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Success in a Snap A Big Brand's Guide to Table of Contents

SNAPCHAT: THE START OF SOMETHING NEW

A GLIMPSE AT SNAPCHAT’S AD UNITS Snap Ads Geofilters Sponsored Lenses

SNAPCHAT TARGETING Audience Targeting Lifestyle Targeting Snap Audience Match Snapchat Lookalikes Oracle DLX Targeting

THE FUTURE OF SNAPCHAT Snapchat: The Start of US SNAPCHAT USERS, BY AGE Something New

In 2011, the social ecosystem seemed to be reaching its saturation point.

It had been nearly 10 years since LinkedIn commenced the post-Myspace era; seven years since ushered in a fresh take on social connectivity; five years since , and a year since and launched.

However, as 's junior year of college ended, and Bobby Murphy’s graduation neared, the current CEO and CTO of Snap Inc. had something brewing. They called it Snapchat.

Snapchat has over 161 million daily active users (DAUs).

Today, Snapchat has over 161 million daily active users (DAUs).1 What's more, Snap shows no signs of slowing. According to eMarketer, Snapchat’s user base will grow by double digits through 2018.2

1 Bloomberg, 2016 2 eMarketer, 2016 3 2 Why Work with a Snapchat Ads API The demographic makeup of its user base is likely to grow as Partner Like Brand Networks? well as it attempts to appeal to more generations. As a result, Snapchat has gone from a must-have app for (( Access to one of the only self-service Snapchat millennials to a must-have social advertising channel for the advertising tools on the market world's biggest brands, including Gatorade, (Red), RetailMeNot, Kraft, and bareMinerals.* (( Ability to test unlimited creative throughout the campaign lifecycle Since Snapchat debuted advertising capabilities in 2014, the possibilities have continued to mount. As a result, it is important (( Ability to make unlimited targeting that advertisers stay current on the latest Snapchat tools and optimizations throughout the campaign strategies to ensure they are making the most of the channel. lifecycle Here’s everything you need to know.

(( Exclusive access to real-time reporting, reporting visualization, pacing visualization, daily spend summary, and more

(( Access to partner-specific features and specialization like Brand Networks’ dynamic reporting and award-winning technologies like Optimize and Open Signals

* Gametime, Hollister, bareMinerals, (Red), RetailMeNot, Gatorade, and Kraft Macaroni & Cheese are not Brand Networks clients. These case studies are included with permission from Snap, Inc. 3 A Glimpse at Snapchat’s Ad Units

Snapchat has three ad types to help advertisers reach a variety of advertising goals: Snap Ads, Geofilters, and Lenses.

SNAP ADS

With placement supported across the application, Snap Ads are the foundation of Snapchat’s advertising ecosystem. Snap Ads appear between user in Recent Updates, Our Stories (formerly Live), and Publisher Stories. Snap Ads always begin with a 10-second max, full-screen vertical (see inventory options to the right).

What makes Snap Ads widely applicable is that they can include a swipe-up feature, which expands the experience and represents an excellent sign of intent. By adding the swipe-up feature, advertisers can prompt users to view an article, install a mobile app, visit a mobile website, or watch a longer video. This helps advertisers run more campaigns From left to right, Snap Ad placement includes that better drive toward their business between user stories in Recent Updates, Our objectives. Any additional time users spend with the brand Stories, and Publisher Stories. as a result of a swipe comes at no additional charge.

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5 Where Snap Ads May Industry Insight: Appear Via the Brand Networks Platform, advertisers can optimize their campaigns by leveraging Snapchat’s machine-learning capabilities and goal-based bidding to 3 BETWEEN USERS’ STORIES better drive toward their business objectives. Snap Ads appear as "commercial Advertisers can choose to include the swipe-up feature for any of the following breaks" between users’ Stories. objectives:

OUR STORIES APP INSTALL Snap Ads appear between near App Install ads let users install real-time looks into live events a brand’s mobile app without like the Macy’s Thanksgiving Day leaving the Snap Ad. Snap Ads for Parade. app install work with and the Apple App Store. PUBLISHER STORIES Snap Ads appear between Performance Metrics: content from publishers like CNN Reach and frequency, swipe- and Cosmopolitan in Snapchat’s up rate, top Snap view-through publisher-centric virtual by quartile, number of installs newsstand. (Android & iOS), top Snap average time viewed, plus post-install Note: Auction-based campaigns metrics. cannot target or exclude specific ad placement, nor does Snapchat report Snap Ads App Install Case * on where ads were served. Brand Study: Gametime Networks does provide a broad range Gametime, a popular mobile app that helps people find tickets to live events, of performance metrics specific to the ran a App Install campaign to build brand awareness and drive significant app Snap Ads ad type used. installs. The campaign received over 1 million views and over 14 thousand app installs.4

3 , 2016 * Gametime, Hollister, bareMinerals, (Red), RetailMeNot, Gatorade, and Kraft Macaroni & Cheese are not Brand Networks clients. These case studies are included with permission from Snap, Inc. 4 Snapchat Success Stories, 2016 5 WEB VIEW Web View ads take users to a pre-loaded, full-screen mobile website selected by the advertiser.

Performance Metrics: Reach and frequency, swipe-up rate, top Snap average time viewed, top Snap view- through by quartile, average time on site, plus the opportunity to use third-party tracking tags and custom tracking parameters.

Snap Ads Web View Case Study: Hollister* Popular clothing brand, Hollister partnered with Snap to drive traffic to a strategic page on its website highlighting the arrival of its summer clothing . Using Snap Ads, users could swipe-up following the video to view the new summer line. The campaign generated an engagement rate of 11% and users spent twice as much time on the website than they would have if they had to wait for the site to load.5

LONG-FORM VIDEO Long-form video ads take users to extended video content of up to 10 minutes in length.

Performance Metrics: Reach and frequency, top Snap average time viewed, top Snap view-through by quartile, swipe-up rate, long-form video average time viewed, long-form video view-through by quartile.

Snap Ads Long-Form Video Case Study: bareMinerals* Cosmetics brand bareMinerals chose to showcase a new product on Snapchat and provide a step-by- step guide on how to use it. Using a Snap Ads Long-Form Video campaign targeting Snapchat’s Women’s Lifestyle Audience, the campaign delivered a 15% swipe-up rate and a two-fold increase in search traffic for the product on the bareMinerals website.6

* Gametime, Hollister, bareMinerals, (Red), RetailMeNot, Gatorade, and Kraft Macaroni & Cheese are not Brand Networks clients. These case studies are included with permission from Snap, Inc.

5 Snapchat Success Stories, 2016 6 Snapchat Success Stories, 2016 6 Looking for More Insight into Campaign Performance?

Advertisers can leverage third-party tracking In addition to the Snap Ads currently supported by Brand Networks and from Google DoubleClick, , MOAT, and surfaced in the Brand Networks Platform, Snapchat also offers a range others to get a more detailed look at how their of other ad types supported directly by Snap. Let’s take a closer look. ads are performing. Additionally, measurement studies through Millward Brown are available. GEOFILTERS Snapchat maintains a complete list Geofilters are location-based artistic overlays of supported third-party tracking and Snapchat users add to their Snaps. Snapchat measurement companies, but what follows is currently offers Sponsored Geofilters for the full list at the time of publication: national and global brands and On-Demand TRACKING & VERIFICATION Geofilters to all advertisers, available natively without an Ads API partner. Regardless • Innovid of which option you choose, Geofilters • Sizmek seamlessly insert brand into • DoubleClick by Google Snaps every day. To put this in perspective, a • Moat National Sponsored Geofilter reaches 40% to 60% of daily Snapchatters on average.7 AUDIENCE INSIGHT & REACH • Millward Brown Digital • Nielsen Here’s how Geofilters work:

AD IMPACT & RESONANCE 1.) Create a compelling design according to Snapchat’s guidelines • Millward Brown Digital 2.) Define when and where the Geofilter will be available • Nielsen 3.) When a Snapchat user is within the selected geographic area during SALES LIFT & ROI the allotted time, they can choose to add the overlay to their Snaps

• Datalogix Performance Metrics

ONLINE ATTRIBUTION Total swipes uses, total views, total uses/swipes, total reach, unique • Adjust swipes, unique uses, unique views, unique uses/swipes, unique reach. • Apps Flyer • Apsalar • Kochava • Tune 7 Snapchat, 2017 7 7 A National Sponsored Sponsored Geofilter Case Study #1: Geofilter reaches 40% to (Red)* partnered with Snap to join the fight against AIDS. 60% of daily Snapchatters Using Sponsored Geofilters, (Red) reached more than 14 million users. The campaign led to a 2.8X increase in on average. brand awareness compared to mobile campaign averages. Impressively, the campaign also reported that those who used the Geofilters were 90% more likely to donate.8

Sponsored Geofilter Case Study #2: To augment a holiday campaign, RetailMeNot* used Sponsored Geofilters to reach and engage millennial shoppers. Creating four different Geofilters, and deploying them across 3,000 malls in the U.S., the Sponsored Geofilters reached 11 million users.9

SPONSORED LENSES Sponsored Lenses, an component of the Snapchat experience, have become a favorite feature for users and advertisers alike. For users, they add an interactive to the Snap-creation process. For brands, they are effective brand-activation mechanisms. According to Snap, users engage with Sponsored Lenses for an average of 20 seconds.10 Currently, Sponsored Lenses can only be run nationally.

* Gametime, Hollister, bareMinerals, (Red), RetailMeNot, Gatorade, and Kraft Macaroni & Cheese are not Brand Networks clients. These case studies are included with permission from Snap, Inc.

8 Snapchat Success Stories, 2016 9 Snapchat Success Stories, 2016 10 Snapchat, 2017 8 8 Reporting Metrics: Total plays, total uses, total views, total uses/swipes, total reach, unique plays, unique uses, unique views, unique reach, unique use/play, unique play time, direct Snap uses, direct views, direct views/use, story uses, story views, story views/use.

Sponsored Lenses Case Study #1: Gatorade* used a Sponsored National Lens to bring the excitement of the Super Bowl to smartphones. Playing off of the iconic Gatorade dunk following a victory was viewed 165 million times and increased purchase intent by 8 points.11

Sponsored Lenses Case Study #2: Kraft Macaroni & Cheese* created a playful Lens to complement its existing efforts, while increasing purchase intent and reaffirming brand perception. In total, users engaged with the Sponsored Lens for an average of 20 seconds, which help lift purchase intent by 13%.12

* Gametime, Hollister, bareMinerals, (Red), RetailMeNot, Gatorade, and Kraft Macaroni & Cheese are not Brand Networks clients. These case studies are included with permission from Snap, Inc.

11 Snapchat Success Stories, 2016

12 Snapchat Success Stories, 2016 9 Snapchat Targeting

Snapchat’s targeting capabilities are most easily explained by breaking them down into two groups: Audience Targeting and Lifestyle Targeting.

Advertisers can also use Snap Audience Match, Lookalikes, and Oracle DLX Audiences to further refine their audience targeting. Collectively, these targeting opportunities constitute a robust and comprehensive set of opportunities to reach the audiences that matter to an advertiser’s business.

AUDIENCE TARGETING • Age: 13-17, 18-20, 21-24, 25-34, 35+ • Gender: Male/Female • Country/State/DMA: Target audience in the United States, Canada, United Kingdom, , Germany, Mexico, Brazil, Australia, Norway, and Saudi Arabia, plus 14 other currently supported countries • Device/Connectivity/Carrier: Reach users by Android or iOS, by WiFi or cellular connectivity, or by wireless carrier

10 LIFESTYLE TARGETING • Women's Lifestyle • College Life • Comics & Cartoons • Bookworms & Avid Readers Snapchat supports an ever-expanding • Photographers • Fashion & Style Gurus list of lifestyle category targeting • College Life • Hip Trends options. • Bookworms & Avid Readers • Nightlife LIFESTYLE/HOBBIES • Hipsters & Trendsetters • Techies & Gadget Fans • Nightlife • Travel Enthusiasts • Adventure Seekers • Techies & Gadget Fans • Running Enthusiasts • Arts & Culture Mavens • Travel Enthusiasts • Automotive Enthusiasts • Parents & Family-Focused NEWS & ENTERTAINMENT • Beachgoers & Surfers • Outdoor & Nature Enthusiasts • Film & TV Fans • Beauty Mavens • Pets & Animal Lovers • Comedy Fans • Cable & Satellite Subscribers • Reality TV Fans • Clubbers & Nightcrawlers ACTIVITIES & SPORTS • Gamers • Collegiates • Sports Fans • Serious Gamers • Comics & Animation Fans • American Football Fans • News Watchers • Cord Cutters • Baseball Fans • Business News Watchers • Cooking Enthusiasts • Basketball Fans • Celebrity News Watchers • Do-it-Yourselfers • College Football Fans • Political News Watchers • Fashion & Style Gurus • Fight & Wrestling Fans • Sci-fi & Fantasy Fans • Fast Food Junkies • Golfers • Fitness Enthusiasts • Hockey Fans MUSIC • Foodies • Motor Sports Fans • Music Fans • Streaming Video • Sport Enthusiasts • Concert & Festival Goers • Science Fiction & Fantasy • Soccer Enthusiasts • Country Music Fans • Green Living Enthusiasts • Street Sport Enthusiasts • Dance & Electronic Music Fans • Home Décoristas • Tennis & Racquet Enthusiasts • Pop Music Fans • Investors & Entrepreneurs • Women's Lifestyle • Urban & Hip-Hop Music Fans • Math & Science Enthusiasts • Comics & Cartoons • Indie & Alternative Music Fans • Men's Lifestyle • Photography

11 SNAP AUDIENCE MATCH DLX Advanced Demos

Using email addresses or mobile app IDs, advertisers can DLX Advanced Demos allow advertisers to boost upload hashed CRM data to create precision audiences for demographic targeting by tapping into precise online targeting on Snapchat. They can also work with Audience audiences created from multi-sourced verification data Match API Partners to make audiences available. Exclusion from the U.S. Census, the DMV, public records, and more. targeting is also available to suppress audiences that shouldn’t be targeted in campaigns. DLX ADVANCED DEMOS: • College Graduates SNAPCHAT LOOKALIKES • HHI: 100-250k Lookalike audiences let advertisers target Snapchatters who • HHI: 250k+ share characteristics with existing customers by uploading • HHI: 50k-75k hashed CRM data and allowing Snap to expand audiences • HHI: 75-100k by adding users with similar characteristics. • HHI: <50k • Married People ORACLE DLX TARGETING • Parents • Moms Oracle’s DLX Advanced Demos and DLX Shopper Audiences • Moms (grade school) can be used standalone or as a featured part of a larger • Moms (high school) targeting strategy. By taking offline data and attributing it to • Moms (preschool) Snapchat ad campaigns, advertisers can improve the quality • New Moms and accuracy of the audiences they reach. • New Parents • Spanish Speakers

12 DLX Shopper Audiences • Small & Mid-size SUV Shoppers DLX Shopper Audiences comprise audiences built from data • Sports Car Shoppers of over 115 million households, over 10 billion SKU-level transactions, over 1,500 leading retail brands, and over 250 CHILDREN'S PRODUCT SHOPPERS data points. Simply put, Shopper Audiences leverage past • Baby Product Buyers purchase behavior to predict future buying behavior. From • Toy Shoppers here, advertisers can target audiences accordingly. ECO-CONSCIOUS SHOPPERS DLX SHOPPER AUDIENCES: ENTERTAINMENT SHOPPERS • Apparel Shoppers • Casual & Mobile Game Shoppers • Children's Apparel Shoppers • Console Game Shoppers • Jewelry Shoppers • Movie Theater Goers • Luxury Apparel Shoppers • Spenders • Men's Apparel Shoppers • Women's Apparel Shoppers GROCERY SHOPPERS • Beer Buyers AUTOMOTIVE SHOPPERS • Coffee Consumers • Compact & Economy Vehicle Shoppers • Energy Drink Shoppers • Crossover Vehicle Shoppers • Frozen Food Shoppers • Full-size SUV Shoppers • Healthy Food Shoppers • Full-size Sedan Shoppers • Household Supply Shoppers • Hybrid & Alternative Vehicle Shoppers • Liquor & Spirits Buyers • Low Fat Food Shoppers • Luxury SUV Shoppers • Meat & Seafood Shoppers • Luxury Sedan Shoppers • Salty Snack Shoppers • Mid-size Car Shoppers • Soft Drink Shoppers • Minivan Shoppers • Sports Drink Shoppers • Motorcycle Owners • Vegetarian & Organic Shoppers • Pickup Truck Owners • Wine Buyers • Pickup Truck Shoppers

13 HOME & GARDEN SHOPPERS RETAIL SHOPPERS • DIYers • Big Box & Superstore Shoppers • Home Improvement Shoppers • Consumer Tech Shoppers • Home Owners • Deal & Value Shoppers • Home Renters • Department Store Shoppers • Discount Store Shoppers MONEYMINDERS • Gift Shoppers • Car Insurance Shoppers • Luxury Shoppers • Investment Service Shoppers • Online Shoppers • Mortgage Shoppers TRAVELERS MOVERS • Budget Travelers • New Movers • Business Travelers • Pre-Movers • Cruise Seekers • Frequent Travelers PERSONAL CARE SHOPPERS • Leisure Travelers • Cosmetics Shoppers • Luxury Travelers • Hair Care Product Shoppers • Luxury Beauty Product Shoppers • Men's Grooming Supply Shoppers • Skin Care Product Shoppers

PET OWNERS • Cat Owner • Dog Owner

PHILANTHROPISTS

RESTAURANT-GOERS • Casual Diners • Fast Food Diners

14 The Future of Snapchat

Snapchat’s rise from new kid on the block to social stardom has been fun to watch. When you consider its growing user base and engagement rates, it’s understandable why so many are bullish on Snap. We certainly are.

While Snapchat is still relatively new to advertising, its commitment to creating a high-quality advertising ecosystem is evident. With innovative ad types, enhanced measurement tools, and a clear focus on user experience, the future of Snapchat seems bright.

As Snapchat continues to impress the adtech community, competition from other social channels will only increase. For Snap, continued success relies on continued innovation—something that it’s already proven capable of. For advertisers, success relies on keeping up, because we promise you one thing: Snap isn’t going to slow down. So, batten down the hatches, this is just the beginning.

Ready to learn more? Contact us today.

15 ABOUT BRAND NETWORKS

Brand Networks Simplifies SocialTM. The company delivers award-winning advertising software and services to hundreds of enterprise customers, including half of the Fortune 100 and 17 of AdAge’s 25 Most Advertised Brands. The Brand Networks Platform uses personalization data and powerful automation technologies to help marketers optimize their media investments across the social web. Media buyers can reduce campaign management time by up to 75% while increasing their return on advertising spend across Facebook, Instagram, Twitter, Pinterest, LinkedIn, and Snapchat. Brand Networks was founded in 2006 and is headquartered in Boston with offices in San Francisco, New York City, Rochester, Los Angeles, Chicago, and Sydney. For more information, please visit bn.co. THE BRAND NETWORKS PLATFORM

Brand Networks offers a social advertising platform that simplifies social. Teams use it to plan, optimize, and automate paid social media across thousands of social touch points every hour of every day. The Brand Networks Platform features award-winning technology that helps marketers manage their advertising investments and find ROI across all of the top social channels. With this technology, brands and agencies can cut campaign management time in half while doubling ad performance.

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