
Furthermore, Snapchat+ is gaining traction in unexpected regions, such as Saudi Arabia, which ranks as the seventh-largest market based on consumer spending. This unexpected success underscores the global appeal of the premium subscription.
It is worth noting that the reported revenue figures do not account for Snapchat+ subscriptions purchased through Amazon gift cards, a payment method introduced for U.S. users. As this spending occurs outside of the app stores, it is not captured by Apptopia’s estimates. Consequently, the actual revenue generated by Snapchat+ may be even higher than presently projected.
Overall, Snapchat+ has demonstrated impressive growth and financial success, attracting a substantial number of subscribers who value the enhanced features and benefits it offers. With its expanding reach and further innovations on the horizon, Snapchat+ is poised to maintain its upward trajectory in the premium subscription space within the Snapchat ecosystem.
