‘More ad dollars move to Snapchat’: Why direct-to-consumer brands eye the platform as they diversify from Facebook
Direct-to-consumer brands are increasing their spending on Snapchat this year as part of the ongoing push to diversify media budgets. Media buyers say spending on Snapchat has increased roughly 10% year-over-year with the platform accounting for anywhere between 10% to 25% of media budgets now.
DTC advertisers are looking to make sure they aren’t reliant on a single platform, according to buyers who say that much of the interest has come from a need to diversify away from Facebook and Instagram as many brands have been too reliant on those channels in recent years. At the same time, brands are looking to get ahead of potential fallout caused by iOS 14 with Facebook and Instagram and understand their diversification options.
Given that Snapchat is more sophisticated than TikTok when it comes to targeting and direct response capabilities, advertisers are increasingly interested in spending more on Snapchat now. At the same time, Snapchat has done a better job of pitching DTC brands that they should be on the platform for its e-commerce capabilities, noted Duane Brown, founder and head of strategy at performance marketing agency Take Some Risk.
“In the coming months, I think we will see more ad dollars move to Snapchat,” said Katya Constantine, CEO of performance marketing agency Digishop Girl, adding that the platform’s conversion-optimized campaign capabilities make it more attractive for advertisers. “We will see more brands launch on Snapchat.”
As previously reported by Digiday, brands like Dr. Squatch have been increasing ad budgets on Snapchat as part of a diversification strategy.
“As one of the fastest growing social channels, Snapchat Ads come up in conversations with our clients a lot,” said Zach Stuck, founder and CEO of Homestead Studio, an agency that works with DTC clients. “It’s an opportunity for brands to spend more and potentially at a greater return. Less competition and lower CPMs makes that possible. And Snapchat doesn’t come with the same pitfalls as Facebook either; our reps are super responsive and helpful.”
For Stuck’s clients, the percent of spending has increased quarter-over-quarter in the last year with the majority spending between 10-15% of their overall ad budget on Snapchat now. Last year, clients were spending between 0-10% of the budget on Snapchat.
While performance marketing agencies are seeing an overall increase in interest in Snapchat now, it’s more of a mixed bag for media agencies. For clients already spending on the platform, some are more interested as part of a desire to diversify or in the platform’s augmented reality capabilities.
“For a handful of clients it is something where they want to diversify as much as possible and I think with direct response capabilities and audience targeting sophistication, Snap is definitely second best to Facebook [and Instagram] right now,” said Stef Smith, head of paid social at Dentsu Media. “So there’s one case to be made there. The other is that Snap has been really bullish on AR and I would say we see some clients leaning into that more than others.”
That being said, even as brands are eyeing Snapchat now, buyers say it’s unlikely that spending on the platform will reach the level of Facebook. Still, performance agency buyers are bullish on the platform now.
Why a leading Twitch streamer is founding her own talent management and brand consulting firm
In addition to protecting creators’ wellbeing by diversifying RTS’s revenue streams, Anys hopes to use her company to create more opportunities for female streamers and other creators in marginalized groups.
Ad execs dismayed, but not surprised, by tactics Google allegedly used to control digital ad dollars
Update: An earlier version of this article stated that there were 10 states in the U.S. involved in an antitrust lawsuit against Google, whereas its actually 14 as more were added. We have therefore amended the article to reflect this. If advertisers and publishers are rattled by the latest allegations against Google then they’re not […]
Myth buster: Hybrid working models’ biggest misconceptions
In the stampede to figure out the right hybrid-working models, misunderstandings can take root and lead to further headaches. Here is a myth buster.
SponsoredHow cloud technologies are helping media companies unlock the value of data collaboration
Bill Stratton, global head of media, entertainment and advertising vertical, Snowflake Many of today’s media businesses and advertisers are redefining their business models in response to shifts in consumer behavior and the availability of new technologies. For instance, over the past few years, content creators such as Disney, NBCUniversal and HBO have begun selling their […]
‘A fundamental failure of a national privacy law’: Acxiom CEO on what’s needed to get data back on track
Data is more vital to any marketing business than ever before, but privacy regulations are tightening to ensure consumers are protected, making data gathering just that much harder. In the middle of this tug-of-war sits Acxiom.
‘There are suspicions’: Four confessions on Google’s influence over programmatic media
In the latest in our Confessions series, we spoke to four execs about the trials and tribulations they went through to find out how far Google is willing to go to control the flow of online media dollars.