Is Snapchat The Right Social Media Marketing Platform For Your Brand?
Snap Inc., Snapchat’s parent company, had the largest IPO since 2014, with a market evaluation of $24 billion. That being said, investors aren’t the only ones keeping a close eye on the platform—marketers are, too.
With over 158 million daily users, an average of 2.5 billion snaps sent per day, and users checking the app an average of 18 times per day (according to a report filed with the US Securities and Exchange Commission), it’s no surprise that marketers are considering Snapchat as part of their social media marketing strategy.
That being said, Snapchat isn’t for everyone and every brand. As with most advertising ventures, the success of your campaigns on a specific platform relies heavily on if that channel is one your target audience engages with consistently.
If you’re considering Snapchat marketing for your brand, how do you know if it’s the right allocation of your budget? While there is no ‘one-size-fits-all’ response to this question, there are certain points we can raise and facts to consider that can help shape your decision on whether or not to include Snapchat as part of your social media marketing.
How much does it cost to advertise on Snapchat?
Each advertising option on Snapchat is vastly different when it comes to cost. Various factors go into the pricing for each option, and total cost will vary for each campaign.
Traditional snapchat ads operate on a CPM (cost-per-impression) model, with a minimum spend of….drum roll please….$40,000 a month! Special ad units, such as sponsored geofilters, operate on a cost-per-swipe model, and are also a costly venture. The jaw dropping minimum monthly budget for ads and costs for special ad units are not kind to small businesses.
But-- there is hope for those businesses out there that want results without risking a lot. For efforts with a smaller reach, setting a local geofilter (best for small companies, like a local coffee shop or small boutique) can cost as low as $5. These rates are calculated based on the size of the area you want the geofilter to appear in, as well as demand at that given time.
How does advertising on Snapchat compare to Instagram or Facebook?
Ultimately, Snapchat is a more expensive advertising platform than both Facebook and Instagram (and to put it in perspective, it costs more to advertise on Instagram than on Facebook).
Traditional ads on both Instagram and Facebook can operate on a cost-per-click model, with a minimum budgetthat is usually between $1-5 per day, depending on the ad type. Snapchat’s regular ad units are cost-per-impression. Inherently, Snapchat ads disappear after several seconds, which is aligned with organic posts on the platform. Ads on Facebook and Instagram are longer-lasting, however that’s the nature of those platforms.
What kinds of brands typically advertise on Snapchat?
Generally speaking, most of the brands we see advertise on Snapchat fall in the B2C space--whether it’s a publishing brand with lots of fresh content (Daily Mail, Refinery 29, etc.), or a company within the CPG (consumer product goods) space. In the example below, Mashable uses the Discover platform to serve users with regularly updated, newsworthy content.
Brands like Gatorade, Under Armour, Dominos, and plenty of other “super bowl” brands have experimented with the platform and found a lot of success with it. These brands tend to choose some of the advertising options that reach a wider audience, and are subsequently higher priced, because they have the budget to.
Ultimately, the most important thing to keep in mind is that the brands typically advertising on Snapchat are trying to reach a relatively young demographic, and are tailoring their content to fit those unique needs and interests. This brings us to the next point:
Who is on Snapchat?
71% of Snapchat users are under 34-years old, and 30% of US millennials use Snapchat on a regular basis. For brands trying to reach a young demographic, Snapchat is definitely an option to consider. For brands with a target audience skewed toward an older age range, other social media platforms may prove more effective.
Is Snapchat good for brand recognition?
When it comes to instilling brand recognition, Snapchat is definitely a capable platform. In a study produced by Milton Brown, data found that mobile purchase intent increased by two times when a company shows an ad on Snapchat, and 92% of campaigns have seen a positive sales after advertising on the channel.
What type of ad formats are available on Snapchat?
There are several different ad formats and categories available. All Snapchat ads begin with an up to 10-second video, and advertisers than have the option to select from 4 different interactive elements to continue engaging users.
These “attachments” encourage the user to “swipe up” for more content, and the platform compares this action to that of a standard click-through-rate, boasting that the platform averages a 5X higher “swipe-up rate” in comparison to the average click-through-rate on similar channels.
Attachment offerings are explored on Snapchat’s website, and are summarized below:
Article
●Marketers can showcase content including text-based articles, gifs, or image galleries.
●Measurement includes reach, swipe-up rate, time viewed, and percent of article viewed.
App Install
●Marketers can encourage users to download a specific app from the App Store or Google Play store without actually leaving Snapchat.
●Measurement includes reach, swipe-up rate, number of installs, and time viewed.
Long-Form Video
●Marketers can run full length video content, including anything from tutorial videos to short films.
●Measurement includes reach, swipe-up rate, time viewed.
Web View
●Marketers can send users to a pre-selected, pre-loaded mobile web page when they swipe up.
●Measurement includes reach, swipe-up rate, average time on site, and time viewed.
How do “sponsored lenses” work?
Sponsored lenses, which are active for 24 hours, allow users to actually interact with the “ad” while they take a snap, and appear alongside with the platform’s organic lenses. This particular ad venture, which can be used for national campaigns, is a costly one and has been estimated to costbrands from $300,000 to $750,000 for one day.
In a case study provided by Snapchat, Michael Kors encouraged Snapchat users to try on sunglasses when they took a selfie in celebration of “National Sunglasses Day.” Total views for the campaign were estimated to be over 104 million, and the brand saw a purchase intent lift of over 6%.
How do “sponsored geofilters” work?
Geofilters, location-based filters that users can include on their Snapchats, are another option that marketers have for making an impression on users. The creative for filters can include brand name and promotional material, but must have a “sponsored” stamp included. The platform offers four different types of campaigns:
Event – For major events or big campaigns that marketers want users to draw a connection to their organization with.
Shared Spaces – For a specific “high traffic” social space that marketers want to reach their audience at (could be an airport, a college, etc.).
Chain – For offline retailers that want to offer Snapchat users some social engagement at all of their locations.
National – For generating brand recognition on a incredibly wide-scale for a product or event.
How do “on-demand geofilters work”?
For events or companies that operate on a smaller scale (and budget) on-demand geofilters are an effective way to try and leverage some of Snapchat’s growth. While you won’t have the same significance in terms of reach like sponsored geofilters do, for small businesses or start-ups this is a great option. You create a design, select on a map where you want that geofilter to appear and during what time period, and you purchase it. This can be done on a day-to-day basis and pricing is fairly low, and determined by demand, location, and the size of the geofence.
Is Snapchat the platform for Influencer Marketing?
This year, arguably more than ever, influencer marketing will be in full swing. The power that influential personalities have in different industries is quite incredible, and Snapchat is certainly a channel that is involved. From “unboxing” events, to behind-the-scenes-footage, to Snapchat “takeovers,” if the influencers have a significant following on the platform, it certainly can help to boost sales, brand recognition, and perception.
Snapchat marketing – is it right for your brand?
Like any digital advertising plan, there are pros and cons to each platform. For the right brand with the right budget, Snapchat can be an excellent opportunity to reach a targeted group of users and produce measurable results. Ultimately it’s important to consider all facets of Snapchat’s advertising options before implementing them into your strategy, but with so many successful brands considering this platform for their own social media campaigns, it certainly is worth consideration.
To learn more about social media marketing and Snapchat advertising, visit Blue Fountain Media online.
Original Source: https://www.forbes.com/sites/gabrielshaoolian/2017/03/08/is-snapchat-marketing-the-right-social-media-platform-for-your-brand/2/#26fa791a6627
Blog Credit: Forbes
