$3.2 billion revenue opportunity
By the end of 2021, India’s digital advertising market could be worth about $3.2 billion from an estimated $1.5 billion in 2018, according to Zenith Media. Snap (SNAP) is one of the companies pursuing this revenue opportunity. Snap generated $825 million in revenue in India in 2018. A big break in India’s advertising market could lead to a huge boost to the company’s financial performance.
Last May, Snap partnered with Tyroo, an India-based advertising technology provider, to help it reach more advertising clients in the country. In October last year, Snap appointed former Twitter executive Raheel Khursheed to lead its India operations, the Economic Times reported.
Snap launches localized Discover in India
About a month after the appointment of the India head, Snap launched a localized version of the Discover feature in India. Snapchat Discover features content from media publishers. It launched in India with about a dozen publisher partners, India Today reported.
It’s a tight race
Snap is up against many competitors in its pursuit of advertising revenue in India. Facebook (FB) and Google (GOOGL), for instance, have a big presence in India’s digital economy and they too have their sight on the country’s digital advertising expenditures. Facebook, for instance, runs several social networks in India, making it one of the most popular destinations for marketers seeking to connect with consumers in India. Twitter (TWTR), which has created a lightweight app specifically for developing countries like India, is also in the race for advertising revenue in the country. E-commerce companies like Amazon (AMZN) are also leveraging the popularity of their online marketplaces to capture ad dollars in India, particularly ad spending by consumer brands.