Snapchat is no longer just a quirky photo-sharing app—it’s becoming a serious player in India’s digital advertising space. In FY2024, its Indian subsidiary, Snap Camera India, crossed ₹100 crore in operating revenue for the first time, marking a 28.5% increase over the previous year. But beyond the numbers, this growth reflects Snapchat’s ability to tap into India’s massive Gen Z audience with cutting-edge AR tools and creator-first ad formats.
From Backlash to Boom
Snapchat’s rise in India hasn’t been smooth. Back in 2017, the company faced major backlash after CEO Evan Spiegel was allegedly quoted saying India was “too poor” for Snapchat’s premium model—a statement Snap Inc. firmly denied. The damage was done, though, and Indian users revolted by uninstalling the app and tanking its app store ratings.
Fast forward to 2024: Snapchat now boasts over 200 million monthly active users in India, with 90% of daily users between the ages of 13 and 34. What began as a PR disaster has since become one of the company’s most remarkable turnarounds.
A Creative Playground for Indian AR Developers
One of the key reasons behind Snapchat’s local success is its thriving AR ecosystem. In fact, Indian creators now publish more AR lenses on the platform than any other country, according to Snap CTO Bobby Murphy. This wave of homegrown creativity is helping brands engage users in more playful and memorable ways.
The Ad Formats Fueling Growth
Snapchat’s recent revenue surge is largely driven by its unique advertising offerings, which are tailored to the platform’s fast, immersive, and mobile-first experience. Here are a few formats leading the charge:
🔹 AR Lenses & Filters
Still Snapchat’s signature feature, AR Lenses are used by over 70% of new users on Day 1, with overall usage up 49% year-over-year in Q4. As Manika Juneja (Managing Partner, Dentsu Creative Isobar) puts it, “AR-driven lenses are unbeatable for brand interaction.”
🔹 Sponsored Snaps
Recently launched in India, this format delivers full-screen video ads directly into users’ chat inboxes. AJIO was the first Indian brand to try it, targeting Snapchat’s digitally native audience. Music brand campaigns like Oreo x Post Malone, and film promotions for Wicked and Moana 2, have also tapped into this immersive format.
Shradha Agarwal, Co-founder & Global CEO at Grapes Worldwide, describes Sponsored Snaps as a “single-placement solution” that spans brand awareness to conversion.
🔹 AI Video Lenses
Exclusively for Platinum subscribers (for now), these new lenses blend AR with generative AI to create surreal video experiences—like turning into a raccoon or a flower. It’s experimental, but hints at Snapchat’s innovation roadmap.
Why Brands Are Paying Attention
Snapchat’s value proposition lies in its distinctive identity among social platforms. Juneja describes it best:
“Snapchat is a burst of cotton candy—quick, fun, and disappears fast—perfect for snappy engagement and AR-driven buzz.”
Unlike Instagram (built for sharing and shopping) or YouTube (great for storytelling), Snapchat leans into ephemeral, creator-led content that resonates with Gen Z’s taste for spontaneity.
Snap’s growing creator ecosystem—up 50% year-on-year—also fuels its appeal. According to internal research, creator-led ads hold attention 12% longer than standard ads, and boost brand trust when paired with product placements.
The Roadblocks Ahead
Snapchat’s path to becoming a mainstream ad channel still has challenges. While its engagement and swipe-up rates are impressive, direct conversions still favor Meta’s platforms.
Juneja points out what Snapchat needs to improve:
- Stronger attribution models
- Better e-commerce integrations
- Deeper audience insights
With expenses rising 28.7% and advertising spend jumping 37% in FY24, Snapchat is clearly investing in scale. But to convince performance-driven advertisers, it needs to close the measurement gap.
Betting on the Future
Despite the hurdles, Snapchat is doubling down on India. In 2024, it promoted APAC President Ajit Mohan to Chief Business Officer, a clear signal of India’s strategic importance.
It has also expanded its Agency Partner Program to better serve independent media and performance shops. And with the number of active advertisers more than doubling in Q4 2024, it’s no longer just a Gen Z niche—it’s gunning for the mainstream.
As Agarwal notes, “Snapchat is one of the fastest-growing social media platforms in the country. Brands are using it not just for visibility, but to foster deeper connections with the audience.”
What Marketers Should Do Next
If you’re a brand looking to explore Snapchat, don’t just repost Instagram content. Juneja advises:
“Go native. Think AR, creator-led storytelling, and dynamic formats designed specifically for Gen Z.”
India’s digital ad space is growing at a 20.22% CAGR, with social media already making up 29% of digital ad spends, according to Dentsu’s latest report. Snapchat is well-positioned to capture a bigger piece of that pie—especially as the next generation of consumers shapes the market.
For advertisers, the platform offers more than reach—it offers cultural relevance. The challenge now is using it right.
