| March 14
March 14 The 2017 advertising revenue forecast
for Snap Inc’s Snapchat has been trimmed by $30 million
due to higher than expected revenue sharing with its partners,
digital marketing firm eMarketer said in its latest ad spending
forecast on Tuesday.
While that still represents growth of more than 157 percent
from last year, it is smaller than eMarketer’s prior forecast in
September, which had predicted more than $800 million. Snap Inc
disclosed the revenue sharing details in its SEC filing ahead of
this month’s initial public offering.
Snap depends on advertising dollars for the bulk of its
overall revenue. The U.S. digital advertising market is expected
to reach $83 billion, an increase of nearly 16 percent from last
Following a surge in its stock price in its first two days
of public trading, when it traded as high as $27 a share on the
New York Stock Exchange, Snap's stock price tumbled in the
second week, and is now around $21 a share, as investor concerns
about slowing user growth and a lack of profit persist.
Facebook Inc's share of the U.S. digital ad market is
likely to increase to nearly 20 percent this year and Alphabet
Inc's Google will still command nearly 41 percent,
On the other end of the spectrum, eMarketer forecasts more
trouble for Twitter Inc, which has been grappling with
stagnant user growth. Its U.S. ad revenue will decline by 4.7
percent to $1.3 billion, and Twitter’s market share of the U.S.
digital ad market is expected to drop to 1.6 percent in 2017
from 1.9 percent last year.
(Reporting by Tim Baysinger in New York; Editing by Matthew