Snap SNAP recently partnered with ad tech firm, Tyroo to drive its ad monetization efforts in India. Although the terms of the deal were not disclosed, it is believed to be a revenue sharing arrangement between both the companies.
Reportedly, Snap is bringing filters, the Stories platform and its augmented reality driven Lens feature for advertisers. Per Geoffrey Reed, Snapchat's head of international expansion, the partnership will enable Snapchat to reach out to more advertisers in the country, thereby fueling growth in the Asia Pacific region.
Notably, the move comes at a crucial time for Snap, which has recently been battered by users over the redesign issues. Moreover, lackluster user and revenue growth seem to have forced the company to focus on India, the country where the CEO did not want to expand the Snapchat app earlier.
India Holds Potential
Of all places, India deserves special mention in terms of user growth. The world's second largest populated country offers tremendous potential. The number of mobile Internet users in the country, which has nearly 1.4 billion people, was 456 million in December 2017.
Per IAMAI report, given the availability of cheaper smartphones, faster connectivity and affordable services, the figure is estimated to reach 478 million by June 2018. This bodes well for Snapchat as the developed markets have reached maturity.
A burgeoning well-educated middle class, increasing spending power and rapid adoption of smartphones will boost Snapchat's prospects in the country.
Out of Snapchat's 199 million users, more than 9 million are from India, who spend an average of 30 minutes daily on the app.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Related Links:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
