Snap Dangles Thousands in Free Ad Spend As Potential TikTok Ban Deadline Nears

Snap is offering advertisers money off ad campaigns as the U.S. inches closer to a third potential TikTok ban deadline, according to three media buyers who have been directly pitched these deals.

In recent weeks, Snap has pitched buyers several different ad credit packages, including offering the equivalent of an additional $10,000 in ad spend on the platform when they spend $50,000 on a campaign, according to one buyer. Another buyer was offered the $10,000 in ad credits if they spent an additional $100,000 on the platform. Another offer included a 20% credit to spend on Snap ads if the buyer moved $100,000 in campaign budget from other platforms.

One ad buyer said their Snap rep directly framed the incentive as a play to win dollars planned for TikTok.

“Snap is pretty aggressively trying to position itself as the biggest benefactor if something were to happen to TikTok,” another buyer said. 

All buyers, who spoke on the condition of anonymity to preserve industry relationships, said Snap has been more “aggressive” in offering ad credits tied to minimum spend commitments starting at $50,000. They added that this push underscores Snap’s efforts to carve out a bigger share of mobile video ad budgets, even as Meta and YouTube remain the dominant beneficiaries of TikTok’s regulatory uncertainty.

All three advertisers currently run ad campaigns on Snap. None are currently taking advantage of these offers, nor have increased budget with the platform, or moved budget from TikTok as a result of these offers.

Snap did not answer direct questions on whether it is offering ad credits or whether this push is to capture budgets earmarked for TikTok.

Spend going to Snap is growing

Snap is actively courting a share of the reallocated budgets, even though it historically commands a smaller portion of ad dollars, according to all buyers.

Analytics platform MikMak, which works with 2,000 brands and tracks $3 billion in U.S. digital ad spend, found that brands increased Snap spending by 33% from Q1 to Q2. Still, the platform accounts for less than 1% of overall spend compared to larger rivals, according to Tony Sloan, MikMak’s brand marketing lead.

In April, Snap reported $1.36 billion in revenue for Q1, beating Wall Street expectations and marking a 14% year-over-year increase. But the company withheld Q2 guidance, citing macroeconomic uncertainty. It also reported headwinds in ad sales during April and a decline of 1 million North American daily active users, per its letter to investors.

Snap said it has seen increased creator engagement on its platform, onboarded thousands of new creators in the last year, and expanded its creator marketplace.

The platform has also invested in generative AI tools, including sponsored AI lenses that let people insert themselves into brand-driven visuals. Snap said more than 300 million people use its AR lenses globally.

Per the platform, daily active users have increased by over 38 million year over year to 460 million as of Q1.

Billions in potential ad spend up for grabs

TikTok could face a U.S. ban for the third time on June 19 if it doesn’t find a new buyer. The platform could lose up to $32.4 billion in global ad revenue in 2025 if the U.S. proceeds with its ban, according to the World Advertising Research Centre.

Trump, however, is reportedly expected to sign a third executive order to stall enforcement once again, according to The Wall Street Journal.

TikTok has attracted interest from a dozen potential buyers, including Oracle, venture capital firm Andreessen Horowitz, AppLovin, and a consortium led by the founders of OnlyFans. 

The platform has also seen a wave of executive departures in recent months.