Snapchat is the new buzzword and social media marketers along with investors are keeping a close eye on the performance of the app whose parent company possessed the largest IPO since 2014 with a market worth of $24 billion. Snapchat is being considered as the new kid on the block for social media marketing. The app is checked approximately 18 times on a single day by an average 158 million users for sending around 2.5 billion snaps which is absolutely stunning in terms of number. Naturally, it cannot be ignored anymore.
However, according to survey reports, Snapchat is not for everyone and every brand. After all, marketing depends on a large extent on engaging with target audience consistently. Therefore, knowing about the engagement rate before marketing is an intelligent strategy. Is Snapchat eligible as the next biggest thing for social media marketingon a budget? There are certain factors that should be considered to find out whether the app is actually effective for social media management.
There are various advertising options offered by Snapchat and they are different in terms of cost. The factors influencing cost are aplenty thus varying the cost for each campaign. CPM (cost-per-impression) is the model on which the cost is calculated for each advertising campaign. The minimum cost following this model is $40,000 per month. Special ad units like sponsored geofilters operate on a different model known as the cost-per-swipe model which is quite an expensive venture. The latest model is not a good option for small businesses.
However, there are facilities for businesses that want results without investing a lot of money. Setting up local geofilter with a smaller reach can cost as low as $5. The rates are calculated depending on the size of the area you want your ad to appear in and also depends on the time.
What are the Snapchat Friendly Brands?
Usually, the B2C use this app as their advertising platform with lots of fresh content. CPG or consumer products goods companies also use this platform as their marketing tool. Various food chains, news channels use Snapchat as their promotional platform. Their promotional campaigns have also been successful using the app. However, they are spending a huge amount of money and utilizing the broad consumer base. All these brands are trying to reach out to a younger demographic and are publishing content that cater to them.
What kind of users actually use Snapchat? 30% of millennials are using Snapchat while the rest 70% belong to the adult age group of below 34 years old. Hence, this is the app for promoting products mainly used by young adults and adults. Other social media platforms might be more effective to market products belonging to the aged group.
What about Brand Recognition?
Cultivating brand recognition can be done on Snapchat. According to a study produced by Milton Brown revealed that mobile purchase intent has increased by placing product ads on Snapchat. 92% of campaigns have met with considerable amount of success by using this app.
Ad Formats of Snapchat
Different types of ad formats and categories are available on the app which can begin with a 10 seconds video to 4 different interactive forms engaging users. These features encourage users to swipe and access more content which in turn provides 5X higher click-through rate making the platform an effective one for marketing. Some of the features for the purpose include:
The Special Feature- Sponsored Lens
The special feature known as Sponsored Lens allows users to interact with the advertisement for 24 hours. During the interaction, the app takes snap which appears alongside the platform’s organic lenses. This particular ad venture is costly but brings very good results which can be used for national campaigns. Bigger brands use this feature for their benefit and celebrate a particular ‘Day’ with the audience reaching straight to their hearts.
Are Sponsored Geofilters Effective?
Impressing users by using location-based filters has become a popular option. Promotional material and brand name can be a part of the creative but should bear the stamp of the sponsor. 4 different types of campaigns are present in the platform. They are:
Operation of “on-demand geofilters”
This is particularly for smaller business houses with stringent budget. This is a great option for start-ups as well because you can create design and select on a map where you wish to use your geofilter. You can also specify the time period for its appearance. The pricing is low and it is operational on a daily basis.
Is Snapchat for Influencer Marketing?
The power celebrities have on the audience is incredible and this feature uses it to promote brands on Snapchat. This demands the influencers to have a formidable amount of followers which will boost sales, improve brand recognition and perception.
As a conclusion, we can say that there are pros and cons to Snapchat marketing like any other digital marketing platform. For the right brand with the right kind of budget, it can have significant influence on the uses. Whether it is perfect for your brand is your call, but with so many brands using this platform successfully, you can definitely rope it into your marketing strategy.
Javier Quincoces on 02-Mar-2018