Is Snapchat Ready to Play in the Major Leagues of Advertising?

At just three years of age, Snapchat has already started a revolution in advertisers’ eyes. The disappearing message app is now valued at $16 billion, reports International Business Times. Its creator and CEO, 25-year-old Evan Spiegel, has worked with marketing agencies and business partners to try out different money-making strategies now that it has captured millennial audiences around the globe. 

After all, digital is now the way to go for marketing agencies worldwide, providing Snapchat with a great advantage as it lives entirely in the world of mobile advertising. Just last week, Snapchat revealed a website explaining its target demographic: millennials. Big name advertisers are interested in Snapchat because of its intensive millennial penetration.

Nowadays, Fortune 500 companies and other brands are desperate to connect with the young population. Not only do these younger audiences have increased buying power, but they are also moving away from TV and print material. Snapchat execs have devised a plan to pitch to the world’s biggest advertisers.

However, Spiegel doesn’t just want to sell ads to brands; he wants to make ads as well. The CEO recently announced a new digital marketing agency led by Snapchat, the Daily Mail and WPP. The agency will help develop and analyze ad products. 

Marketing agencies began advertising on Snapchat’s public video feed in October 2014. Since then, advertisers and brands have hopped on the bandwagon, realizing that Snapchat has access to the audience they crave. But what does the future look like?

Snapchat certainly has an advantage over key players like Facebook and Twitter. Its ads are larger, vertical and not like typical banners. The company believes its vertical videos are more effective and engaging than horizontal videos on other social media sites, in large part because people are apparently too lazy to reorient their devices. Not coincidentally, Facebook is now experimenting with full-screen video ads. 

Advertisers and marketing agencies find it a challenge to stand out among other competitors, and that’s a major part of Snapchat’s appeal—they’re not like everyone else. Advertisers can pay for 10-second spots on the Live Story or on the Discover Network. Additionally, they can purchase sponsored stickers that users can overlay on their images or videos.  

While all this sounds great, Snapchat still has a long way to go. Consumers like to interact with trending topics, and you can’t recirculate content on Snapchat. Plus, the app currently lacks data and analysis. View counts can only account for so much. The company is on the right path, but to be able to build a business, Snapchat must find ways to measure effectiveness and accountability. 

Aubrey Andersen-Bakker writes for Fusion 360, an SEO and content marketing agency. He writes for many other clients as well.