How valuable is ten seconds of Millennial mindshare? Brands like McDonalds, Taco Bell, Audi and the NBA are ramping up their advertising efforts with Snapchat, the photo and video app that disappears in 10 seconds. Although there are many skeptics I am not one of them. Snapchat is poised to become the next great advertising platform.
Brands crave scale, demographics and engagement. Snapchat can check all three of those boxes.
Scale : Every day, 700 million snaps and 1 billion stories (a thread that can be viewed for 24 hours) are viewed. There are more than 30 million Monthly Active Users and 16.5 million Daily Active Users. Their loyalty is impressive -- average users visit the app an astounding 14 times per day. Snapchat’s growth is far outpacing its rivals. Between Q3, 2013 and Q1, 2014, Snapchat grew 67%; faster than any of its competitors (GWI Social). 70% of those users are female.
Demographic : Advertisers and their agency minions crave one group more than any other – Millennials (18-34 year olds). According to comScore (June, 2014), Snapchat is the #3 social app among Millennials (32.9% penetration) behind only Instagram (43.1%) and Facebook (75.6%).
Engagement : Mobile banner ads have proven to be a disaster. One agency estimates click through rates of only .01%. Snapchat’s unique advantage as an advertising platform is the format, which literally requires engagement. In contrast to display advertising, which is passive, Snapchat users must hold their finger over a photo or video to view it. Brands know with certainty if their ad has been viewed and by whom.
The demographic is ready to engage on this platform. According to Sumpto (usually referred to as “ Klout for college students”), 73% of college students would open a Snap from a brand they know and 45% would open a Snap from a brand they don’t know.
To date, the most effective Snapchat advertising strategies have been exclusive content and authentic voice. Below are three examples from 2014 of brands successfully engaging with their consumers via Snapchat.
Strategy: Partner with The Onion to engage with future luxury auto buyers.
Execution : In the weeks leading up to the Super Bowl, Audi partnered with The Onion for the ongoing Snapchat theme, “All The News That Isn’t Football.” The pairing of stock photos with ironic captions helped Audi achieve 37 million impressions.
You can see more about the Audi campaign here.
Brand : Free People (fashion)
Strategy : Turn fans into “Insiders”
Execution : Exclusive sneak peek for upcoming collections featuring top models. The company’s Millennial staff is also a tool for connecting with their demographic. This includes tours of the company office and features like Question Wednesdays, where Free People employees answer questions from the community.
Pictured above: Supermodel Camille Rowe, in a sneak peak of upcoming Free People lingerie.
Brand : NBA
Strategy : Behind the Scenes at the NBA’s marquee events
Execution : The league used Snapchat to provide a different vantage point during the 2014 Draft as well as the All Star Game. Those successes led to the exclusive locker-room interview at the League Championships, where Hall of Famer Bill Russell spoke with Series MVP Kawhi Leonard.
Pictured above: NBA legend Bill Russell interviews the MVP of the Championship Series, Kawhi Leonard.
Brands, this is your call to action. Learn about Snapchat and start Snapping.
Levi Shapiro is a Partner at TMT Strategic Advisors, a research and strategy firm focusing on the technology, media and telecom sectors. He can be reached at firstname.lastname@example.org or via twitter: @levshapiro
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