Snapchat, founded in 2011 and generated no revenue until 2013, is just beginning an aggressive monetization strategy that is expected to bring in $500 million to $1 billion in revenue in 2017.
Savvy advertisers are flocking to the app because of its uniquely young userbase and impressive reach and engagement rates. Snapchat boasts an astounding 10 billion daily video views from its 150 million daily active users. The brand impact is equally impressive: Snapchat sees 2x the visual attention and purchase intent compared to other social platforms.
Though the numbers are impressive, Snapchat is still in its early stages and those currently using the platform gain a distinct advantage. Marketers brave enough to invest in a nascent platform are rewarded with reach and engagement unparalleled on other networks.
Snapchat has released a number of key updates for advertisers this year with the intention of making the app more hospitable for brands. Here's a rundown of major improvements for Snapchat advertisers:
Snapchat Partner Program
Snapchat announced their Partner Program in June to improve sale of ad space, campaign measurement and content creation.
1. Ads partners: develop software for Snapchat advertisers to enable buying, optimizing, and analyzing campaigns.
2. Measurement partners: weigh campaign effectiveness for advertisers
3. Creative partners: create social content in the app's vertical video format, called 3V.
Enhanced measurement tools
Some of Snapchat's earliest advertisers' biggest concerns was the lack of measurement and visibilty of campaign performance. Previously, advertisers could only see the view count and number of screenshots per post. Under pressure to improve its measurement tools, Snapchat has partnered with a number of firms to boost their analytic capacities.
Viacom ad sales partnership
Snapchat initially venutured into third party partnerships with an agreement with Viacom, owner of Comedy Central and MTC, who was contracted to sell ad space on their property's Discover channels. This was clearly a move to accelerate ad sales on Discover feeds, and begun Snapchat's move towards third party ad sales.
Previously, only a few select brands were able to produce geofilters, one of Snapchat's most popular products, but now all users and businesses can design and upload their own filter. Prices for the product depend on the size of the geographical area and length of time the filter is acive.
Snapchat's monetization strategy has been aggressive, though it looks like it'll pay off: Snapchat is positioning themselves as the new hot property for brands looking to corner a younger demographic. With improved analytics and ad sales, the app is more hospitable for advertisers than ever before, and is bound to continue to improve.