Snap sees growth opportunity in SMBs

It looks like Snapchat’s hard efforts to win over small- to medium-sized businesses (SMBs) are finally starting to pay off.

The platform has been really focused on improving its direct response business, which includes expanding data partnerships, more ad products, simpler buying and automation tools, such as its recently announced AI-powered Smart budget optimization feature — effectively making Snap’s ad platform more accessible to the SMB category of advertisers.

“You can see Snap is [now] applying the playbook that has worked so well for the bigger ad platforms [Meta and Google],” said Jamie MacEwan, senior analyst at Enders Analysis. “It is still far behind [the bigger platforms] on revenues and [average revenue per user], so there is room for decent growth in SMB advertiser numbers and revenues if it gets the execution right.”

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