Snap reports 4% ad revenue growth and expands commerce formats

What changed

The company says Dynamic Product Ads for Sponsored Snaps are available globally and Third-Party Web Optimization is in open beta. It also reports auction-based Sponsored Snaps expanding in Europe and Promoted Places reaching 14 countries. These are distinct formats and availability statements; the earnings date is not necessarily each product’s original launch date.

Sponsored Snaps revenue increased 56% sequentially, while Spotlight eCPM increased 22% year on year. Those comparisons use different periods and should remain labelled. A platform-level revenue or price movement does not establish the return that an individual advertiser achieved.

Snap’s prepared remarks say paid subscriptions exceeded 30 million across Snapchat+, Memories Storage and Lens+. The figure is not a count for Snapchat+ alone. The company also plans to make monthly active users its primary audience metric from Q1 2027, which will change how future results are presented.

For advertisers, the useful follow-up is to compare the available commerce formats with the campaign’s objective, creative and measurement setup. A global availability statement for catalogue ads does not make every adjacent optimisation feature generally available. Preserve the distinction between a beta, a regional buying expansion and a company-wide financial result.

The financial and product details come from Snap’s release and prepared remarks. Andrew Hutchinson’s coverage is retained as reporting context. This article does not adopt the newsletter’s suggestion to replace Stories with a different format: the results alone do not establish that such a change would improve a particular account. Campaign decisions still require account-level evidence.