Success in a Snap A Big Brand's Guide to Snapchat Advertising 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 Facebook ushered in a fresh take on social connectivity; five years since Twitter, and a year since Pinterest and Instagram launched. However, as Evan Spiegel'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 Now 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 stories in Recent Updates, Our Stories (formerly Live), and Publisher Stories. Snap Ads always begin with a 10-second max, full-screen vertical video (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. 4 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 Google Play 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 Business Insider, 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 line. 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, Innovid, 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 messages 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 augmented reality component of the Snapchat experience, have become a favorite feature for users and advertisers alike. For users, they add an interactive element to the Snap-creation process. For brands, they are effective brand-activation mechanisms.