Advertiser sentiments towards Snapchat ads are still wary, and as a result many brands continue to focus their budgets in Facebook and Google products. For sharp advertisers, this presents opportunity, and that is particularly true for those companies and brands aiming to reach a demographic under the age of 30. Snapchat ads provide the right tools to drive effective reach, very affordable impressions, and ultimately a return on investment that can rival those of Facebook and Google. Here’s why:
1. Snapchat is essentially following the playbook that Facebook did, and learning from their wins
- Snapchat has the benefit of Facebook’s initial grunt work on their advertising platform – the system that Facebook created is about the most advanced and high performing advertising platform ever created. If Snapchat follows their playbook they can achieve some of the same progress at a faster pace (remember, back in year one of FB advertising many people were still mostly buying “likes”…).
- Audience Lookalike Modeling / check
- Datalogix and other third party audience data / check
- Pixel Tracking and optimization / check
- SDK optimization and tracking / I’m sure it’ll be here soon 🙂
2. CPMs are low
- We’ve seen average CPMs below $3, consistently, even on highly targeted audience segments. This is a stark contrast to granular FB segments where CPMs can be as high as $15 on average. Yes, this is due to competition on the platform and a reflection of many advertisers bidding for a user who is likely to convert/click/perform some level of action.
- This will increase as (or, if/when) more advertisers bring budget to the platform.
- Now’s the time to take advantage!
3. Reach New Users
- Whether you like it or not, sooner or later you will see diminishing returns in your marketing spend on FB, IG, Adwords, or any other platform that you are running. You will exhaust your top performing audience and find diminishing returns to CTR, CPA, & ROI as you broaden to extend reach and acquire new customers. New creative can’t reduce audience fatigue forever – expanding to a new platform with new exclusive users can help you continue to drive results.
4. There are new ad products that you can’t get anywhere else
- Goefilters and Audience Filters are amazing ad products that Snapchat created out of thin air
- We here at FilterPop have a slight bias in this area… but, it can’t be ignored – the filter product at Snapchat is an unbelievably authentic way to advertise. With the less publicized version of filters that Snapchat offers (AR / facial recognition being the most), users actually engage with and then share branded content that they’ve created directly with their audience. This is almost unheard of in advertising. We’ve seen on average 15% of users in a given target area use branded filters, sharing them with their audience, and thereby becoming a brand ambassador for the advertiser. Are you more likely to buy something that a friend directly shares and recommends in content you choose to watch, or something that disrupts your experience as a blatant ad? THIS IS NATIVE ADVERTISING AT ITS FINEST.
- For any company with brand dollars to spend, you’ll do well to spend it here. For location based businesses, it’s a no brainer.
- Given the success of this ad + their AR filters, we are betting they will continue to innovate new ad products for their users and find new exciting, never before seen ways to monetize.
Snapchat still has a ways to go to really attract the marketing budgets that FB and Google command, but we here at FilterPop are bullish on them. Start now, while other’s are staying back and waiting. It’s a great time to find efficiencies and maximize your marketing spend with a wholistic, diversified marketing strategy.