In 2018, 66% of digital advertising spend went to Google Search, YouTube, Facebook, and Instagram. As these channels become saturated with advertisers, especially during busier times of the year like Black Friday/Cyber Monday (BFCM), CPAs and CPMs start to rise. So, how can you cut through the noise and reach your audience when every e-commerce brand out there is promoting its BFCM and holiday campaign at the same time?
It’s vital for e-commerce brands to explore less saturated and underpriced media this Q4 and get more bang for their advertising buck. An effective way to do this is to consider Snapchat advertising.
Who uses Snapchat?
The first step in knowing if Snapchat is a good place to invest ad spend is to make sure your customers are spending time there. Some key Snapchat demographics include:
- 75% of Snapchat users are under 35 years old.
- Roughly 61% of Snapchat users are female and 38% are male.
- 61 million users use Snapchat daily in Europe.
The power of Snapchat advertising
Did you know:
- Snapchat is on track to net $1 billion in US net ad revenues in 2020
- Snapchat’s Story ad CPM rate (cost per 1,000 ad impressions) is 8X cheaper than Instagram’s
- 200 million people use the Snapchat platform every day, globally (that’s a lotta eyeballs!)
Hopefully, now you’re convinced that Snapchat is an ad channel worth looking into, especially with your busiest and most lucrative season around the corner.
Clearbanc wants to support you as you embark on your Snapchat journey so we asked two of our preferred agency partners, adMixt Inc and SocialWithin, for their best advice when it comes to Snapchat advertising.
Meet your Snapchat experts:
Zach Greenberger is the CEO of Admixt, a digital agency backed by decades of experience in performance marketing.
Faheem Siddiqi is the CEO of SocialWithin, a performance marketing agency for consumer brands.
Why should e-commerce companies consider Snapchat as a digital ad channel over other channels?
Zach: The Snapchat demographic is different than all other social networks. They are highly engaged, make quick purchase decisions & are younger than other platform audiences. So it’s a great way to reach a fresh audience.
Faheem: Snapchat ads are a great way to diversify your marketing mix and increase top-of-funnel acquisition opportunities.
How are your clients using Snapchat advertising to achieve their goals?
Zach: Clients are using the product catalog and Snap Story ad units, seeing a high ROAS and great performance overall. The algorithm is getting smarter and enables clients to drop CPAs while scaling.
Faheem: Our clients are using Snapchat to drive incremental sales by reaching new customers.
Share some impressive results clients have seen from Snapchat ad campaigns.
Zach: Our client was able to decrease their CPAs by 25% QoQ just by investing heavily in the Snap Story feature.
Faheem: Consumer brands that advertise on Snapchat see results. One luxury accessories brand achieved a 50% lower CPM than any other channel using Snapchat’s goal-based bidding feature.
What’s your best piece of advice for brands planning to invest in Snapchat?
Zach: Have a creative/content strategy before launching your Snapchat ads. This way, you know what needs to be created net new and what can be repurposed for a Snapchat audience.
Faheem: When it comes to Snapchat advertising, the best piece of advice I can give is to build native creative that captures people’s attention. The algorithm favors it.
Interested in exploring Snapchat advertising? Connect with a Clearbanc Investment Analyst and we can help you take the next steps to dominate your Q4 with equity-free funding and access to Snapchat ad experts.