Snapchat has been making significant strides in the advertising space, with a recent announcement of an 85% increase in SMB advertisers on the platform. This surge in advertisers has also led to a substantial increase in ad revenue in the first half of the year. So, what has Snapchat been doing to attract more advertisers and drive better results for them?
One of the key factors contributing to Snapchat’s success in the advertising realm is its evolving ad tools. These tools have been designed to provide advertisers with more capacity to reach a larger audience, create more engaging ads, and ultimately improve ad performance. By continuously updating and enhancing its ad tools, Snapchat is able to cater to the diverse needs of advertisers and help them achieve their marketing goals.
Snapchat has recently made improvements to its Lead Gen Ads, including enhanced lead optimization and integration with Zapier to automate leads reporting into CRM systems. These updates have resulted in a 69% reduction in cost-per-lead and a 62% increase in lead form submission rate. Lead gen ads are a valuable tool for measuring interest and building a direct outreach pipeline with campaigns, and Snapchat’s enhanced offerings in this area provide advertisers with more options to leverage.
In addition to Lead Gen Ads, Snapchat has also improved its app ads with new bidding capabilities and optimization features to support app installs, app purchases, and app re-engagement purchases. The platform has seen positive results with its „Value Optimization“ option for app advertisers, allowing marketers to bid on the basket value of purchases driven. Early test results have shown promising outcomes, with brands like Lancôme experiencing a significant increase in average purchase cart size and return on ad spend.
Snapchat’s reach to younger audiences makes it an attractive platform for app marketers, and the new updates to its app ads will undoubtedly appeal to this demographic. The platform has also introduced advanced AR ad offerings, such as „First Lens Unlimited,“ which guarantees a promoted Lens the first slot in the Lens Carousel. This feature has driven a 25% to 45% increase in incremental impressions for advertising partners and is now available to all ad partners globally.
Furthermore, Snapchat is launching a new „State Targeted First Story“ offering, allowing U.S. advertisers to target their „First Story“ takeover campaigns to individual states. The platform has also introduced AR Extensions for businesses, enabling brands to utilize AR promotions in other areas of the app. Research has shown that campaigns incorporating AR ads alongside video ads on Snapchat see higher ad awareness lift and active attention compared to industry peers.
Snapchat is also investing in generative AI-enabled ad tools, including AI Lenses like the ML Scribble World Lens, which has garnered over 1 billion views in Q2. The platform is developing new options to simplify the creation of AI-powered Lenses, making AR creation more accessible to advertisers. Additionally, Snapchat is integrating generative AI into its ad copy and creative process, allowing marketers to create headlines with AI and localize ad copy in non-English speaking markets.
Overall, Snapchat’s focus on ad development in key markets and revenue growth in developing regions is positioning the platform as a robust ad network. These updates and enhancements to its ad tools provide advertisers with more options to enhance their campaigns and achieve better results. With Snapchat’s continuous innovation and commitment to improving its advertising offerings, advertisers can expect more opportunities and success on the platform in the future.