Snapchat the popular photo and video messaging platform unveiled its latest ad offering. Snapchat calls the service Dynamic Ads. The latest feature allows advertisers to create customized mobile ads. And target audiences in real-time.
Advertisers on Snapchat already have access to Snap Pixel. The service offers the ability to track campaigns. And to drive purchases and sync them to product catalogs. Dynamic ads will pick items from advertisers’ product catalogs. And target them automatically to people based on their specific interests.
“Dynamic Ads now allow brands to create real-time optimized mobile ads quickly and at scale, with products showcased in visually-appealing templates that feel native to the app”, said Kathleen Gambarelli, Group Product Marketing Manager for Snapchat, on the company blog.
The feature will especially help retail businesses target ads more effectively, resulting in higher returns for brands. Through Dynamic ads, Snapchat allows users to automatically create ads in real-time, based on their product catalogs irrespective of the number of their available products. This means strong Return On Investments (ROI) and Return on Advertising Spend (ROAS) as increased personalization will allow them to target ads more effectively.
Dynamic Ads, will further boost business opportunities by tapping into the Generation Z market. Gen Z commands $1.2 trillion in purchasing power of which Snapchat reaches over 90% of 13 – 24-year-olds in America.
Snapchat users spend an average of 30 minutes a day, signing in over 20 times. This means more opportunities for businesses to reach shoppers when they are in a buying mindset.
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In the second quarter of this year alone the number of snaps created every day grew to more than 3.5 billion. Thirty-eight percent of Snapchatters age 16 years and above cannot be reached on Instagram on a daily basis, and further 49% cannot be reached on Facebook.
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Dynamic Ads comes with custom templates to showcase products without business looking elsewhere for design support. This makes it possible for businesses to create without cutting into their busy schedules. The product syncing features also comes in handy to engage audiences for prospecting or re-engaging based on the preferences of users. What this means is that Snapchat could automatically show sports gear to Snapchat users that have an interest in sports, displaying items from retailers that have uploaded their product catalogs. The new feature will sync with retailer data allowing real-time information on prices or availability in the ads that are served.
“At this time, we are seeing our Dynamic Ads campaign drive a 66% decrease in Cost Per Purchase and a 171% increase in ROAS compared to similar product-focused campaigns running in the US”, said Kim Zorn, Digital Marketing Manager at Princess Polly Clothing on the blog.
The platform also gives users complete control and transparency over their ad preferences. Users can quickly opt-out of ad customization based on their non-Snapchat activity from Ad Preferences. Dynamic Ads will increase the relevancy of ads by not targeting users with the same ads repeatedly.
Since the launch of its self-serve Ads Manager and auction two years ago, Snapchat has evolved into a platform for performance marketers. It has since then launched Snap Pixel, Product Ads, advanced optimization, Shopify integrations, and others. It also features tools for video marketers such as Snap Select and major updates to non-skip, six-second video Commercials.
Dynamic Ads becomes available globally for all Snapchat advertisers soon. But campaigns will only reach US Snapchat users at the moment. Global markets launch in the coming months. This allows businesses access to Snapchat’s 203 million active daily users. Snapchat added 13 million new active users in the second quarter this year. Its offering competes with both Google and Facebook. Both also offer dynamic ads.
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