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Snapchat and Advertising Katherine Angst, Carla Caban, Brianna Hanson, & Andrea Mosk

Author: brianna-hanson

Post on 16-Apr-2017




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  • Snapchat and Advertising

    Katherine Angst, Carla Caban, Brianna Hanson, & Andrea Mosk

  • What is Snapchat?

    - Mobile app that allows users to capture videos and pictures that self destruct after a few seconds

    - *with the exception of screen captures*

    - 3 Areas of Snapchat- Live Story- Local Story- Discover


    Figure 1. iMore. Snapchat Mobile Image

  • Who is Using Snapchat?

    - More than 60% of U.S. 13 - 34 smartphone users are Snapchatters

    - Over 100+ million daily active Snapchatters and growing

    - 5+ Billion video views every day


    Figure 2. Snapchat Monthly U.S. Users. (Snapchat Ads)

  • The 3 Vs


    Evan Spiegel, co-founder & CEO of Snapchat

  • Snapchat Timeline

    - Snapchat was first launched in July 2011

    - Personal MyStory feature was released in October 2013

    - In June 2014 direct chat, filters, and event stories were introduced

    - October 2014 saw the first Snapchat Ads

    - The Discover page was released in January 2014


    Figure 3. Timeline of Snapchat. (Timeline)

  • Snapchat Features

    - Filters- Face filters Lenses- Geotags- Sponsored Filters

    - Live Story- Local Story- Company/Celebrity accounts- Ads on Live Story- Discover page for brands

    Figure 4. Buzzfeed QR Tweet, Screen Capture, December 15, 2015

  • Costs for Advertisers

    - 2 cents per per view for 10 second ad- Approximately $400,000 worth of ad space for

    20 million views

    - 4 ad spots per story- Price changes depending on placement, more

    expensive at the beginning

    - Either choose to advertise within an event or sponsor a Snapchat story which prompts Snapchat to make a story


    Figure 5. Idea Money. (Image)

  • Costs for Snapchat

    - Unlimited space- Employee salaries

    - Software developers ($137,416 a year)- Content analysis ($29.67 an hour)

    - Privately owned company- BuzzFeed and People and other publishers

    featured on the Discover page get the channel space for free in exchange for their content, and they share ad profits with Snapchat.


    Figure 6. Snapchat Money Logo. (Logo)

  • Costs for Users

    Snapchat is a FREE app

    $.99 for replays

    30 lenses for $.99 each, only 7 free

    Figure 7. Screenshot by Katherine Angst 11.22.15


  • Why Brands Advertise on Snapchat

    Paid - Brands pay for live stories, filters, ads on stories and discover pages

    Owned - Engaging content and stories from the companys account

    Earned - Users sharing what they do, snapchats pulled from user generated content for live/local stories

    Figure 8. Screenshot by Katherine Angst 12.16.15

  • Drawbacks

    Snapchat has limited reporting capabilities

    - Can't tell how many men vs. women saw an ad- No age breakouts- Currently limited targeting

    High cost per ad


    Figure 9. Screenshot by Katherine Angst 11.27.15

  • Future of Snapchat

    - $16 billion valuation (Wagner)- Assuming a $1 billion ad revenue source

    - Facebook and Google offered Snapchat $3 billion and $4 billion respectively (Inside Snapchat)

    - Applying for an IPO- 8 rounds of equity funding (Inside Snapchat)


  • Questions?

  • ReferencesAds Snapchat. (n.d.). Retrieved December 15, 2015, from

    Johnson, L. (2015, December 15). 4 Big Developments That Show Why Snapchat Was 2015's Buzziest Platform. Retrieved December 16, 2015, from

    King, H. (2015, November 13). Why people are freaking out at Snapchat today. Retrieved December 17, 2015, from

    Magid, L. (n.d.). What Is Snapchat and Why Do Kids Love It and Parents Fear It? Retrieved December 13, 2015, from

    Miranda, C. (2015, February 9). The Evolution of Snapchat | Slice Communications - Philadelphia. Retrieved December 16, 2015, from

    Sloane, G. (2015, January 14). Snapchat Is Asking Brands for $750,000 to Advertise and Won't Budge. Retrieved December 13, 2015, from

    Snapchat Salaries. (n.d.). Retrieved December 16, 2015, from

    Wagner, K. (2015, June 17). Snapchat Is Making Some Pretty Serious Money From Live Stories. Retrieved December 15, 2015, from