Social Shorts: Snapchat’s rising ARPU, Facebook’s moves on Nextdoor, Instagram’s age controls

Snapchat’s North America ARPU shoots up

Snapchat reported revenues increased 52% year-over-year to $679 million and average daily active users (DAUs) increased by 18% year-over-year to $249 million for the third quarter of the year. One stat that stood out to us in particular was the average revenue per user (ARPU) in North America. Overall ARPU increased 28% to $2.73, yet in North America, that number shot up $46% to $5.49.

Why we care. Snapchat CEO Evan Spiegel said the company is making long-term investments in its community and advertising efforts. The chart above from the company’s third-quarter earnings slides indicates the company is seeing those efforts pay off, literally.

Additionally, AR will continue to be a big focus for Snapchat. “The adoption of augmented reality is happening faster than we had previously anticipated, and we are working together as a team to execute on the many opportunities in front of us,” Spiegel said in a statement.

The company has partnered with Champs Sports, Clearly, Essie, Hoka One One, Kohl’s, Levi’s, Jordan Brand, and Sally Hansen to launch augmented reality-powered virtual try-on experiences on the platform.

Facebook makes moves into Nextdoor’s neighborhood

Facebook confirmed it is testing “Neighborhoods” in Canada — Calgary, specifically, Bloomberg reported Wednesday. “More than ever, people are using Facebook to participate in their local communities,” Facebook said in a statement to Bloomberg. “To help make it easier to do this, we are rolling out a limited test of Neighborhoods, a dedicated space within Facebook for people to connect with their neighbors.”

Why we care. Antitrust, anti-shmust. Moving into or copying rival territory is nothing new for Facebook. Nextdoor has built an entire social networking product around neighborhood connections, and as Bloomberg notes, it is looking at an IPO.

Nextdoor has expanded its advertising business beyond realtors and now includes options for local businesses as well as for national brands. If the pilot expands, Facebook’s Neighborhoods could make it much harder for Nextdoor to compete for marketing dollars.

Consumer preferences for social media ads formats vary by country  

When asked what type of social media ad are they most open to receiving, the most popular response was video (34%) followed by carousels (22%). The survey, conducted by Smartly.io, also found that messaging apps or chatbots were the least popular among consumers.

Why we care. These findings are a good reminder of why it’s important to mix up your ad formats, particularly if you’re advertising in multiple markets. And yet, we markets know that what consumers say they prefer is not always reflected in actual performance. “For optimal results, balance consumer preferences with platform usage habits to inform ad creatives,” says Smartly.io.

New post-level minimum age controls for Instagram branded content

Instagram is giving brands more control over age gates for branded content on the platform, AdWeek first reported. “Businesses and creators can now set a minimum age for their branded content feed posts on Instagram. They can set a default minimum age or a minimum age for specific countries, or a combination of both,” Instagram said last week. 

Why we care. This granular control will help brands stay in line with regulatory age requirements and keep their content focused on age-appropriate audiences. Not to mention, it’s good brand safety practice.