David Bridges
Snapchat is ramping up its efforts to promote Snapchat+ subscriptions this holiday season by collaborating with major retailers like Amazon, Walmart, and Target to offer Snapchat+ gift cards both in physical stores and online platforms.
Based on last year’s performance, this strategic move is expected to significantly enhance Snapchat+ subscription rates during the Christmas shopping season, making it easier for users to purchase and gift these subscriptions.
According to Snap Inc.:
“As we approach the holiday season, annual Snapchat+ subscriptions are now available for purchase at Target stores throughout the US, as well as online through Amazon and Walmart. These gift cards can be redeemed instantly at snapchat.com/plus. With Snapchat+, users can enjoy a plethora of exciting features to personalize their app experience, such as custom chat wallpapers, festive app icons, Bitmoji pets, and much more! It’s truly a gift that adds joy throughout the year.”
While not every feature may appeal to all users, the Snapchat+ offerings have certainly resonated with millions of users, particularly among younger audiences. Many teenagers are likely looking forward to unwrapping a Snapchat gift card this Christmas, as it allows them to enhance their digital identity and customize their in-app interactions to align with their friends.
Last year, Snapchat pursued a similar strategy, launching Snapchat+ gift cards exclusively through Amazon. Despite having just one retail partner, this initiative led to a remarkable increase in Snapchat+ subscriptions, soaring from 5 million in September to 7 million by the end of Q4. This translates to an impressive growth rate of about 40% in just a few months.
Although it’s essential to note that attributing this growth solely to the Snapchat+ gift cards would be inaccurate, they undoubtedly played a crucial role. Therefore, expanding the availability of these gift cards to physical retailers and additional online platforms is expected to drive further increases in Snapchat+ memberships this year.
Snapchat+, which now boasts a total of 12 million subscribers, has become an important supplementary income stream for the platform, complementing its primary revenue model. While Snapchat still relies heavily on advertising, generating over 90% of its revenue from ads, the additional income from Snapchat+ subscriptions enhances its financial stability.As Snapchat continues to invest in innovative technologies, such as AR glasses, the revenue from Snapchat+ serves as a valuable support to its advertising business.
This strategy also underscores Snapchat’s keen understanding of its audience and its ability to align offerings with user interests and desires.
In contrast, X Premium, which launched around the same time with much more fanfare, has struggled to gain traction, managing to attract only 1.3 million sign-ups, suggesting that users are not as captivated by the option to purchase blue checkmarks as its creators had anticipated.
Given that the features offered by X’s premium service do not resonate with how most users engage with the app, it’s understandable why adoption has been sluggish. In contrast, Snapchat’s add-ons for Snapchat+ align closely with user preferences, leading to a much higher uptake of its paid subscription service.
Looking ahead, it seems that the number of Snapchat+ subscribers will continue to rise into 2025, driven by the ongoing popularity of its features and the strategic retail partnerships.
While it may not ever rival the advertising revenue generated by the platform, Snapchat+ represents a significant opportunity for generating supplemental income that supports the app’s overall growth and sustainability.
Cameron Steel
