As part of a broader effort to boost ad spending and get its business back on track, Snapchat is trying to better highlight the effectiveness of its ad products in different sectors, with a particular focus on sectors you might not expect to hit with Snapchat users.
Last year, for example, Snap shared data on the effectiveness of Snapchat ads in the financial services vertical, showing that both brand and direct response campaigns perform well on the app.
But what about other verticals, do they work well with Snap campaigns?
To test this, Snapchat recently launched another Marketing Mix Modeling (MMM) report that examines 3 years of Snap advertising data, covering 36 advertisers across five different verticals, totaling more than $15 billion in ad spend.
Those verticals were:
- trade
- Technology
- Telecommunications
- traveling
- Quick service restaurant
Some of these are the types of brands you might actually expect to perform well on the app, although telco and travel may be less focused, skewing towards a younger audience.
The final results indicate that Snap is a powerful driver of performance, and maybe, direct sales and awareness, which might give you some additional food for thought.
First, on ROAS, the data shows that Snapchat drives the highest return of all marketing channels for 3 out of 5 verticals and outperforms paid social (cumulatively) across all categories.
According to Snap:
“What does this mean for advertisers? Not only does Snapchat drive ROAS, but it does so disproportionately more than competitors. For every dollar spent on Snapchat, brands across categories should expect higher than average ROAS.“
Of course, scale is relative in this case, and you’d assume that, eventually, at some level of ad spend, these results would even out. But Snap also notes that, according to the analysis, brands could actually increase their Snap ad spend by up to 33% and still see strong results.
I am fairly skeptical of such assumptions, as they assume too much in predicting larger response patterns. But based on available data, the statistics suggest that Snap advertisers can improve their results by increasing their in-app ad budget.
The data also shows that branding campaigns can also work on Snap and are particularly effective in conjunction with direct response campaigns.
These are some interesting notes, and while the specifics are important, and the quality of the ads included in the test will relate to the final results, it’s worth noting Snap’s relative effectiveness in different sectors and for different purposes.
You can see Snap’s full report here.
