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Snap’s AI-Driven Ad Innovations Face Growth Slowdown in Competitive Digital Market

Apr 29, 2025 (1 days ago)
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Snap Inc. is advancing AI-powered ad tools while navigating slowing growth amid intensifying competition.

Product Innovation & Strategic Moves

  • Launched **Sponsored AI Lenses** and **Snap Pixel** in April 2025, enabling personalized AR ads and conversion tracking, challenging competitors like Reddit.1
  • Snap Pixel helps advertisers measure website traffic, boosting ad effectiveness and user engagement.1

Financial Performance & User Growth

  • Q4 2024 revenue hit $1.56B with $9.1M net income, ending losses and signaling operational turnaround.2
  • Q1 2025 revenue expected to grow 12.7% YoY to $1.35B, with Europe revenue up 18% and Rest of World up 25.7% YoY.3
  • Daily Active Users (DAU) rose to 458.96M (+8.3% YoY), while North America ARPU increased to $7.99.3

Market Positioning & Growth Challenges

  • Annual revenue growth of 10.2% projected, outpacing the U.S. market but lagging industry peers, reflecting competitive pressures.2
  • Q1 revenue growth of 12.6% expected, down from 20.9% YoY in the same quarter last year, signaling potential momentum loss.4
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