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BizReport : Advertising archives : January 18, 2017

L2 Report: 64% of brands now on Snapchat

A new report from L2 reveals that nearly two-thirds of brands are now on Snapchat while Facebook is suffering from ad fatigue.

by Helen Leggatt

Social media ad spending is growing faster than any other investment channel. Brand adoption of Snapchat grew 50% from January to October last year, reports L2 in their fourth annual intelligence report, with 64% of brands now on the app.

Ads on Snapchat also increased last year during the same period. At the start of 2016, 23 brands served 161 ads on Snapchat's Discover feature. By October, 63 brands accounted for 387 such ads.

"Social ad spend continues to grow faster than any other ad investment channel and social platforms are racing to keep up with the demand for new, more sophisticated offerings," said Evan Neufeld, vice president of intelligence for L2. "With the rapid pace of innovation among social platforms, brands must ask themselves how they can use social to extend its impact past brand awareness, converting followers into loyal customers across a wide array of platforms."

Meanwhile, Facebook seems to be suffering from ad fatigue. Share of posts promoted by Index brands on the social network stayed at around 16% from February to October 2016, and average interactions per promoted post dropped 19%.

Instagram also saw a 30% drop in engagements across all Index brands, although it remains the lead social platform for engagement, accounting for 92% of all social media interactions.

Twitter also saw a 15% drop in consumer replies despite 66% of index brands use the platform as a customer service tool.

Tags: advertising, brands, social marketing, social media

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