One of the significant challenges for marketers is balancing budgets between brand and performance campaigns. Snapchat, through a meta-analysis with TransUnion, evaluated the Return on Ad Spend (ROAS) to understand how brand and direct response (DR) campaigns work together.
Research Overview
- Data Scope: Over 3 years, covering 36 advertisers in sectors like Commerce, QSR, Technology, Telecom, and Travel.
- Channels: Up to 12 per category, with a total marketing investment exceeding $15 billion.
Key Findings
- ROAS Performance: Snapchat drives stronger ROAS on average compared to other paid social platforms.
- Brand vs. DR Campaigns: Both types of campaigns are effective in driving sales. Brand campaigns, particularly on Snapchat, often yield higher ROAS.
- Category Insights:
- QSR and Technology campaigns lean towards brand spend.
- Commerce, Telecom, and Travel focus more on DR campaigns.
Combined Campaign Effectiveness
Running brand and DR campaigns together on Snapchat delivers higher incremental ROAS than running them separately. For instance:
- Travel Vertical: 10% lift in ROAS.
- Tech Vertical: 9% lift.
- Telco Vertical: 8% lift.
Recommendations for Brands
- Educate Stakeholders: Highlight that brand campaigns can drive sales, especially on Snapchat.
- Concurrent Campaigns: Run brand and DR campaigns together for greater ROAS.
- Budget Allocation: Ensure sufficient spend in both brand and DR campaigns to maximize sales growth.
Expert Opinions
- Dan White, Research Consultant: Supports the blend of brand building and activation for optimal advertising returns.
- Clive Record, Dentsu: Emphasizes a connected approach to balance brand and demand for long-term outcomes.
For detailed reports, brands are encouraged to contact their Snap Sales Rep or Marketing Science Lead.
Snapchat offers tools and resources to help businesses grow through effective advertising strategies.
