Filter wars... 2020 was a big year for social. It was how we connected, doom-scrolled, entertained ourselves, and tapped our worries away. Now that Facebook and Snap have dropped full-year earnings, we have proof: they both crushed it — but Snap is still a small fish compared to Facebook (think: Nemo vs. blue whale). In 2020:
You ARPUnny... One number fascinated us: ARPU (aka, average revenue per user). ARPU = a company's sales divided by its users. The ARPU gap between Facebook and Snap is massive — especially in North America, which makes up nearly half of FB's sales, and more than 70% of Snap's. In North America:
Snap should augment itself (AR-style)... Snap is proud of its "privacy-first" approach, so it likely won't collect more data to try to beat FB. But it can boost ARPU by making ads more engaging. One key way it's doing that: Augmented Reality. Snap launched AR ads with companies like Estee Lauder and Dior, letting you virtually try on lipstick shades and shoes. These shoppable lenses have attracted new advertisers during the pandemic. Snap calls itself a "camera company," and it's leaning into this identity to stand out to brands. What Snap lacks in data, it could make up for with creativity.