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BizReport : Social Marketing : August 08, 2017

Snapchat's ad spend is up, what that means for brands

Post-IPO, social hub Snapchat has announced ad spend increases of 101% (Q1 vs Q2), with increases in specific areas, like Home & Garden showing increases of more than 1000%. Those numbers are enough to have any advertiser wondering what impact the social network could have on their revenue numbers. We asked an expert what these numbers mean, in the big picture of social marketing.

by Kristina Knight

Kristina: What can brands can expect to see from Snap in the coming quarter?

Aaron Goldman, CMO, 4C: Snap is starting to secure a more evergreen spot on the media plan for brands as it moves beyond test budgets. For advertisers looking to reach an engaged audience with high-impact messaging, Snap is one of the premier options available on the market. For brands more focused on direct response such as app installs, Snap has proven to provide the targeting and scale needed for optimization to cost-per-install and lifetime value metrics.

Kristina: What are the implications for Snap's enterprise enablement?

Aaron: One of the biggest barriers to entry for Snap Ads has been creative development. Many brands don't have vertical video assets in the can. The launch of Snap Publisher makes it very easy for anyone to create a video to the specs of Snap Ads. This, coupled with the launch of Snap's self-serve Ad Manager will attract small and medium-sized businesses to the platform. For the larger enterprises, the robust tools provided by Snap Partners enable managing targeted campaigns at scale to meet bespoke marketing goals.

Kristina: What does Wall Street think of Snapchat's potential?

Aaron: Snap has vast, long-term potential as it offers an engaging platform for communication and entertainment. The latter is what positions it so well to augment TV ad budgets, especially those targeting the younger demographic. The key metric to watch is time spent with the app. The more it can keep people tuned in throughout the day the more it will become the premier destination for brands looking to break through the multi-screen clutter and engage their key audiences.

Tags: 4C Insights, advertising, Snapchat, social advertising, social marketing, social marketing ad spend

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