Snap Inc., the parent company of Snapchat, has announced the promotion of Ajit Mohan to the role of Chief Business Officer (CBO). In this capacity, Mohan will oversee the expansion of Snap’s advertising business globally and lead the company’s revenue product and business operations teams.
Ajit Mohan’s Professional Trajectory
Ajit Mohan joined Snap in February 2023 as the President of the Asia-Pacific (APAC) region. During his tenure, he significantly enhanced Snap’s presence and business across APAC. Before his role at Snap, Mohan served as the Vice President and Managing Director of Meta India (formerly Facebook India) for nearly four years. Prior to that, he was the Chief Executive Officer of Hotstar, where he played a pivotal role in establishing it as India’s leading premium video streaming platform.
Strategic Implications for Snap
Mohan’s elevation to CBO comes at a critical juncture for Snap, as the company aims to bolster its advertising revenue and strengthen its market position against competitors like Meta Platforms and ByteDance’s TikTok. In the quarter ending December 31, 2024, Snap reported a 14% year-over-year increase in revenue, reaching $1.56 billion. This growth was partly attributed to new advertising formats that attracted small and medium-sized marketers.
Snap is also set to introduce new ad features, including ‘Sponsored Snaps’ and ‘Promoted Places’, in additional countries. The company plans to test features that encourage direct purchases from ads, signaling a strategic move to enhance its e-commerce capabilities.
Ajit Mohan’s Vision
With a career spanning over two decades in the technology and media sectors, Mohan brings a wealth of experience to his new role. His leadership is expected to drive innovation in advertising formats and foster stronger industry partnerships, further solidifying Snap’s position in the global market.
As CBO, Mohan will focus on aligning Snap’s revenue product and business operations teams to better serve advertising partners, ensuring cohesive strategies across all regions. His appointment reflects Snap’s commitment to leveraging seasoned leadership to navigate the evolving digital advertising landscape.
Snap’s Financial Performance and Market Position
In the fourth quarter of 2024, Snap reported a 14% increase in revenue, totaling $1.56 billion, slightly surpassing analyst expectations. The company also achieved a net income of $9 million, a significant turnaround from a $248 million loss in the same period the previous year. Daily active users grew by 9% to 453 million, indicating sustained user engagement.
Despite these positive indicators, Snap faces challenges in maintaining its growth trajectory amid stiff competition and evolving market dynamics. The company’s strategic initiatives, including the introduction of new advertising formats and a focus on direct response ads, aim to attract a broader range of advertisers and enhance revenue streams.
Industry Context and Future Outlook
The digital advertising landscape is becoming increasingly competitive, with platforms like TikTok and Instagram vying for advertisers’ attention. Snap’s emphasis on innovative ad formats and augmented reality experiences seeks to differentiate it from competitors. The appointment of Ajit Mohan as CBO underscores Snap’s commitment to strengthening its leadership team to navigate these challenges and capitalize on emerging opportunities.
As Snap continues to evolve its platform and advertising offerings, the company’s leadership changes and strategic initiatives will be closely watched by industry analysts and investors. The effectiveness of these efforts will play a crucial role in determining Snap’s ability to sustain growth and enhance its position in the global digital advertising market.
In summary, Ajit Mohan’s promotion to Chief Business Officer marks a significant step for Snap Inc. as it seeks to expand its global advertising business and enhance its competitive edge in the social media industry.