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 TripAdvisor, Foursquare, Michelin, Goop, Uber, Lyft, OpenTable, Resy 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.
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