Performance Marketing 🤝 Snapchat
Data-Driven Marketing and Growth Insights (10/15/2024)
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In the last few weeks, we have covered developments around Meta and Google.
This week, we are back with a dark horse, Snapchat.
Snapchat is making some significant changes, leaving behind its focus on brand awareness and focusing on performance marketing. If you’re focused on performance, this is something to keep on your radar, as it could open what has been a historically poor-performing channel.
Historically, Snapchat has focused heavily on brand marketing through large campaigns by companies like Apple and Coca-Cola, designed to boost awareness and increase impressions.
Snapchat didn’t always seem like the best fit for performance marketing, whose ad dollars need to deliver more than impressions.
However, after some difficult years in the market and a clear shift of the industry toward performance marketing, Snapchat has been focusing on direct-response ads, which it wants to use to help businesses drive incremental performance from their ads.
And honestly, it’s a move that could open up enormous opportunities.
CEO Evan Spiegel has been discussing this extensively, especially in recent earnings calls. The platform is focusing on measurable actions—like sign-ups and purchases—to help businesses, particularly SMBs, achieve real, trackable outcomes from their campaigns.
And it’s paying off in a big way.
Their direct-response ad revenue jumped 17% year-over-year, and they’ve seen an 85% increase in active advertisers from the SMB sector.
Snapchat’s new tools, like the Conversions API and Estimated Conversions, are allowing businesses to optimize for bottom-of-the-funnel metrics, making it easier to optimize for the actions that matter most.
For performance marketers, this shift means that Snapchat is no longer just a branding platform for big companies. It’s evolving into a space where businesses of all sizes can drive growth, delivering strong ROI by focusing on driving conversions.
Snapchat is also building a more stable revenue stream. Instead of relying on unpredictable brand deals, it’s forging longer-term relationships with businesses that see ongoing returns from performance-driven ads.
It’s a win for both businesses and the platform.
This move is worth watching, especially since platforms like Twitter could learn a thing or two from Snapchat’s success in performance marketing.
So, if Snapchat wasn’t on your radar before, it might be time to look at it. This new focus on driving results – not just impressions – could be a massive opportunity for early movers.
