Snapchat Marketing and Advertising for Business Growth

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2024-05-16

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Snapchat is a popular social media platform known for its engaging and innovative features like Stories and Augmented Reality. Launched in 2011, Snapchat has quickly become a favorite among younger demographics.

 

The platform’s unique way of sharing disappearing photos and videos makes it different from everything else that users have access to, which creates a useful advantage for businesses of various sizes looking to connect with a young and active audience. If you’re curious to learn more about the key benefits of using Snapchat for advertising and marketing, tune in and discover how you can use the platform to grow your business. By the end, you'll see why Snapchat should be part of your marketing strategy.

 

Understanding Snapchat’s unique audience

Although Snapchat does not have as many active users as social media giants like Meta, YouTube, or TikTok, it still has more than 800 million active users worldwide, based on the most recent Investor Presentation’s data.

Most popular socia media platforms chart

Source: Stacy Jo Dixon on Statista

 

Snapchat has always focused on providing a fun experience to its young users, adopting AI features earlier than many social media giants. That’s why the platform is popular among Gen Z users: 51% of Gen Z use Snapchat in the US alone, which is a higher percentage than for other popular platforms with video content like TikTok or Instagram. A significant number of Millennials also use it more than other platforms like Facebook, which shows that Snapchat is truly one of the best places to reach young demographics.

The number of daily active users on Snapchat

Source: Snap Inc. Investor Deck (pdf)

 

Here are some key things to remember when considering Snapchat for marketing and advertising purposes:

  • Social activity: Snapchat users tend to open the app almost 40 times per day, sharing the moments of their lives with friends and family;
  • Advertising success rates: people on Snapchat are 34% more likely to purchase things after seeing ads on the platform; Sharing purchases: Snapchat is the most popular app for people to show off what they've bought;
  • Brand recommendations: people on Snapchat are 45% more likely to suggest brands to their friends;
  • Gift sharing: Snapchat users are twice as likely to talk about gifts they've received compared to users on other platforms.

Now, let’s check the facts about Snapchat users’ demographic characteristics and regional differences:

This data shows that Snapchat can be a great (even if often overlooked) platform for your marketing and advertising efforts. It provides not only an opportunity for paid promotion but also an avenue for organic word-of-mouth marketing and user-generated content that can significantly impact brand visibility and engagement.

 

Now, let’s get more specific and consider the key reasons why you might want to use Snapchat for advertising and marketing if you want to grow your business online.

 

The benefits of Snapchat marketing and advertising for businesses

1. Reaching young audiences

As we’ve shown before with statistics, Snapchat is quite popular among young generations, which makes it a great platform for businesses with target audiences that consist of Gen Z or Gen Alpha.

 

There are several reasons why you might use Snapchat to reach young customers:

  1. Massive user base: Snapchat has a huge user base, and a significant portion of it consists of young people, especially teenagers and young adults. These users are active daily on the platform, spending hours snapping, chatting, and watching stories. So, if you want to connect with this demographic, Snapchat is where you need to be;
  2. Cultural relevance: young people often set trends and drive cultural conversations. By being present on Snapchat, you're tapping into a space where these conversations happen in real-time. It's like being part of the in-crowd and staying ahead of the curve in terms of what's cool and trendy;
  3. Digital natives: today's youth are digital natives – they've grown up with smartphones and social media. They're comfortable using technology to communicate, share content, and make purchasing decisions. Snapchat is ingrained in their daily routine, making it an effective channel to engage with them on their terms;
  4. Influence on purchasing decisions: while young people might not have as much disposable income as older demographics, they have significant influence over family spending and are early adopters of new products and trends. If you can capture their attention and loyalty on Snapchat, you're not just reaching them – you're also influencing their purchasing decisions and shaping their brand preferences for the future;
  5. Long-term brand loyalty: building brand loyalty early on can pay off in the long run. Young audiences who engage with your brand on Snapchat are more likely to become loyal customers as they grow older. By establishing a positive relationship with them now, you're investing in the future success of your brand.

Reaching young audiences on Snapchat isn't just about connecting with a demographic – it's about tapping into a dynamic, influential, and digitally savvy market that can drive brand awareness, engagement, and loyalty for years to come.

 

2. Engaging content formats

The platform’s audience is not only young but also highly engaged, which makes Snapchat marketing a great strategy for reaching your existing and potential customers.

 

There are five so-called ‘core platforms’ or content formats that are meant to deliver the best Snapchat experiences to the platform’s users:

1. Camera

The Snapchat Camera is not just any camera – it's special because it can do more than just take pictures or videos. It has additional AR features that can make your photos and videos more fun. For example, you can add funny filters or animations to them to increase engagement rates.

 

Lots of people use these AR features every day, with over 300 million Snapchatters using them regularly. In fact, most people who try Snapchat for the first time use these AR features on their very first day. This shows how using Snapchat Camera can make your photos and videos more lively, creating opportunities for promoting your business in a way that appeals to young audiences.

Snapchat content formats

Snapchat provides plenty of opportunities for businesses to reach their customers through engaging content. 

2. Chat

Chatting on Snapchat is a fun and quick way for users to talk with friends and family, and your business to connect with customers. By using the Chat feature, you can send messages, photos, and videos easily through the Chat tab.

 

Using chat on Snapchat can have several benefits for your business:

  1. Talk directly with young audiences: since Snapchat is popular among young people, you can chat with them directly, providing the necessary information and fostering deeper relationships;
  2. Get personal: you can send customized messages, pics, or videos to your followers, making them feel special and making your business come across as more authentic;
  3. Be creative: you can use Snapchat's fun tools like filters and stickers to make your messages interesting and fun. Share stories and snaps: you can show off your business through Stories and Snaps to reach lots of people with engaging but temporary content;
  4. Give special deals: you can offer exclusive discounts or sneak peeks to your Snapchat followers to keep them interested. Quick replies: you can answer questions or help out your followers in real-time through chat;
  5. See the outcomes of your efforts: Snapchat gives you stats on who's watching your Stories and engaging with your content, helping you understand your audience better.

Whether you're chatting one-on-one or in a group, it can be a great way to stay connected to your audience and provide them with necessary information if they need it. Using chat on Snapchat also helps your business share details about your business and even offer special deals.

 

3. Stories

Snapchat Stories is the best way for users to share what's happening in their lives with their friends: they can post pictures and videos of their day, and their friends can watch them whenever they want. Plus, they can discover fun and interesting content from creators and media partners all over the world.

 

Here’s how Snapchat stories work:

  1. Making a story: you take pictures or videos, add things that will increase engagement, like stickers or text, and put them in a sequence;
  2. Watching stories: your friends and followers can see your Story by tapping on your profile picture. They can also see Stories from other people they follow;
  3. Interacting and chatting: people can watch your Story, react with emojis, send you messages, or take screenshots. Stories don't last forever: your Story disappears after a day, so it's like a mini-movie that's here today, gone tomorrow;
  4. Checking performance: if you're promoting a business, you can see how many people viewed your Story and how they interacted with it;
  5. Advertising opportunities: brands can pay to put their Stories in front of Snapchat users, blending in with regular Stories for a seamless experience.

With over 880 publisher partners in more than 30 countries, there's always something new to see on Snapchat Stories, and you can leverage this to grow your business through this engaging but fleeting content.

 

4. Spotlight

This feature picks out the most entertaining stuff made by regular users and gives them a spotlight, while still keeping everyone's privacy in mind.

 

Here are some perks of using Spotlight to promote your business on Snapchat:

  1. Reaching a younger audience: Snapchat is super popular among young folks, especially teens and young adults. If that's your target market, you're hitting the bullseye;
  2. Creative freedom: Snapchat is all about fun filters, stickers, and short videos. You get to be creative and make ads that are catchy and share-worthy;
  3. Higher engagement: people spend a lot of time on Snapchat, scrolling through stories and snaps. Your ads get right in front of them, which boosts engagement;
  4. More authenticity: Snapchat's disappearing content makes everything feel more real and urgent. It's like a behind-the-scenes peek, which can build trust and loyalty with your audience;
  5. GeoFilters and Lenses: these features let you customize your ads based on location or even let users play around with your brand in a fun way. It's interactive and memorable;
  6. Snapchat discover: if you're into publishing content, this can be a great way to showcase your brand's personality and expertise.

Snapchat says that people are spending way more time watching Spotlight videos compared to last year — over 125% more, which brings more potential opportunities for business promotion.

 

5. Snap Map

Snap Map is basically a digital map that's personalized just for the specific user. Snap Map lets you see where your friends are and what they're up to, as well as interesting things happening nearby. It's like having a virtual guide to your social circle and local area all in one place.

 

Plus, Snap Map is a way for Snapchat users to explore what's going on around the world. They can check out Place Listings to discover cool spots, events, or local businesses recommended by other users.

 

Here’s why you should consider using Snap Map in your Snapchat marketing strategy:

  1. More people can find you: Snap Map helps more people see your business, especially if they're nearby;
  2. Reach people where they are: you can target areas where your potential customers hang out, making it easier to reach them;
  3. Connect with your community: you use Snap Map to share updates and news about your business and interact with people nearby;
  4. Let people know about you: you can share events, deals, or fun things happening at your place so nearby Snapchatters know about it;
  5. Get people talking about your business: when people share their experiences at your business on Snap Map, it's like free advertising for you;
  6. Use it with other ads: you can use Snap Map along with other ads on Snapchat to make sure more people know about you.

Basically, Snap Map helps your business get noticed by more people nearby and lets you share how it can be useful for your potential customers. Also, Snapchat says that 350 million people use Snap Map every month, which is quite a lot and shows just how popular and useful it is for staying connected and discovering new things.

 

3. Innovative and creative ad formats

Advertising with Snapchat can also provide a lot of benefits for businesses who want to reach young demographics on the platform.

Snapchat ad formats

 

Snapchat provides several ad formats that can help with that:

  1. Single Image and Video Ads: these ads feature either a single image or a short video that appears seamlessly within users' Snapchat Stories or Discover feed. This ad format helps you grab users' attention with visual content, give them a quick and concise message about your product or service, and include a direct call-to-action (CTA) to make them swipe up for more information or to visit your website;
  2. Filter Ads: these are branded overlays or effects that users can apply to their Snaps. This ad format is meant to encourage user engagement by allowing them to interact with your brand in a fun and creative way, and it also increases brand awareness through memorable and shareable brand experiences;
  3. AR Lens: those are interactive 3D animations or effects that users can apply to their selfies or the world around them using the Snapchat camera. This ad format offers an immersive and entertaining experience that captures users' attention, allows users to interact with your brand in a unique and memorable way, and drives engagement rates through the ability to share content with others;
  4. Story Ads: these are full-screen vertical ads that appear between user-generated Stories or within Publisher Stories on Snapchat. They integrate seamlessly into the user experience and allow you to tell your brand’s story through a series of Snaps, helping you to engage users with compelling content;
  5. Collection Ads: they showcase multiple products within a single ad unit, allowing users to swipe through and tap to learn more or make a purchase. This ad format helps you get more exposure and drive sales by promoting your catalog in an effective way;
  6. Dynamic Ads: these are personalized ads created based on users' interests, behaviors, and preferences. They help you deliver relevant and timely content to various audience segments, increasing the likelihood of engagement and conversion;
  7. Commercials: these are non-skippable, full-screen video ads that appear within premium Snapchat Shows and curated Our Stories. They can provide high-impact visibility with premium placement in front of engaged audiences, maximizing your brand’s exposure and message retention.

Each ad format on Snapchat can give you plenty of unique opportunities to connect with your target audience, get more engagement and conversions. Whether it's through visually appealing imagery, interactive experiences, or personalized messaging, you can use Snapchat ads to grow your business and find more customers.

 

To learn how to create Snapchat ads in detail, check out our Snapchat ads guide.

 

4. Augmented reality (AR) tools for Snapchat marketing and advertising

Augmented reality (AR) is becoming more and more important in the advertising and marketing spheres because it provides an opportunity for customers to try things on at home and allows businesses to sell more. It’s a win-win situation for both parties, which is why more brands are starting to use AR in their campaigns.

 

Snapchat is one of the first apps to use AR for shopping, and since many Snapchat users use AR features every day, it's a great place for businesses to show their offers in the best way possible.

 

Here are the two key AR features on Snapchat that will be useful for businesses that advertise their products online:

  1. AR Shopping: Snapchat’s AR Shopping features like sizing and try-on make shopping more exciting by letting users check if shoes, glasses, bags, and other items will fit them or not;
  2. Camera Kit: this solution makes it possible for Snapchat’s AR technology to be used outside of the platform, e.g., on businesses’ websites and apps. Camera Kit makes shopping, sports, fashion, music, and education more fun and interactive, increasing engagement and conversion rates for different brands and organizations.

Let’s keep in mind that Snapchat is still actively investing in AR features, which means that there will be more useful tools in the future, so there are even more reasons to hop on the trend now and invest in Snapchat marketing.

 

 

5. Opportunities for local businesses

Using Snapchat for marketing and advertising is also a great way for local businesses to get noticed thanks to the platform’s focus on fostering communities in different locations.

 

There are several features for promoting local businesses with Snapchat advertising:

  1. Location-based targeting: you can attract potential local customers by using different ways of geotargeting;
  2. Radius targeting: you can even go more narrow and pick a precise spot on the map and targeting people from a specific distance around it;
  3. Location categories: you can target specific types of places like music venues or movie theaters;
  4. Promote local places: if you select this objective in the Ads Manager, you can show your Snapchat ads to users from a specific location radius.

Besides running Snapchat ads with geotargeting, you can also make it possible for your business to be discovered organically by using Snap Map. By adding your business to Snap Map through Place listing, you can make your business appear alongside the friends of Snapchat users, let them find your website or contact info, and even place orders or make reservations.

 

For example, if you’re running a local restaurant and add your business on Snap Map, you can let potential visitors discover you, check the opening hours, and reserve a table. In a case like this, Snapchat can be incredibly effective and provide exposure through both organic and paid means.

 

6. Creating communities and increasing brand recognition

Social media today aims for real and interactive connections because it's hard to connect these days, and Snapchat is a prime example of this. It focuses on one-on-one connections: users enjoy sharing genuine moments, making it a good place to build strong bonds with your customers.

 

Here's how Snapchat can help your business get noticed online:

  1. Making real connections: you can chat directly with users on Snapchat, showing that they care about them. By sharing genuine moments and relevant information, your business can become more relatable and better connect with your audience;
  2. Keeping people engaged and interested: you can post fun and interesting stories on your Snapchat to keep users interested and build a group of loyal followers;
  3. Getting feedback and talking to customers: you can ask users on Snapchat what they think about things through polls or messages. This not only helps you know your customers better but also makes them feel important;
  4. Using Snap Map, Stories, and Chatting: Snap Map helps you talk to people in specific places, while Stories let you share details about what your business does. Chatting directly with users helps you build closer relationships with them.

Remember: authenticity matters a lot on Snapchat, so you have to make sure that what your business shows fits in with what people like to see. You don't want them feeling like they're being bombarded with ads or promotional content, so learn what your target audience cares about and how it prefers to communicate and engage with brands to get your message across.

 

 

7. Leveraging user-generated content (UGC)

User-generated content (UGC) really influences how people decide to buy things. It's way more effective than content from influencers or regular ads because it sticks in people's minds longer and is far more likely to be watched all the way through.

 

Using UGC for your Snapchat marketing or advertising campaigns can really help your business come across as more authentic and reliable. Here’s how:

  1. Real people, real experiences: when users share content about your products or services, it shows that real people like and approve them. This makes potential customers more likely to trust your business and want to check out your offers for themselves;
  2. Free advertising: when users share their positive experiences with your business on Snapchat, it can function as free promotion. Their friends see it and might want to check out your business too;
  3. Engagement and interaction: encouraging users to create and share content related to your business can boost engagement. It's like a conversation starter, getting people talking about your business and building a community around it.

Also, Gen Z and Millennials are more receptive to UGC, which creates a great opportunity for businesses targeting younger demographics. Incorporating UGC into your ads can help your business come across as more authentic and relatable – this matters a lot on Snapchat.

 

Even if you’re not at the stage where people will readily create content related to your business, you can make your ads and content feel more organic by learning from the best user-generated content.

 

That being said, no platform is perfect, and Snapchat has its own drawbacks too. According to Digiday, there are some problems with the way Snapchat tries to fit into the traditional social media model that attracts advertisers, including slower rates of user base growth and less advanced performance measurement tools in comparison with platforms like Meta. Moreover, right now, the number of marketers ready to go full-in on Snapchat is less than those who view Snapchat just as one of the options and prefer to invest in bigger platforms.

 

However, many advertisers and marketers still choose Snapchat because of its unique and highly engaged user base that helps them generate good results from their campaigns. We’ve listed the main reasons for this, so now it’s up to you to decide if using Snapchat for marketing and advertising is the right thing to do.

 

Recap

In conclusion, Snapchat offers a plethora of opportunities for different types of businesses, but for some, the platform might be a better option than for others.

 

Snapchat marketing and advertising can be a perfect solution for you in these cases:

  1. You have a young target audience: if your customers are mainly Gen Z or Gen Alpha, Snapchat might be the best platform to reach them;
  2. You have a specific type of business: if you're trying to promote an online or a local business, Snapchat’s geotargeting and AR shopping features can help you get more customers. This is especially true for Snapchat ads for E-commerce businesses;
  3. You’re looking to explore new channels: Snapchat can also be a great choice if you want to try running advertising and marketing campaigns where your competitors aren't. Many businesses overlook Snapchat, preferring other platforms to it, and you can use this to reach the audiences that they can’t.

While Snapchat may have its drawbacks, such as slower user base growth and less advanced performance measurement tools compared to other platforms, it’s still worth a shot – you never know what result it may get you. Ultimately, whether or not to use Snapchat for marketing or advertising depends on your business goals, target audience, and budget. You can prepare by learning how much Snapchat ads cost and choosing the right advertising strategies and tactics to follow. 

 

And remember that it’s crucial to keep a balance between genuine connections and promoting your business on Snapchat: it’s all about authentic engagement on this platform. If done right, your Snapchat ads and marketing campaigns can boost your business’ visibility and drive conversions.

 

 

 

 

 

 

 

 

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