Today, Snap reported our Q1 2024 Earnings, where we shared that we grew revenue 21% year-over-year to reach $1.195 billion.
This was largely driven by the improvements we’ve been making to our ad platform, and increased demand for our direct-response (DR) solutions. We remain focused on investing in our DR business to deliver measurable Return on Ad Spend (ROAS) for our advertising partners, and we are also continuing to evolve our Machine Learning models to improve in this area.
Here are more details about the progress we’re seeing.
New Categories for Pixel Purchase
In Q1, ongoing momentum with our 7-0 Pixel Purchase optimization model led to a more than 75% increase in purchase-related conversions year-over-year. We expanded this model to new categories like app install and app purchase, and will expand testing of additional app goals in Q2 including Value Optimization and Custom Event Optimization. We are encouraged that these improvements are driving results for advertisers.
Improved Conversions API
In Q1, we launched a new and improved version of our privacy-centric first-party signal solution Conversions API (CAPI) which enables new identifiers and parameters for unlocking dynamic retail ads and improved support for ROAS optimizations. Our improvements to CAPI, improved collaboration with advertisers, and growth in partner integrations has resulted in CAPI integrations growing approximately 300% year-over-year in Q1.
SMB Progress
We also remain excited by the progress we’re seeing with our small- and medium-sized advertising partners. Today, small- and medium-sized businesses and creators alike can promote their services, content or products, reach new audiences, and gain more followers, all with just a few taps within the Snapchat application. This has been instrumental in significantly accelerating the number of SMB advertisers on Snapchat, growing 85% year-over-year.
New Campaign Setup Tools
In addition, we launched useful tools such as dynamic campaign setup recommendations and codeless Pixel setups to help businesses achieve higher ROAS. We are seeing strong results from businesses of all sizes.
Brand Safety
Finally, we are committed to providing a brand-safe experience for our community and partners. In Q1, we announced a partnership with Integral Ad Science, IAS, to jointly develop a new brand safety third-party measurement product. In the study results, IAS found that both Spotlight and Creator content on Snapchat is 99% brand-safe.
Please see our Investor Letter for additional commentary from Snap management and stay tuned for future updates!