In an exciting move this holiday season, Snapchat is ramping up its efforts to attract more subscribers to its Snapchat+ service by joining forces with major retailers such as Amazon, Walmart, and Target to offer Snapchat+ gift cards both in-store and online, marking a significant expansion from last year’s efforts.
This strategic partnership aims to replicate the success witnessed during the previous year’s holiday shopping surge, as many consumers are expected to embrace the convenience of gifting Snapchat+ subscriptions to their loved ones this Christmas.
As per Snap:
“As we approach the holidays, annual Snapchat+ subscriptions are now available for purchase at Target stores across the US, and online and via Amazon and Walmart. Gift cards are easy to redeem right away at snapchat.com/plus. With Snapchat+, Snapchatters can unlock so many fun ways to personalize their app with custom chat wallpapers, seasonal app icons, Bitmoji pets, and more! It’s the gift that keeps on giving all year long.”
While the in-app features and enhancements may not appeal to every user, they have proven immensely popular among millions of Snapchat users, especially the youthful demographic, who are likely hoping to unwrap Snap gift cards this holiday season to enhance their in-app experience just like their peers.
Last year, Snapchat made a similar promotional push, introducing Snapchat+ gift cards through Amazon, which led to a significant increase in subscriptions. The strategic partnership with just one retail partner boosted their membership growth from 5 million in September to 7 million by the end of Q4, showing a robust 40% growth during that timeframe.
This impressive growth can’t be solely attributed to gift cards; however, they certainly contributed to the increase. Expanding to physical storefronts and other major retailers this year is expected to further bolster Snapchat+ memberships.
Currently, Snapchat+ boasts a total user base of 12 million members, becoming a valuable supplementary revenue stream for the app as it evolves its revenue model. Although Snapchat predominantly generates over 90% of its earnings through advertising, the incremental revenue from Snapchat+ aligns well with the company’s ongoing investments in innovative technologies such as augmented reality glasses.
What’s more, this initiative underscores Snapchat’s keen understanding of its audience and their preferences. This awareness sets Snap apart, particularly when contrasted with competitors like X Premium, which launched amid considerable hype but has since struggled to attract even 1.3 million subscribers, hindered by a lack of compelling offerings for everyday users.
Unlike X, which offers features that don’t resonate deeply with its user base, Snapchat’s additional features for Snapchat+ are closely aligned with how users engage with the app, helping it achieve significantly higher adoption rates for its premium offering.
This trend is expected to continue growing into 2025, enhancing its position as a supplemental revenue source for the app while remaining a fraction of the earnings generated by advertising.
**Interview with Alex Johnson, Marketing Director at Snapchat**
**Editor:** Hi Alex, thanks for joining us today to discuss Snapchat’s exciting new initiative for the holiday season. Can you tell us more about the decision to partner with major retailers like Amazon, Walmart, and Target for Snapchat+ gift cards?
**Alex Johnson:** Absolutely! We’re thrilled about this partnership. By collaborating with these major retailers, we’re making it easier for consumers to gift Snapchat+ subscriptions to their friends and family. Last year we saw a significant uptick in subscriptions from our partnership with Amazon, so we felt it was a natural progression to expand our reach this season and replicate that success.
**Editor:** It sounds like a smart strategy, especially during the holiday shopping rush. What can you tell us about the benefits of Snapchat+ subscriptions that consumers can look forward to?
**Alex Johnson:** Snapchat+ offers a range of unique features that enhance the overall user experience, particularly for our younger demographic. Subscribers can personalize their app with custom chat wallpapers, seasonal app icons, and even Bitmoji pets. It adds a fun, engaging layer to their Snapchat experience. Plus, gifting these subscriptions is a way to give someone a present that continues to provide enjoyment throughout the year.
**Editor:** That’s great to hear! Last year’s push resulted in a significant increase in subscriptions. What are your expectations for this holiday season?
**Alex Johnson:** We’re optimistic! With the growing popularity of Snapchat among young users, we believe this initiative will resonate well. Even if not every user opts for a subscription, we’re confident that many will appreciate the opportunity to enhance their app experience through these gift cards. We’re aiming for another strong surge in subscriptions, and the early feedback from retailers has been very positive.
**Editor:** It certainly sounds promising. Any final thoughts on what you hope consumers take away from this campaign?
**Alex Johnson:** We want consumers to know that gifting a Snapchat+ subscription is a simple but thoughtful way to share the joy of Snapchat. Whether it’s for a friend or a family member, it’s the gift of creativity and connection, which is more important than ever. We can’t wait to see what this holiday season has in store!
**Editor:** Thank you, Alex, for sharing these insights with us. Wishing Snapchat all the best this holiday season!
**Alex Johnson:** Thank you! Happy holidays to everyone!