Snapchat Spotlight: Advertiser Q&A

Snapchat Spotlight: Advertiser Q&A

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When Snapchat launched in-app feature Spotlight in November 2020, the company opted to flex its muscles — and take on short-video-making app TikTok—by making daily disbursements of cash to participating Snapchatters. The rationale: to spark public creativity, incentivize public sharing amongst influencers, and build a following. Their efforts were successful: by January, the platform had grown to more than 100 million monthly active users. Curious to learn more about Spotlight and why it matters to your brand? Read on.

What Is Snapchat Spotlight?

Spotlight is a space within Snapchat where users can watch a vertically scrolled feed of short, engaging videos (up to 60 seconds long) backed by music. Rather than the day-in-the-life content traditionally associated with Snap, Spotlight offers content with a meme-like, jokey feel.

Why did Snapchat launch Spotlight?

Spotlight’s raison d’être may go beyond the obvious move to take on behemoth TikTok. It is also the place where Snapchat can branch off from the strategies that made the app a household name in the first place. Snap’s mandate since its inception in 2011, of course, has been privacy first, with photos and videos simply disappearing in 24 hours. It was a successful formula, and one that completely reimagined what online sharing could be. But the app seems to be acknowledging that some permanence can be a positive: with Spotlight, viewers can tap on favorite videos and save them.

Why Is Spotlight Popular?

Although comparisons to TikTok are inevitable, users claim the two are in fact different beasts. As Ad Age reports, CJ OperAmericano, who goes by her online name, explains that “Snapchat and TikTok have pretty different users and I am seeing higher rewards for originality and creativity on Snapchat Spotlight. You’re more likely to pop off on an original idea [on Spotlight] than just following along with a cookie cutter trend like you are on TikTok.”

Another difference: unlike TikTok, Spotlight does not have a function allowing public like counts or comments. But right now contributors are being rewarded another way. Based on a formula which includes number of views and length of views, among other factors, Snap is recognizing Spotlight contributors by awarding cash to the most popular creators. Users might make a minimum of $250 per Snap, but if someone has an extremely viral video, they could take home a big chunk of the pot. The approach has gotten attention because it’s not just existing influencers and TikTok stars who are benefitting. Average users are also making a profit after their videos go viral.

Consider Andrea Romo, who works at a Lowe’s in Albuquerque. Romo was shocked to find out that her Spotlight video—her sister deep-frying a turkey at Thanksgiving—was so popular it had earned her approximately half a million dollars. “You don’t have to ask to be paid, you don’t have to join any program, you just post a video and if it does well you get paid,” 19-year-old Dax Newman, a ceramist who has made about $30,000 on Snapchat, tells The New York Times.

What Should Brands Know?

Spotlight doesn’t show ads yet — with the operative term being “yet.” While Snapchat is, for the time being, simply giving Spotlight space to become a habit with users, the early surge of creators are exactly the people brands partner with and sponsor online. And it could be argued that Spotlight’s egalitarian approach — the fact that you don’t have to be a celebrity or have famous parents to get a leg up — is bringing attention to a new crop of budding influencers. Influencers that brands can look forward to partnering with down the line: according to Ad Age, “advertisers expect to be able to tie into the program and its creators in the future.”

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While Spotlight may not be open to advertising yet, digital opportunities for brands abound. Eager to learn more? Contact us. We can help.

Why Snapchat Keeps Growing

Why Snapchat Keeps Growing

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Snapchat has experienced its ups and downs in the past few years, but one undeniable truth prevails: the app continues to flourish. Snapchat is, in fact, exceeding growth expectations: eMarketer, for one, expects Snapchat to gain more than 63 millions users by the end of 2023, as contrasted to an original estimate of 52 million. In addition, according to The Street, Snapchat is on course to be profitable in the very near future, after years of losses: “Analysts expect Snapchat to soon reach its ‘break-even’ point in profits, most likely by 2022. A group of 34 technology analysts estimates the company will earn a profit of $48 million in 2022.”

Why the Growth?

Why is Snapchat continuing to grow despite increased competition from apps such as Instagram and TikTok? Some possible reasons include:

1 Continued Innovation

Snapchat’s owner, Snap, was just named Fast Company’s most innovative company in 2020, which speaks volumes about why Snapchat has rebounded from the brink. TechCrunch also reports that new products are bound to boost engagement with Snapchat and, crucially, ad views. Snapchat’s recent innovations include Cameos, which allow users to edit their own face onto an actor in an animated GIF. And Bitmoji TV features comical cartoons that star the consumer’s customizable Bitmoji avatar. For users who have always dreamed about being a secret agent, say, or a zombie president, Bitmoji TV brings those fantasies to life via episodes featuring a main story as well as shorter, single-gag clips. User avatars appear in the regularly scheduled adventures, which range from sit-coms to soap operas and infomercials. “It’s scripted but its personalized,” Bitmoji co-founder and CEO Ba Blackstock has said. “First and foremost, I hope that everyone who watches this has kind of a mind-blowing experience that they’ve never had before.”

2 Excellent Timing

Snapchat came along at the right time, as the Millennial and Gen Z population began to swell—and come of age. Launched in 2011, the app appeals to the Millennial and Gen Z populations with its promise of content that is both ephemeral and authentic. As co-founder Evan Spiegel noted in the company’s first blog post, “We’re building a photo app that doesn’t conform to unrealistic notions of beauty or perfection but rather creates a space to be funny, honest or whatever you might feel like at the moment you take and share a Snap.” And the platform has captured a sizable demographic. As Statista notes, Millennials and Gen Z, together, now comprise about half the U.S. population.

3 International Expansion

Snapchat continues to expand effectively into international markets, one profound example being the uptake of Snapchat in India. As TechCrunch observes, “Snapchat’s user growth has been on [a] tear thanks to international penetration, especially in India, after it re-engineered its Android app for developing markets.”

The Challenges

It’s not all smooth sailing, of course. As 24/7 Wall St. points out, Snapchat’s features can be—and in fact have been—easily copied by competitors like Facebook. When Snapchat introduced Stories, which allows users to share snaps in a narrative style, it was making a successful bid to keep users engaged and coming back for more. Facebook’s response? Its own version of Stories on both Facebook and Instagram; and the release of Instagram Threads, a camera and messaging app for “close friends.”  As Wired notes, Facebook chairman and CEO Mark Zuckerberg has made it clear to employees that doing what’s best for users might include replication: “Zuckerberg’s message became an informal slogan at Facebook: ‘Don’t be too proud to copy.’”

Furthermore, Snapchat lacks the reserves of cash that Facebook enjoys. 24/7 Wall St. opines, “While it’s still too soon to assess the impact of Instagram Threads on Snapchat, the salient point is that Instagram’s owner (Facebook) has a virtually unlimited war chest and a seemingly visceral need to stomp on Snapchat, if not to stamp it out entirely.”

Staying Viable

The key for Snapchat? Staying nimble and creative in the competitive and ever-evolving social landscape. In short, the app will continue to thrive if it keeps on generating features that both users and advertisers will love – especially advertisers, whose revenue Snapchat needs. One example of courting advertisers with more features: Snapchat’s Swipe Up to Call ads, which give users the opportunity to swipe up on their screen and immediately and directly call or text the advertiser.

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Snapchat: The End Might Be Near

Snapchat: The End Might Be Near

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Unless Snapchat figures out a new game plan to create proprietary features and experiences, 2019 will be the end of the popular photo-sharing app. The stock of its parent company, Snap, is scaring away investors. Its user base has plateaued. Each time Snapchat introduces a new feature, Facebook and Instagram copy it. For instance, Instagram users can share permanent photos on their profiles as well as more temporary content on stories that disappear within 24 hours, a feature that was once unique to Snapchat. Instagram is also becoming more engaging for users with the option to share public comments, likes, as well as create polls in stories, all features that Snapchat lacks. With the launch of its latest feature IGTV, Instagram is on the rise for 2019.

Where does the rise of Instagram leave Snapchat? In a very difficult place. That said, Snapchat still has cards to play, such as monetizing its location data for advertisers and building up its content platform as a broadcast media for businesses such as the National Football League, which told Advertising Age that it doubled viewership of its highlights video to 2 million during the most recent season. Another ray of hope for Snapchat: Facebook keeps hurting its own brand, to the point where it is vulnerable to losing advertisers.

What Snapchat needs is a proprietary feature that makes it so lovable to advertisers that they remain loyal no matter what Instagram or Facebook do. To that end, its R&D center is looking for a solution, perhaps involving augmented reality, where Snapchat has succeeded.

But Snapchat needs to work fast before investors’ lack of faith in Snap and pressure from other platforms brings the fabled platform to an end.

Advertiser Q&A: Snapchat Context Cards

Advertiser Q&A: Snapchat Context Cards

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Snap Inc. is finding allies in its ongoing war with Facebook. The latest battlefield is location-based marketing.

Last week, Snap announced the launch of Snapchat Context Cards, a new feature that injects more information into the content that Snapchatters share on the app. The launch has raised questions from businesses, ranging from “What do Context Cards mean to advertisers?” to “What the heck are Context Cards?” Here are some answers to popular questions:

What are Context Cards?

Context Cards consist of optional “more” buttons that Snapchat has embedded into the Snaps that Snapchat users post on their accounts. When you click on the “more” button, the Snap reveals location-based information about a user’s Snap.

For example, let’s say Snapchatter Marcia posts a photo of herself enjoying a breakfast burrito at her favorite café. Her photo, of course, is the Snap, or content that she posts on Snapchat. A Context Card, or “more” button, which appears on Marcia’s Snap, reveals a treasure trove of information about the café, such as its address, map location, and user reviews. In addition, Marcia’s Snapchat friends who receive the Snap can click on ride-sharing services embedded in the Context Card if they want to visit her at the café.

This video gives you more insight into how Context Cards work:

Context Cards have generated a lot of curiosity because Snaps are the language of Snapchat. Context Cards enrich that language with information about the places where Snapchatters share information with each other – sort of like turning Snaps into Swarm check-ins loaded with information about where Snapchatters are and what they’re doing.

The term “context card” is not unique to Snapchat. Facebook uses them, too. As Facebook explained in 2016: “A context card is an added (and optional) tile that pops up after someone clicks on a lead ad but before they get to the form, giving businesses a place to offer more details on the information people are signing up for. So, if a business is using lead ads to find new email subscribers, they may use a context card to explain what type of content they offer in their emails. Context cards help businesses ensure that the leads they receive are high-quality.”

But Snapchat has branded the term within a specific context of location-based information.

Does every Snap now contain a Context Card?

No. According to TechCrunch, “[Context Cards won’t appear in every Snap, however, lest you were worried that Snapchat was turning every single post on its platform into a marketing tool. Instead, it’ll include those that have been tagged with the company’s venue-specific Geofilters, or with any Snap that’s been submitted to the public ‘Our Story’ feed and that appears in Snap Map or Search.”

Where does Snapchat get all location information needed to create Context Cards?

Snapchat is not mining all the data on its own. To retrieve and publish location-based information, Snapchat is partnering with companies that collect this kind of information already. As reported in Adweek: “The messaging application teamed up with launch partners TripAdvisorFoursquareMichelinGoopUberLyftOpenTableResy and BookTable to supply information including reviews (from critics and customers), tips, reservations, booking rides, directions, hours of operation, phone numbers, websites and other Snaps from around the area.”

Foursquare provided more insight into how Foursquare partners with Snapchat on Context Cards here.

What does Snapchat get out of Context Cards?

Context Cards could make Snapchat more attractive to businesses, which it must do in order to compete as a revenue-generating advertising platform. Just how Snapchat will benefit remains to be seen, but here are a few ways the company may become more valuable to advertisers:

  • User engagement: If Context Cards cause Snapchat users to spend more time on the app by digging deeper into each other’s Snaps and interacting with the location-based data, Snapchat will be able to report stronger user engagement numbers to advertisers. For instance, conceivably a user could tap into a Context Card, check out customer reviews of a restaurant pictured in a Snap, and use Uber to visit the restaurant all within Snapchat. More time spent on Snapchat means more opportunities for advertisers to interact with users.
  • Data: Snapchat can collect more data about user activity, such as what they are searching for and where they are spending their time, which would make Snapchat a source of more targeted advertising. And targeted ads mean more relevant interactions with users, which is Facebook’s stated competitive advantage.
  • Revenue generation: the Context Cards could create ways for Snapchat to collect more revenue from transactions and advertising. As discussed in Forbes, “The feature could also open up a new revenue stream for Snap, as it could charge its partners a commission for each booking or transaction carried out via its platform. If Snap is able to scale up this opportunity, it could be quite lucrative given the company’s relatively young and affluent user base, which is located primarily in developed markets.”

But Snapchat will have to tread carefully. People won’t use Context Cards that create unwanted advertising popping up on their screens.

What do Context Cards mean to advertisers?

  • If you operate brick-and-mortar storefronts, make sure your location-based data and content are accurately reported to Snapchat’s partners such as Foursquare. A Context Card isn’t going to be very valuable if it sends users to the wrong address of that café where Snapchatter Marcia is enjoying her breakfast burrito. Now, more than ever, you need to manage your data and content closely.
  • Keep your eyes on Snapchat especially if you advertise to a millennial audience. Watch how Context Cards evolve and be ready to capitalize on advertising opportunities as they arise.
  • If you advertise on Facebook, keep an eye on how Facebook responds. Facebook has not capitalized on location-based marketing beyond giving brands real estate to create their own pages. Look for Facebook to answer Snapchat with more effective ways for businesses to embed location-based information into the world’s largest social media platform.

Bottom line: Context Cards give Snapchat a way to combat Facebook in location-based marketing. Facebook offers something akin to Context Cards when users check into places on Facebook and reveal information about the location of the check-in. But they are not very and interesting and useful. Context Cards embed a lot more information. Snapchat has an advantage – for now.

To make your marketing more effective across the digital world, contact True Interactive. We’re here to help.