|
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
year.
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, eMarketer
projected.
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
Lewis)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
