Snapchat’s recent switch to premium subscriptions has picked up some traction in its first few weeks on the market. Although the social app maker just last week reported a disappointing second quarter, with no profit amid a weak advertising landscape, its brand-new Snapchat+ subscription plan has already helped the app generate over $5 million in revenue in its first month, according to new estimates.
The number is a huge jump over the five-digit revenue figure from in-app purchases Snapchat was seeing before the subscription launch. What’s more, the number is already larger than Twitter’s in-app revenue, which has totaled nearly $4 million since Twitter Blue launched in June 2021, according to data from app market research firm Sensor Tower.
Launched on June 29, 2022, the Snapchat+ paid consumer subscription gives users access to various premium features while giving the company an important opportunity to diversify its revenue streams beyond advertising. This is critical for the social app as the ad market is currently being impacted by broader macroeconomic forces that have been slowing demand. Additionally, Snapchat continues to feel the impact of Apple’s privacy changes in 2021, which allowed users to opt out of tracking, and faces increased competition from rival TikTok.
For $3.99 per month, Snapchat+ subscription allows dedicated app users to see who’s re-viewed their stories, change their app icon, tag another user as #1 Best Friend, preview features to try and much more. Earlier this month, the company also made internet access a part of Snapchat+ subscriptions.
Since the subscription launch, Snapchat’s mobile app has generated approximately $7.3 million in consumer spend across iOS and Android, according to Sensor Tower provided to TechCrunch. This represents the first 30 days of Snapchat+’s availability, from June 29, 2022 to July 26, 2022, according to the company’s notes. The figure is also about 116 times higher than the $63,000 the app made through in-app purchases in the 30 days from May 30, 2022 to June 28, 2022, suggesting that the Most of the new revenue came from Snapchat+.
Currently, Snapchat offers a few other in-app purchases for things like geofilters and tokens, depending on the App Store listing. But as of this writing, the app’s top three in-app purchases were all tiers of Snapchat+, Sensor Tower said. The $3.99 monthly plan was at the top, followed by the 12-month and 6-month subscriptions at $39.99 and $21.99, respectively.
For all time, Sensor Tower estimates that Snapchat’s app has generated approximately $27.7 million in consumer spending worldwide.
Of course, in-app mobile spend is only a small fraction of how a company like Snap makes money. The company had $1.11 billion in revenue in Q2 2022, almost entirely from its advertising products, including Snap Ads and AR Ads (like Sponsored Filters and Sponsored Lenses). The company also sells hardware products like its Spectacles eyewear and new Pixy drone, but these aren’t having a significant impact on its sales right now.
Without first-party data, it’s not possible to accurately compare how Snapchat+ is performing against other social app subscriptions that target power users, like Twitter Blue. Target demographics differ, and Twitter offers a variety of other in-app purchases — such as those associated with Super Follows (Creator Subscriptions) and Live Audio Spaces. Snapchat also offers other in-app purchases. However, Sensor Tower reports that the app saw only around $9,000 in in-app spend in the first 30 days of Twitter Blue. That comparison is a little unfair, however, as the subscription was limited to select markets at launch.
Despite this, Twitter Blue doesn’t seem to have proven to be a big winner just yet. The Twitter app has seen nearly $4 million in global App Store and Google Play spend since the launch of Twitter Blue on June 3, 2021, Sensor Tower estimates. The bulk of that spend ($3.4 million) is on iOS. This suggests that Snapchat+’s first month may have already surpassed Twitter Blue’s lifetime earnings. (Snap declined to comment on Sensor Tower’s estimates.)
Sensor Tower analysts suggest that Snapchat+ could perform better because of Snapchat’s power users.
The app, along with Instagram, has the highest percentage of power users in the US in Q2 2022. That means Snapchat and Instagram saw 34% of their active installs open the app every day in Q2. This compares to Facebook (31%), TikTok (23%) and Twitter (19%).