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

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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

    Source: http://www.forbes.com/sites/larrymagid/2013/05/01/what-is-snapchat-and-why-do-kids-love-it-and-parents-fear-it/

    Figure 1. iMore. Snapchat Mobile Image

    http://www.forbes.com/sites/larrymagid/2013/05/01/what-is-snapchat-and-why-do-kids-love-it-and-parents-fear-it/https://www.google.com/search?q=snapchat&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjRjL2ty-PJAhWF0h4KHeyiCGEQ_AUICSgD&biw=1280&bih=752#imgrc=jz0q-y4w7_tlDM%3Ahttps://www.google.com/search?q=snapchat&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjRjL2ty-PJAhWF0h4KHeyiCGEQ_AUICSgD&biw=1280&bih=752#imgrc=jz0q-y4w7_tlDM%3A

  • 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

    Source: https://www.snapchat.com/ads

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

    https://www.snapchat.com/adshttps://www.snapchat.com/ads

  • The 3 Vs

    Source: https://www.snapchat.com/ads

    Evan Spiegel, co-founder & CEO of Snapchat

    http://www.youtube.com/watch?v=9JYZqg0511Mhttps://www.snapchat.com/ads

  • 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

    Source: http://slicecommunications.com/the-evolution-of-snapchat/

    Figure 3. Timeline of Snapchat. (Timeline)

    http://slicecommunications.com/the-evolution-of-snapchat/https://www.google.com/search?q=snapchat&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjRjL2ty-PJAhWF0h4KHeyiCGEQ_AUICSgD&biw=1280&bih=752#tbm=isch&q=snapchat+cost&imgrc=YjTowlcHrgty-M%3A

  • 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

    Source: http://recode.net/2015/06/17/snapchats-making-some-pretty-serious-money-from-live-stories/

    Figure 5. Idea Money. (Image)

    http://recode.net/2015/06/17/snapchats-making-some-pretty-serious-money-from-live-stories/https://www.google.com/search?q=snapchat&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjRjL2ty-PJAhWF0h4KHeyiCGEQ_AUICSgD&biw=1280&bih=752#tbm=isch&q=cost&imgdii=nb-_WmSVXYMa8M%3A%3Bnb-_WmSVXYMa8M%3A%3Bj13pS_QiennpTM%3A&imgrc=nb-_WmSVXYMa8M%3A

  • 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.

    Source: https://www.glassdoor.com/Salary/Snapchat-Salaries-E671946.htm

    Figure 6. Snapchat Money Logo. (Logo)

    https://www.glassdoor.com/Salary/Snapchat-Salaries-E671946.htmhttps://www.google.com/search?q=snapchat&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjRjL2ty-PJAhWF0h4KHeyiCGEQ_AUICSgD&biw=1280&bih=752#tbm=isch&q=snapchat+cost&imgrc=TTPnkEzKCqTtzM%3A

  • 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

    Source: http://money.cnn.com/2015/11/13/technology/snapchat-lenses-rage/

    http://money.cnn.com/2015/11/13/technology/snapchat-lenses-rage/

  • 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

    Source: http://www.adweek.com/news/technology/snapchat-asks-brands-750000-advertise-and-wont-budge-162359

    Figure 9. Screenshot by Katherine Angst 11.27.15

    http://www.adweek.com/news/technology/snapchat-asks-brands-750000-advertise-and-wont-budge-162359

  • 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)

    Souce: http://www.adweek.com/news/technology/4-big-developments-show-why-snapchat-was-2015s-buzziest-platform-168570

    http://www.adweek.com/news/technology/4-big-developments-show-why-snapchat-was-2015s-buzziest-platform-168570

  • Questions?

  • ReferencesAds Snapchat. (n.d.). Retrieved December 15, 2015, from https://www.snapchat.com/ads

    Johnson, L. (2015, December 15). 4 Big Developments That Show Why Snapchat Was 2015's Buzziest Platform. Retrieved December 16, 2015, from http://www.adweek.com/news/technology/4-big-developments-show-why-snapchat-was-2015s-buzziest-platform-168570

    King, H. (2015, November 13). Why people are freaking out at Snapchat today. Retrieved December 17, 2015, from http://money.cnn.com/2015/11/13/technology/snapchat-lenses-rage/

    Magid, L. (n.d.). What Is Snapchat and Why Do Kids Love It and Parents Fear It? Retrieved December 13, 2015, from http://www.forbes.com/sites/larrymagid/2013/05/01/what-is-snapchat-and-why-do-kids-love-it-and-parents-fear-it/

    Miranda, C. (2015, February 9). The Evolution of Snapchat | Slice Communications - Philadelphia. Retrieved December 16, 2015, from http://slicecommunications.com/the-evolution-of-snapchat/

    Sloane, G. (2015, January 14). Snapchat Is Asking Brands for $750,000 to Advertise and Won't Budge. Retrieved December 13, 2015, from http://www.adweek.com/news/technology/snapchat-asks-brands-750000-advertise-and-wont-budge-162359

    Snapchat Salaries. (n.d.). Retrieved December 16, 2015, from https://www.glassdoor.com/Salary/Snapchat-Salaries-E671946.htm

    Wagner, K. (2015, June 17). Snapchat Is Making Some Pretty Serious Money From Live Stories. Retrieved December 15, 2015, from http://recode.net/2015/06/17/snapchats-making-some-pretty-serious-money-from-live-stories/