Snapchat’s making another push on Snapchat+ subscriptions this holiday season, by partnering with Amazon, Walmart and Target to sell Snapchat+ gift cards in store and online.
Which, if last year is anything to go on, will help to boost Snapchat+ subscriptions once again this Christmas.
As per Snap:
“As we approach the holidays, annual Snapchat+ subscriptions are now available for purchase at Target stores across the US, and online and via Amazon and Walmart. Gift cards are easy to redeem right away at snapchat.com/plus. With Snapchat+, Snapchatters can unlock so many fun ways to personalize their app with custom chat wallpapers, seasonal app icons, Bitmoji pets, and more! It’s the gift that keeps on giving all year long.”
And while those additions won’t appeal to everyone, they have been a hit with millions of Snapchat users, and you can bet that many young teens will be keen to find a Snap gift card under the Christmas tree this year, so that they can customize their in-app presence like their friends.
Snapchat made the same push last year, launching Snapchat+ gift cards via Amazon only. Yet, even with just one retail partner, that still saw Snapchat+ memberships rise from 5 million in September, to 7 million by end of Q4, meaning that its subscriber base rose by some 40% in the period.
I mean, that growth wouldn’t be 100% attributable to Snapchat+ gift cards, but they no doubt played a significant part. As such, the expansion to physical stores, and a lot more outlets, should help Snap boost Snapchat+ memberships once again this year.
Snapchat+, which is now up to 12 million total members, has become a handy supplementary income stream for the app, as it continues to re-shape its revenue intake. Snapchat still generates more than 90% of its revenue from ads, so it’s not a major stream overall. But as the company continues to invest in new technologies, like AR glasses, the extra money that Snapchat+ is bringing in is a good complement to its ad business.
It’s also a great example of Snapchat’s audience nous, and its understanding of what its users actually want.
For comparison, X Premium, which was launched around the same time, and to much more fanfare, has struggled to reach even 1.3 million sign-ups, with users not being as enticed by the option to buy blue checkmarks as Elon and Co. had hoped.
Because X’s add-on features don’t align with how the majority of people actually use the app. Snapchat’s add-ons for Snapchat+ however, do, which is why it’s seen significantly more take-up of its paid option.
And that looks set to continue to rise in 2025.
Again, it’s unlikely to ever become a major revenue stream, by comparison to its ad business, but it’s a valuable driver of supplemental income for the app.
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