Latest news with #JasmineEnberg
India.com
3 days ago
- Entertainment
- India.com
Rise of TikTok in US: How TikTok sparked short-form video race…and won
Rise of TikTok in US: How TikTok sparked short-form video race…and won The rise of TikTok in the US, which has over 1.12 billion monthly active users globally, not only pioneered the now-prevalent short-form video content, but also sparked a race in the sector. Advertisement Representational Image TikTok is arguably the most widely-used social app in the United States, with American users spending about 108 minutes on the app on average per day, according to various reports, The rise of TikTok, which has over 1.12 billion monthly active users globally, not only pioneered the now-prevalent short-form video content, but also sparked a race in the sector, which it seems to be winning by huge market. How TikTok pioneered short-form videos? TikTok's rise in the US due to its innovative use of short-form videos, reshaped the social media landscape across the world, forcing US giants like Meta and Google to jump into the race and launch their own versions of short-form video content, such as Instagram Reels and YouTube Shorts. Advertisement === But despite aggressive marketing and pouring in billions, TikTok's competitors lag behind, primarily because of the unique algorithm employed by the ByteDance-owned app, and its goal-oriented focus on youth and trending topics, as per experts. 'It is the center of the internet for young people. It's where they go for entertainment, news, trends, even shopping. TikTok sets the tone for everyone else,' a CNBC report quoted Jasmine Enberg, vice president and principal analyst at Emarketer, as saying. Advertisement === Notably, TikTok's main competitors, Instagram Reels and YouTube Shorts, have introduced new features such as creator tools for users, and are even considering launching separate apps, but have not been able to catch up to the Chinese-owned app. Why TikTok rise poses health concerns? However, the rising popularity of short-form video content driven by TikTok, has a vicious dark side with experts flagging rising mental-health concerns and shortened attention spans, especially among younger users. 'Infinite scrolling and short-form video are designed to capture your attention in short bursts,' says Dr. Yann Poncin, associate professor at the Child Study Center at Yale University, according to CNBC. 'In the past, entertainment was about taking you on a journey through a show or story. Now, it's about locking you in for just a few seconds, just enough to feed you the next thing the algorithm knows you'll like,' he notes.
RTÉ News
6 days ago
- Business
- RTÉ News
Snap's revenue growth slowest in over a year as competition, ad platform glitch hurt
Snap has reported its slowest quarterly growth in more than a year, hurt by a temporary glitch in its ad platform and advertiser preference for bigger rivals such as Meta, sending its shares down over 16% in extended trading. The Snapchat-parent said it had resolved the error that unintentionally allowed some ads to run at much lower prices. Snap faces tough competition from the likes of TikTok and Meta-owned Facebook and Instagram, with advertisers preferring the larger platforms as they curtail marketing budgets amid economic uncertainty. Rivals Meta and Reddit reported upbeatsecond quarter results last week. "The digital ad tailwinds that propelled Meta and Reddit to blowout quarters turned into a light breeze for Snap," said eMarketer principal analyst Jasmine Enberg. Under different circumstances, investors might have overlooked its ad platform misstep, but "there is little room for mistakes," she added. Snap's quarterly revenue was also impacted by the timing of Ramadan, which influenced ad spending patterns. The end of the "de minimis" exemption - a US duty-free import provision - also prompted some Chinese advertisers to reduce their marketing budgets. In April, ad revenue declined about 1% before "largely recovering" through May, and triggering the company to roll out Sponsored Snaps - a new video ads format that appears in user inboxes - more broadly in June, said CFO Derek Andersen. The company said its expanded roll-out of Sponsored Snaps across the US and several other global regions is driving more user actions and deeper engagement with ad content. The Santa Monica, California-based company reported second-quarter revenue of $1.34 billion, up around 8.7% from last year and largely in line with estimates, but lower than the double-digit growth it recorded in the last five quarters. Its net loss widened to $263 million from $249 million a year ago. Small and medium-sized businesses were the largest contributors to ad revenue growth and its subscription service Snapchat+ remained a key driver for diversifying revenue beyond ads. Snapchat+ subscribers rose 42% to nearly 16 million for the quarter ended June 30. Daily active users rose 9% to 469 million, compared with estimates of 467.9 million. The company forecast third-quarter revenue between $1.48 billion and $1.51 billion, compared with analysts' average estimate of $1.48 billion, according to data compiled by LSEG.
Bloomberg
6 days ago
- Business
- Bloomberg
Snap Investors Are 'Frustrated': Emarketer's Enberg
Snap investors aren't going to accept the company blaming macro conditions for ad sales troubles when competitors like Meta show strong results, says Emarketer VP and Principal Analyst Jasmine Enberg. She joins Caroline Hyde and Ed Ludlow on 'Bloomberg Tech.' (Source: Bloomberg)
Yahoo
7 days ago
- Business
- Yahoo
Snap earnings: Stalled growth isn't just from an 'ad glitch'
Snap Inc. (SNAP) stock is down double digits after reporting earnings, with the company saying an "ad glitch" weighed on sales. EMarketer vice president and principal analyst Jasmine Enberg says that while the glitch may have dragged down sales, Snap faces challenging fundamentals. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts. Snap shares plunging Wednesday after reposting its slowest quarterly growth in more than a year. The photo sharing app blamed a downturn partially on a glitch with its ad buying tools, as well as competition from bigger rivals. Joining me now is Jasmine Enberg, E-marketer, vice president and principal analyst. Jasmine, thanks for being here. Thanks so much for having me. So Snap talked a lot about this ad glitch, which basically allowed its advertisers to be charged less than they should have been. Um, and that that was part of the issue. But but talk to me about how you're thinking about Snap and how much of the issue that was. Yeah, so even before earnings I said that it wasn't looking good for Snap and it was less to do with economic uncertainty and the tariffs which of course Snap had warned about at the end of Q1 and more to do with sort of fundamental, uh, structural challenges within its business model and its ability to monetize in part due to some of the large competition that we're seeing in the market. And I certainly could not have predicted that there was going to be an ad glitch in Q2, but I think that again points to some of these challenges that it has in its business that are much longer term. As you know, Snap has been working to revamp its advertising platform for many quarters now. A lot of that work has been focused on its direct response advertising platform and I do think that perhaps in a different context investors might have been just a little bit more forgiving, although maybe not quite so much because they're rarely forgiving with Snap. But this work has taken much longer than many of them have anticipated. I think investors are getting impatient because the results have been inconsistent. So there's very little room for mistakes. And then if you bring in the broader context of Meta's and Reddit's blowout earnings for Q2, it really shows that it's hard for Snap to shift any or a lot of the blame to macroeconomic headwinds. It pointed to Ramadan and the removal of the de minimis tax exemption as other reasons for the deceleration and growth, um, when you have these two platforms that are very different sizes, very, um, different in terms of their importance to advertisers really performing well in Q2. And Jasmine, daily active users overall were up 9%, but there were some weakness in North America. Why is that happening? Yeah, well, that is extremely troubling to me because North America is Snap's core market. Um, it is where it has made most of its money. It's much harder for it to monetize in international markets. Now, on the call, uh, CEO Evan Spiegel talked about how daily active users is usually a measure of communication on the platform versus entertainment. Snap, as you know, of course is primarily a messaging app, but it also has a short form video feed. It's also focused heavily on creators. And so it seems that there's some weakness potentially there. Now Snap also spent a lot of time talking about sponsored snaps, really hyping them up. It's a new ad placement that they have, um, that will appear within the the chat tab, which is the core part of the Snapchat app. And they're hoping that they can kind of help to turn around, um, some of the the weakness in its ad business and they're already saying that that's, you know, given some incremental reach to advertisers as well as conversions. So they're really betting on the this communication, um, aspect of of the app. But again, the weakness in in North America is extremely troubling because it means that Snap is going to be more reliant on international markets going forward to drive growth if it can't bring that back up to growth. And Jasmine, if it is having these issues and it's fundamental business are glasses the answer, right? This, you know, like smart glasses? Is that something that's going to juice growth? Well, you know, AR overall has been such a core part of Snap's vision and its ambitions, and this isn't the first time it's introduced glasses or spectacles. Snap got a few questions on the call yesterday from investors, really asking whether they have the resources or the capital to even bring these devices to market next year as promised without a partner. You know, executives kind of sidestepped those questions. And you know, based historically, they haven't done very well, but there is a lot more momentum right now for smart glasses. I mean, we saw demand for meta ray bands, for example, um, grow last quarter and that could either help or or hurt Snap in this environment, really depending on what these glasses are when they when they come to market to consumers. Yes, we'll see how that all works out. Jasmine, thank you so much for your perspective. Appreciate it. Thanks so much for having me. 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The Hindu
06-08-2025
- Business
- The Hindu
Snap's revenue growth slowest in over a year as competition, ad platform glitch hurt
Snap on Tuesday reported its slowest quarterly growth in more than a year, hurt by a temporary glitch in its ad platform and advertiser preference for bigger rivals such as Meta, sending its shares down over 16% in extended trading. The Snapchat-parent said it had resolved the error that unintentionally allowed some ads to run at much lower prices. Snap faces tough competition from the likes of TikTok and Meta-owned Facebook and Instagram, with advertisers preferring the larger platforms as they curtail marketing budgets amid economic uncertainty. Rivals Meta and Reddit reported upbeat second quarter results last week. "The digital ad tailwinds that propelled Meta and Reddit to blowout quarters turned into a light breeze for Snap," said eMarketer principal analyst Jasmine Enberg. Under different circumstances, investors might have overlooked its ad platform misstep, but "there is little room for mistakes," she added. Snap's quarterly revenue was also impacted by the timing of Ramadan, which influenced ad spending patterns. The end of the "de minimis" exemption, a U.S. duty-free import provision, also prompted some Chinese advertisers to reduce their marketing budgets. In April, ad revenue declined about 1% before "largely recovering" through May, and triggering the company to roll out Sponsored Snaps, a new video ads format that appears in user inboxes, more broadly in June, said CFO Derek Andersen. The company said its expanded roll-out of Sponsored Snaps across the U.S. and several other global regions is driving more user actions and deeper engagement with ad content. The Santa Monica, California-based company reported second-quarter revenue of $1.34 billion, up around 8.7% from last year and largely in line with estimates, but lower than the double-digit growth it recorded in the last five quarters. Its net loss widened to $263 million from $249 million a year ago. Small and medium-sized businesses were the largest contributors to ad revenue growth and its subscription service Snapchat+ remained a key driver for diversifying revenue beyond ads. Snapchat+ subscribers rose 42% to nearly 16 million for the quarter ended June 30. Daily active users rose 9% to 469 million, compared with estimates of 467.9 million. The company forecast third-quarter revenue between $1.48 billion and $1.51 billion, compared with analysts' average estimate of $1.48 billion, according to data compiled by LSEG.
