Are ads on Snapchat effective?

Snapchat is a popular social media platform that allows users to share photos, videos, and messages that disappear after being viewed. Since its launch in 2011, Snapchat has grown to over 300 million daily active users. A key feature of Snapchat is its Stories format, which allows users to post content that is available for 24 hours. Snapchat also offers businesses and brands the ability to run ads within Stories and curated content in Discover. But are these ads effective? Here we will examine the pros and cons of Snapchat advertising and look at key statistics on its performance.

The pros of Snapchat ads

There are several advantages to running ads on Snapchat:

Targeted reach

Snapchat provides robust targeting options to allow businesses to reach specific demographics and interests. Ad campaigns can be targeted by age, gender, location, interests, behaviors, and more. This makes it easy to tailor your ads to your ideal audience.

Full screen mobile ads

Snapchat ads occupy the entire screen while users are engaged in the app. This provides impact and attention in a clutter-free environment. The vertical video ads feel native to the Snapchat experience.

Innovation and creativity

Snapchat enables advertisers to create fun, playful ads using interactive features like filters, lenses, and augmented reality. Brands can leverage the creativity on the platform for innovative ad formats.

Sharable and viral content

Snapchat makes it easy for users to share content with friends. If you create compelling Snapchat ads, users are likely to screen shot or share them, driving viral exposure for your brand. The temporary nature of Snaps also encourages sharing before content disappears.

Relatively low cost

Compared to other social media platforms, Snapchat ads can be affordable and offer a low barrier to entry for businesses with smaller budgets. Snapchat provides reasonably priced cost per impression (CPM) bids.

The cons of Snapchat ads

However, there are also some limitations to consider with Snapchat ads:

Short shelf life

The temporary nature of Snapchat means your ads have a short shelf life. Stories only last 24 hours maximum, and individual Snaps disappear even quicker after viewing. This can make it difficult to drive lasting brand impressions.

Limited audience data

Snapchat provides more limited analytics on ad performance and audience engagement compared to other platforms. There is little public demographic data available on Snapchat users.

Less content optimization

Snapchat offers less flexibility for optimizing ad content after launch. Options like A/B testing or changing creative mid-campaign are restricted.

Younger demographic skew

A majority of Snapchat’s audience is under 30. While highly engaged, the audience skews quite young. This makes Snapchat advertising less ideal for brands targeting older demographics.

Unproven with lower brand lift

Some studies show Snapchat ads generate lower brand lift and unaided brand awareness compared to other social platforms. The ads are still relatively unproven compared to more established platforms.

Snapchat ad formats

Snapchat offers several ad products and formats for businesses:

Snap ads

10-second video ads that appear between Stories or Discover content. Snap ads can be skipped after 6 seconds.

Sponsored geofilters

Exclusive filters for user photos and videos in specific geographies. Geofilters last for short periods of time.

Sponsored lenses

Interactive, augmented reality lenses that overlay Snaps. Lenses can be sponsored by brands.

Collection ads

Ad units that drive traffic to a brand’s e-commerce site or app. Includes shoppable images.

Story ads

Video ads of 3-10 seconds in length that run within Stories. They are skippable.

Commercials

Longer video ads that run within curated content in Discover. Commercials can be up to 3 minutes long.

Snapchat also offers an Ad Manager platform for businesses to set up, manage, and optimize ad campaigns.

Snapchat ad targeting options

Snapchat enables advertisers to target ads using a range of options:

Demographics

Target by age, gender, household income, parent status, and more.

Location

Target ads by country, region, city, neighborhood, even down to the postal code.

Interests

Snapchat categorizes users into interest profiles like “Fashionistas” or “Sports Fans” that can be targeted.

Behaviors

Target based on device usage behaviors, purchase histories, and real-world behaviors.

Lookalike Audiences

Find new audiences that share similar qualities to your existing customers.

Pixel-based Audiences

Target users who have visited your website or ads based on website pixels or app activity.

Content

Contextually target ads next to relevant Snapchat content.

Advanced Audiences

Combine multiple targeting options for very specific audiences.

Snapchat ad benchmarks and pricing

The cost to run Snapchat ads can vary significantly based on many factors. Here are some key benchmarks on pricing:

Average CPM

– Snap Ads: $3 – $8
– Sponsored Lenses: $20 – $40
– Sponsored Geofilters: ~$5
– Commercials: $20+

Minimum Ad Spend

– Snap Ads: $500 per day
– Sponsored Lenses: $450 per day
– Sponsored Geofilters: $5 minimum order

Suggested Daily Budget

– Awareness Campaigns: $1,000+ per day
– Performance Campaigns: $2,000+ per day

Optimal Ad Frequency

– Snap Ads: 2-3 per user per day
– Sponsored Lenses: 1 per user per day
– Sponsored Geofilters: 3 per user per day

Snapchat ad performance statistics

Here are some key statistics on how Snapchat ads are performing:

Snapchat User Statistics

Daily Active Users	332 million (Q1 2022)
Monthly Active Users	332 million (Q1 2022)
Regions with Most Users	North America, Europe
Gender	60% Male, 40% Female (U.S.)
Age	50% 18-24, 26% 25-34 (Global)

Snapchat Ad Reach

– 75% of 13-34 year olds in North America use Snapchat (2021)
– Snapchat reaches over 90% of 13-24 year olds in the U.S.
– Over 75% of the U.S. Gen Z population use Snapchat

Snapchat Ad Engagement

– Snap ads have an average view rate of 60% (Snapchat internal data)
– Snap ads deliver up to 2x higher visual attention compared to Facebook ads (Snapchat/IPG Media Lab study)
– Sponsored lenses average 30 seconds of playtime and over 60% play rates
– Sponsored geofilter swipe rate is around 55% on weekends (Snapchat internal data)

Snapchat Ad Effectiveness

– 52% of Snap Ads drive intent to purchase (Snapchat/Kantar study)
– Snapchat CTR is 2.5x higher than Facebook/Instagram (Influencer Marketing Hub benchmark data)
– Snapchat delivers 2-3x higher lift in brand awareness, favorability, and purchase intent compared to social benchmarks (Snapchat/Millward Brown studies)

Examples of effective Snapchat ad campaigns

Here are some real brand examples that have run successful Snapchat ad campaigns:

Netflix “Altered Carbon”

To promote its Altered Carbon series, Netflix created a sponsored Lens that allowed users to transform themselves into a cyborg. The Lens garnered over 33 million impressions.

Wendy’s Sponsored Geofilter

Wendy’s promoted their Jalapeno Fresco Spicy Chicken sandwich using branded geofilters in Los Angeles and Dallas. The filters generated over 110k Snap views.

Covergirl Sponsored Lens

Covergirl developed a branded Lens to promote its new Peacock Flare mascara. The Lens reached 16 million users with an average playtime of 20 seconds.

Universal Pictures “The Secret Life of Pets 2”

Universal Pictures ran multiple video Snap ads for its Pets 2 movie trailer. The ads generated up to 6x higher aided awareness lift compared to benchmarks.

Chipotle Sponsored Lens

Chipotle promoted its new Queso Blanco product with a Lens that turned users into a dancing taco. It recorded 8 million impressions in 24 hours.

Gatorade “Beat the Heat”

Gatorade built a custom branded Lens experience for the Miami Heat basketball team. The Lens exceeded 36 million impressions across 2 days.

Best practices for Snapchat ads

Here are some top tips for success with Snapchat advertising:

Leverage Snap Ad Manager Use Snapchat’s Ad Manager platform to optimize targeting, creative, bidding, and measurement.	Focus on the end user experience Prioritize fun, engaging ad experiences vs. pure branding messages.
Tailor content to the platform Design short, vertical video ads that align with Snapchat’s ephemerality.	Make ads interactive Drive engagement through polls, questions, lenses, filters, AR experiences.
Retarget website visitors Target Snapchatters who have visited your sites or apps.	Measure performance Leverage Snap Pixel and track conversions, signups, foot traffic.

Conclusion

In summary, Snapchat advertising offers unique benefits with its video ad formats, targeting capabilities, and highly engaged youth audience. While there are some limitations like ephemeral content and less audience data transparency, Snapchat ads can be an effective way to drive brand awareness and engagement with younger demographics. With innovative and creative approaches tailored to the Snapchat experience, brands have seen success promoting products and driving website conversions through Snapchat ad campaigns. Tracking performance through Snap Pixel and optimizing based on results is advised. As Snapchat grows and matures as an ad platform, it provides an important addition to a brand’s social media advertising mix.