Snapchat did see strong ARPU growth in North America, where it earned $3.75 per user, compared to Q4 last year, the highest-earning quarter, when its ARPU was $3.38. That’s still a distant runner-up to Facebook, which made $33.27 per user in North America last quarter.
Spiegel said the two biggest short-term priorities – its augmented reality technology and content investments – are both tied to improving user monetization.
Overall time spent per user is increasing but ad rates aren’t.
Gorman said the company has been “relentless” in its effort to demonstrate value to advertisers, including investing in tech such as its measurement pixel and self-serve ad platform. She said Snapchat will also invest more in B2B advertising, trade shows and earned media as the company makes its case to the ad industry that it can deliver hard-to-reach young audiences and ROI.
Snapchat’s reorg at the beginning of the year, when it reoriented its sales teams by industry vertical, is also paying dividends after a tumultuous start, Gorman said. The business can now strategically ramp up its sales and service by region and category as it adjusts to seasonal changes or elevated demand, such as during breaking news or live events.
Snap’s advertising reorg has been in place longest in the United States, Gorman said, which is why North American ARPU growth outpaced global rates.