02 May Snapchat Advertising
A Company Gone Public
With Snapchat’s recent Initial Public Offering (IPO) on the New York Stock Exchange, and its new product ventures, the company’s public profile and popularity are on the rise. As such, there are bound to be many more product and/or service offerings on the way from this dynamic, social media darling.
A Company Afire
We needn’t wait, however, for any future releases for the company to catch fire. Snapchat is already on quite the roll. One of it hottest features right now is Snaps advertising. Major companies are starting to take notice, too.
On April 28, WPP, the world’s largest advertising group, announced it will spend $200 million on Snapchat advertisements in 2017. This amount is more than double the $96 million WPP spent on Snapchat advertising in 2016.
Snapchat Advertising Options
Given Snapchat’s 150 million daily users, there’s no mystery as to why companies invest in Snapchat advertising. Snap offers multiple ways to advertise on its app. Below is a breakdown of those options:
1) Snap Ads
Snap Ads are Snap’s newest advertising option. These adds are short, full-screen videos that appear between regular snaps. Users can click to open a short video or picture with the ad.
These short, appealing ads last only 10 seconds. They allow the user to “swipe up” to view additional, ad-related information, making the experience more interactive and more user-centric. The additional content can include summaries, videos, pictures, games, and more.
Initial Snap Ads pricing was estimated to start at around $100,000 at minimum. At one point, in 2015, the price dropped to 2 cents per view, or to $20 per 1,000 views. This year, however, prices have again risen, with premium features costing around $55 for 1,000 views.
For example, a recent Gatorade Snap Ad used the swipe-up feature and included a mini, 8-bit tennis game. This wildly successful ad was designed to celebrate Serena Williams’ 23rd Grand Slam victory. Users spent an average of three minutes with this ad, representing a high engagement level. Moreover, the ad was viewed a record 30 million times.
2) Sponsored Geofilters
Geofilters are available based on your geographic location, which is estimated using Snap’s available GPS networks. This filter appears on a picture as you take it. At the outset, the most common Geofilter was city name; however, companies are now creating special Geofilters for events or products.
Of all the Snap Adverting options, Geofilters is the most affordable. Major companies are jumping on the Geofilters trend, too. The first of these was a growing fast food enterprise known as “McDonald’s.” You might have heard of it.
By some estimates, McDonald’s spent up to a million dollars on this filter. On the other side of the spectrum, the geofilter is great addition for event promotion. Using it for a wedding, for example, can cost around $15.
The Academy Awards made use of Snap’s Geofilters feature, using it to promote the 2017 ceremony at the Dolby Theater, Hollywood, California, Feb. 28.
- 2b) Sponsored Lenses
The more interactive version of the Geofilters is known as sponsored lenses. Users use these filters to add content to their snaps. A famous, clever example of the use of Sponsored Lenses is the “Puppy Face” lens.
Sponsored Lenses are a used to promote a brand or a product through interactive play. According to estimates, Sponsored Lenses drive up to three times more awareness than other forms of advertising. They cost $450,000, Sunday to Thursday, and $500,000 Friday to Saturday. On holidays and major special events, the cost rises to and a $700,000.
On national Sunglasses Day, Michael Kors let “Snapchatters” try the company’s MK Sunnies product. The number reached over 104 million, with the average play time lasting 26 seconds. The filter generated an 18-point increase, representing 1.5x greater ad awareness compared to normal mobile ads. Internet purchases rose 6 percent compared to typical mobile ads.
Snapchat Discover is, by far, Snap’s most expensive ad type, making them the choice of deep-pocketed, major brands. These premium ads sit at the top of the app. Initially, pricing for these ads started at $750,000 for a single day. A few months ago, however, price dropped to a starting point of $50,000.
Snapchat Discover publishers include CNN, MTV and Cosmo. Snapchat recently stated that Cosmo was one of its leading publishers. The women’s-focused publication has averaged several million views per day on its feed.
Regardless of the competition (which includes Facebook-owned Instagram), Snapchat seems to retain its popularity. It continues growing and innovating, steadily attracting new users and advertisers. Investors and corporate America are watching and taking note. As such, the company appears to have a steady future ahead, driven by innovation and creativity.