Brand advertisers ramped up their spending on Snapchat in the third quarter of 2020, bolstering parent company Snap Inc.’s revenue. The performance beat early Covid-19 media reports and analyst estimates that recognized rising figures for usage but worried about how the channel would fare as online advertising cratered. As it stands, using Snapchat for business remains relevant to your social media marketing strategy. Buoyed by deep and unique user engagement, the growing numbers indicate that businesses should not count it out — now more than ever.
Since many schools, stores and services in the country started shutting down this year, leaving people stuck indoors in their homes, Snapchat has consistently reported increased engagement. As of the third quarter, daily active users reached 249 million, higher than a Bloomberg poll’s average projection of 244.6 million. More and more people are using the app to stay in touch with friends, get the latest pandemic-related updates (Snapchat fact-checks and curates Covid-19 info in the Discover section) and adjust to the new normal.
Snapchat measures up to its biggest competitors through this captive audience. From late February to late March, Snap Inc. internal data saw install volume for app ads increase by 36 percent and swipe-up rate overall by 19 percent. Marketing on Snapchat makes scaling your brand or online business easier during the times we’re in, especially if you’re targeting the younger generation (15 to 35 years old). It’s a matter of aligning your goals with the organic and paid solutions offered on the platform.
In this blog post, we break down for you the factors that make Snapchat a strategic channel for raising brand awareness and boosting sales among highly targeted, younger consumer audiences. We cover:
• Snapchat vs bigger players
• Top three benefits of using Snapchat for business
• How to set up a Snapchat account for your brand
• Four major ways you can craft a Snapchat marketing strategy for your online business
• Getting started with advertising on Snapchat
Snapchat vs Bigger Players
Snapchat made waves with innovative features that changed the landscape of user-generated content (UGC), as well as social media marketing and branding. The app pioneered the sharing of ephemeral photos, videos and text messages. And the likes of Amazon, Sour Patch Kids and Taco Bell were quick to tap into its storytelling format to promote their products, connect with their followers and dish out deals.
Snapchat’s earliest user base was largely composed of younger millennials and Generation Zers. And among its most appealing features was Snapchat Stories, a collection of photos or videos that disappeared after 24 hours. While the company was gaining more popularity, Facebook created a product that looked curiously similar to Snapchat Stories. Soon enough, Facebook Stories and Instagram Stories were launched, but it was the latter that really took off. Snapchat’s lead eventually dissolved when Instagram Stories surpassed its daily active user count and became twice as popular as the “original”.
All of these happened between 2011 and 2018. Facebook and Instagram have since deployed with success what made advertising on Snapchat attractive. But even if Snapchat is a smaller ad platform, it continues to speak to specific audiences and produce a high rate of returns for brands. Those who cater to younger demographics can still gain a lot from marketing on Snapchat.
Snapchat is a great platform to use if your target market is Gen Z, or even younger millennials. Your brand will stand out, and show that target market that you’re up to date with the latest trends, and give them an insight scoop on your business,” said Lauren Greenberg, Thrive’s social media strategist for paid ads.
Here’s a quick overview of how viable Snapchat is as a part of your overarching digital marketing strategy.
|Daily Active Users||Engagement Rate (Share in DAU)|
Source: 1. Statista.com, as of the third quarter 2020, 2. Statista.com, as of June 2020
Top 3 Benefits of Using Snapchat for Business
Drawing from the insights gleaned from the comparative data, we can infer that marketing on Snapchat is profitable to companies dealing with consumers. If you’re a business to customer (B2C) brand, here are several ways Snapchat advertising can make a sizable impact on your business.
1. Connect With Millennials and Generation Zers
With a combined direct spending power of nearly $3 trillion, these demographics are outspending older generations in many areas and influencing household purchases. They spend more than 30 minutes on the app, which provides you with tons of opportunities to reach your potential customers. Sixty percent of the millennial and Gen Z Snapchatters are also likely to buy goods and services they find through Snapchat ads on impulse.
2. Let Your Brand Shine Through
You can’t convert your target audience if they don’t know you. Snapchat video and photo storytelling format makes it easy for you to introduce your brand. The fun part? You can be casual, authentic, playful or whatever other characteristics you believe align with your brand. The point is to hook people and win them over to your side by showing your brand personality.
I think Snapchat is an awesome platform for building brand awareness, because it’s short and we typically see that people like quick, to the point ads. [Ten]-second video ads between stories can help promote businesses,” said Greenberg.
The main advantage of Snapchat vs. other platforms is that it’s easy and fun to engage with audiences, and has a more personal feel to it.”
3. Drive Traffic to Your Website or App
Leverage immersive Snapchat video or image content to engage your audience and convince them to swipe up and click on your eCommerce site or app install link. It turns out Snapchatters prefer shopping online using their phones over in-store, one of the significant effects of lockdowns across the United States. In an April blog post, Snapchat named the top trending categories: athleisure, pet products and home goods.
People remain cooped up at home and socially distanced, their priorities and needs shift. This event is reflected in other areas that are seeing a spike in user interest and activities, providing a hint as to which businesses can benefit the most from Snapchat advertising. Snapchat listed the following in the same blog post:
• Fitness and wellness
• Streaming and music
• Gambling games
• Mobile gaming
• Online meditation services
How to Set Up a Snapchat Account for Your Brand
Before you can launch successful Snapchat marketing campaigns, you must set up a Snapchat Business account. It’s the only way you can access ad creation tools and custom targeting features that will set your social media advertising efforts in motion.
1. Download the App
2. Create an Account
If you have no Snapchat account yet, you have to create one first.
• Click the Sign Up button and fill out the information required: your name, username, password, email, phone number and birthday.
• When choosing a username, stick to your brand or something that applies to all of your social media profiles to enhance brand recognition.
If you already have an existing account, just click Log In and enter your username and password.
3. Set Up a Business Profile
Go to the Ads Manager and enter your business name. You will also be asked for your country, currency and phone number.
Once you’ve completed the login details you’re ready to choose a Snapchat advertising goal, which will serve as a top metric when you run your Snapchat ads.
You can also treat them as a guide on how to use Snapchat for business. Your goals can include:
• Website visits
• Promote local place
• Calls and texts
• App installs
• App visits
4 Major Ways You Can Craft a Snapchat Marketing Strategy for Your Online Business
Knowing how to navigate and use the Snapchat Ads Manager is the gateway to exploring how to use Snapchat for business. But you don’t have to arrive as an empty-handed newbie. Here’s a strategy shortlist on how to use Snapchat for marketing:
Organic Snapchat Marketing Strategy Tactics
1. Produce Content Consistently
If you’re wondering how to use Snapchat for marketing purposes, this is the place to start. Churning out new Snaps regularly can lodge you into the minds of your followers. The main reason is that the most recent content appears at the top of their feed, and you want them to see you there often.
Just don’t overdo it, driving your audience to experience social media fatigue. Share only your true highlights, as well as what adds value to potential customers’ lives.
Pro-Tip: Tapping a Snapchat agency to whip up a calendar for you can help focus your messaging and content creation.
2. Build Your Community
When you’re starting out, you can realistically only reach a few Snapchatters at first. So you need to make it easy for new followers to find you. This is necessary because unlike Instagram, for instance, Snapchat does not employ hashtags that direct browsers to business accounts. The potential customer should know about your brand and seek you out.
One way to have them find you faster is to share your brand’s Snapcode. A Snapcode is similar to a QR code and unique to each user. If a person scans it on their Snapchat app, they will be directed to your profile.
It looks like this.
Pro-tip: Find a reliable Snapchat marketing agency that can manage your social media marketing to cultivate a community strategically and sustainably.
Paid Snapchat Marketing Campaigns
1. Pick Your Desired Ad Format
You can choose any of the following types according to what works best for you:
• Story Ads: Found in the Discover section, these are branded sets of three to 20 full-screen images or videos with a call-to-action (CTA). The CTA directs people to a destination you have chosen.
• Snap Ads: What we refer to as a Snap ad is what people usually get as an answer when they ask how to use Snapchat for business. Indeed, it is the standard portrait Snapchat video or image ad that leads users to your site, app or longer video through the Swipe Up feature. It’s said to convert five times more effectively than traditional banner ads.
• Sponsored Lenses: This type allows you to create interactive filters that individuals can use on their photos or videos. These aren’t cheap, though, as their price ranges from $450,000 to $700,000. But on average, users spend 20 seconds playing with the app, which can improve brand recall.
• Snapchat Geofilters: These are similar to lenses but location-specific. Brands can sponsor geofilters for $5 to hundreds of thousands for national campaigns, a single day of which can reach 40 to 60 percent of Snapchat users.
• Collection Ads: This format allows several products, which people can shop directly on the app, to be grouped together. Compared to the standard Snap ad, it is reported to increase engagement significantly.
Pro-Tip: The less intrusive an ad is, the better. Target is a perfect example of a brand crafting ads that are not too different from the UGC people see on their feed. Here are some striking visuals and witty captions which combined, deliver a fun, entertaining and subtle Snap ad.
2. Leverage Snapchat Influencer Marketing
Take inspiration from lucrative Snapchat influencer marketing campaigns. Rey Bercero, Thrive’s demand generation social media specialist said that this amplified word-of-mouth marketing approach can broaden your reach. Just make sure you pick the right influencer to deliver your message, so it will come across as honest and sincere.
Pro-tip: Host a brand takeover and partner with an influencer who’s already active on the platform. Most Snapchat influencer marketing success stories happened to be exclusive events, which means they weren’t crossposted from elsewhere like Instagram. These are typically planned with the help of a Snapchat marketing agency.
Getting Started With Advertising on Snapchat
Snapchat’s storytelling model has become more relevant during the coronavirus crisis and as discussed, you can leverage this surge. You can incorporate both organic and paid Snapchat ads to generate demand, conversion and sales for your B2C business.
We also equipped you with the steps on how to use Snapchat for marketing: all winning strategies you can build on as you learn more about your audience.
Now, it’s your turn to find your potential prospects on the platform, provide value as you engage them and convert them into loyal customers. It sounds like a tall order if you have zero channel marketing experience or this might be an overwhelming suggestion if you prefer to integrate Snapchat marketing campaigns into your overall strategy. In either case, you need a trusted Snapchat agency to support you.
Thrive is a Snapchat agency with the expertise to handle your social media brand management on Snapchat. Our team of professionals can help you establish a positive brand image, effectively communicate with your target audience and reinforce customer loyalty through the app. You can choose how much you want to get involved. But you can focus on your core business while we work as your dedicated Snapchat marketing agency.
Snapchat’s sustained momentum is expected to last until the fourth quarter and likely well into 2021. So grab the opportunity to connect with the thousands of people you might not encounter on other social networks. Find out where to start by filling out this form or calling us at (866) 908-4748.