Snapchat rolled out its first advertising campaign in October 2014. If $485.6 million in funds from investors is any indication, people are betting on Snapchat in 2015.
According to Bloomberg, Snapchat is now valued at $10 billion. Many scoffed at Snapchat’s decision not to sell to Facebook for $3 billion back in 2013, but now the decision seems quite wise, after all. But how does Snapchat plan to make money in 2015, and will advertisers buy it?
The first paid media campaign in October 2014 was an ad promoting the horror film “Ouijo” that appeared in the updates feed with a “Sponsored” label. I think it was a smart decision for Snapchat to start with a video ad format that’s already familiar to advertisers, so more might be willing to get their feet wet. And companies like Taco Bell, McDonald’s, GrubHub and Acura are taking the bait.
Eric Murphy of Business2Community points out that not only does Snapchat offer a highly sought-after demographic of 13-25 year olds, it also offers a fully opt-in experience whereby consumers will interact with only the brands they choose (unlike Facebook and Twitter, where we see ads we may or may not be interested in).
Today advertisers expect to be able to buy a personal, one-to-one ad opportunities, and Snapchat certainly fits the bill. Snapchat is trying to differentiate itself from other social media giants by saying no to “creepy and targeted” ads in lieu of putting the consumer in charge. “We want to see if we can deliver an experience that’s fun and informative, the way ads used to be,” Snapchat wrote on its blog on October 17th.
What’s tricky for advertisers is that many of us don’t use Snapchat, so it’s harder to fully understand how it fits into the lives of millions of teens and twenty-somethings today. But with new ad opportunities from Snapchat that are sure to roll out this year, it’s clear that Snapchat is the new kid in town—and not leaving any time soon.
Further reading:
- ‘Snapchat closes out 2014 by raising a ton of cash’ via The Verge
- ‘Snapchat’s First Advertiser: Messaging Service Is Like TV’ via AdvertisingAge
- ‘3 Reasons Why Your Brand Will Be on Snapchat by 2015’ via Business2Community.com
- ‘Advertising on Snapchat’ via Snapchat Blog
-Posted by Elizabeth Pace–
aspiringCMO 