Wurmser estimates Snap’s U.S. ad revenue to fall to $2.08 billion, down by 1.8% this year. In contrast, TikTok is expected to grow 23.1% to $6.19 billion.

Luring more ad dollars

Despite being among the first to launch a generative AI chatbot, Snap’s My AI, which started testing sponsored links in May, hasn’t managed to lure advertisers to spend on the platform, some buyers told Adweek.

“Our media spend ranges between 2-10% on Snap,” said Constantine. “Currently, it’s on the low end and definitely hasn’t increased since My AI was launched.”

For ad agency Collective Measures, up to 20% of the annual media budget goes to Snap’s in-feed ads or Stories, specifically for clients whose audience utilizes the Snap platform, according to Theresa Swiggum, media director, of Collective Measures. However, most of the agency’s brand partners aren’t looking into My AI’s sponsored ads yet.

“Snapchat is never going to be the top social media platform in terms of time spent or overall reach,” said Swiggum.