Snapchat experienced a challenging Q4 last year with disappointing ad growth and higher costs, leading to job cuts and funding reductions. However, in Q1 this year, Snap shares rebounded due to increased ad performance, new business opportunities, and a significant focus on SMBs, resulting in an 85% year-over-year increase in SMB advertisers.
Key Updates from Snap's Webinar:
- Redesigned Ad Formats: Snap has unified the look and feel of promotions to maximize intentionality behind user actions on ads.
- Enhanced AR Ad Options: New methods for brands to boost exposure for branded Lenses.
- Expanded "Total Takeover" Suite: Includes "First Story," "First Commercial," "First Lens," and a new "State-level First Story" for regional reach.
- Higher-Impact AR Product: Offers an all-day takeover of the Lens Carousel.
- Streamlined App Download Experience: Fewer taps required for app installations without leaving Snapchat.
- New Bidding Capabilities: Specifically designed for mobile gaming advertisers.
- Value Optimization Offering: Allows advertisers to bid on the value of purchases driven, not just the quantity.
- "7/0 Delivery Optimization": Bidding on click-through conversions within seven days, leading to lower cost-per-purchase and higher ROAS.
- Expanded Partner Integrations: Includes CRM partners for better data integration and optimization of lead generation products.
- Partnerships with Snowflake, Datahash, LiveRamp, Tealium: Assists with Conversions API integration for better ad performance insights.
- Landing Page View Optimization Goal: Helps marketers achieve KPIs like session volume, landing page views, and reduced bounce rates.
- Improved Machine Learning Models: Achieved over 60% lower cost for some advertisers compared to traditional click engagement models.
These updates reflect Snap's broader strategy to enhance ad performance and offer more effective tools for advertisers.
