SlideShare a Scribd company logo
Snapchat and
Advertising
Katherine Angst, Carla Caban, Brianna
Hanson, & Andrea Mosk
What is Snapchat?
- Mobile app that allows users to
capture videos and pictures that
self destruct after a few
seconds
- *with the exception of screen
captures*
- 3 Areas of Snapchat
- Live Story
- Local Story
- Discover
Source: http://www.forbes.com/sites/larrymagid/2013/05/01/what-is-snapchat-and-why-do-kids-love-it-and-parents-fear-it/
Figure 1. iMore. Snapchat Mobile Image
Who is Using Snapchat?
- More than 60% of U.S. 13 - 34 smartphone
users are Snapchatters
- Over 100+ million daily active Snapchatters
and growing
- 5+ Billion video views every day
Source: https://www.snapchat.com/ads
Figure 2. Snapchat Monthly U.S. Users. (Snapchat Ads)
The 3 Vs
Source: https://www.snapchat.com/ads
Evan Spiegel, co-founder & CEO of Snapchat
Snapchat Timeline
- Snapchat was first launched in July 2011
- Personal MyStory feature was released in
October 2013
- In June 2014 direct chat, filters, and event
stories were introduced
- October 2014 saw the first Snapchat Ads
- The Discover page was released in January
2014
Source: http://slicecommunications.com/the-evolution-of-snapchat/
Figure 3. Timeline of Snapchat. (Timeline)
Snapchat Features
- Filters
- Face filters “Lenses”
- Geotags
- Sponsored Filters
- Live Story
- Local Story
- Company/Celebrity accounts
- Ads on Live Story
- Discover page for brands
Figure 4. Buzzfeed QR Tweet, Screen Capture, December 15, 2015
Costs for Advertisers
- 2 cents per per view for 10 second ad
- Approximately $400,000 worth of ad space for
20 million views
- 4 ad spots per story
- Price changes depending on placement, more
expensive at the beginning
- Either choose to advertise within an event
or sponsor a Snapchat story which
prompts Snapchat to make a story
Source: http://recode.net/2015/06/17/snapchats-making-some-pretty-serious-money-from-live-stories/
Figure 5. Idea Money. (Image)
Costs for Snapchat
- Unlimited space
- Employee salaries
- Software developers ($137,416 a year)
- Content analysis ($29.67 an hour)
- Privately owned company
- BuzzFeed and People and other publishers
featured on the Discover page get the channel
space for free in exchange for their content, and
they share ad profits with Snapchat.
Source: https://www.glassdoor.com/Salary/Snapchat-Salaries-E671946.htm
Figure 6. Snapchat Money Logo. (Logo)
Costs for Users
● Snapchat is a FREE app
● $.99 for replays
● 30 lenses for $.99 each, only 7 free
Figure 7. Screenshot by Katherine Angst
11.22.15
Source: http://money.cnn.com/2015/11/13/technology/snapchat-lenses-rage/
Why Brands Advertise on Snapchat
Paid - Brands pay for live stories, filters, ads on stories and
discover pages
Owned - Engaging content and stories from the company’s
account
Earned - Users sharing what they do, snapchats pulled from user
generated content for live/local stories
Figure 8. Screenshot by Katherine
Angst 12.16.15
Drawbacks
Snapchat has limited reporting capabilities
- Can't tell how many men vs. women saw an ad
- No age breakouts
- Currently limited targeting
High cost per ad
Source: http://www.adweek.com/news/technology/snapchat-asks-brands-750000-advertise-and-wont-budge-162359
Figure 9. Screenshot by Katherine
Angst 11.27.15
Future of Snapchat
- $16 billion valuation (Wagner)
- Assuming a $1 billion ad revenue source
- Facebook and Google offered Snapchat $3 billion and $4 billion respectively (“Inside
Snapchat”)
- Applying for an IPO
- 8 rounds of equity funding (“Inside Snapchat”)
Souce: http://www.adweek.com/news/technology/4-big-developments-show-why-snapchat-was-2015s-buzziest-platform-168570
Questions?
References
Ads • Snapchat. (n.d.). Retrieved December 15, 2015, from https://www.snapchat.com/ads
Johnson, L. (2015, December 15). 4 Big Developments That Show Why Snapchat Was 2015's Buzziest Platform. Retrieved December 16, 2015, from http://www.
adweek.com/news/technology/4-big-developments-show-why-snapchat-was-2015s-buzziest-platform-168570
King, H. (2015, November 13). Why people are freaking out at Snapchat today. Retrieved December 17, 2015, from http://money.cnn.
com/2015/11/13/technology/snapchat-lenses-rage/
Magid, L. (n.d.). What Is Snapchat and Why Do Kids Love It and Parents Fear It? Retrieved December 13, 2015, from http://www.forbes.
com/sites/larrymagid/2013/05/01/what-is-snapchat-and-why-do-kids-love-it-and-parents-fear-it/
Miranda, C. (2015, February 9). The Evolution of Snapchat | Slice Communications - Philadelphia. Retrieved December 16, 2015, from http://slicecommunications.
com/the-evolution-of-snapchat/
Sloane, G. (2015, January 14). Snapchat Is Asking Brands for $750,000 to Advertise and Won't Budge. Retrieved December 13, 2015, from http://www.adweek.
com/news/technology/snapchat-asks-brands-750000-advertise-and-wont-budge-162359
Snapchat Salaries. (n.d.). Retrieved December 16, 2015, from https://www.glassdoor.com/Salary/Snapchat-Salaries-E671946.htm
Wagner, K. (2015, June 17). Snapchat Is Making Some Pretty Serious Money From Live Stories. Retrieved December 15, 2015, from http://recode.
net/2015/06/17/snapchats-making-some-pretty-serious-money-from-live-stories/

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Snapchat Advertising

  • 1. Snapchat and Advertising Katherine Angst, Carla Caban, Brianna Hanson, & Andrea Mosk
  • 2. What is Snapchat? - Mobile app that allows users to capture videos and pictures that self destruct after a few seconds - *with the exception of screen captures* - 3 Areas of Snapchat - Live Story - Local Story - Discover Source: http://www.forbes.com/sites/larrymagid/2013/05/01/what-is-snapchat-and-why-do-kids-love-it-and-parents-fear-it/ Figure 1. iMore. Snapchat Mobile Image
  • 3. Who is Using Snapchat? - More than 60% of U.S. 13 - 34 smartphone users are Snapchatters - Over 100+ million daily active Snapchatters and growing - 5+ Billion video views every day Source: https://www.snapchat.com/ads Figure 2. Snapchat Monthly U.S. Users. (Snapchat Ads)
  • 4. The 3 Vs Source: https://www.snapchat.com/ads Evan Spiegel, co-founder & CEO of Snapchat
  • 5. Snapchat Timeline - Snapchat was first launched in July 2011 - Personal MyStory feature was released in October 2013 - In June 2014 direct chat, filters, and event stories were introduced - October 2014 saw the first Snapchat Ads - The Discover page was released in January 2014 Source: http://slicecommunications.com/the-evolution-of-snapchat/ Figure 3. Timeline of Snapchat. (Timeline)
  • 6. Snapchat Features - Filters - Face filters “Lenses” - Geotags - Sponsored Filters - Live Story - Local Story - Company/Celebrity accounts - Ads on Live Story - Discover page for brands Figure 4. Buzzfeed QR Tweet, Screen Capture, December 15, 2015
  • 7. Costs for Advertisers - 2 cents per per view for 10 second ad - Approximately $400,000 worth of ad space for 20 million views - 4 ad spots per story - Price changes depending on placement, more expensive at the beginning - Either choose to advertise within an event or sponsor a Snapchat story which prompts Snapchat to make a story Source: http://recode.net/2015/06/17/snapchats-making-some-pretty-serious-money-from-live-stories/ Figure 5. Idea Money. (Image)
  • 8. Costs for Snapchat - Unlimited space - Employee salaries - Software developers ($137,416 a year) - Content analysis ($29.67 an hour) - Privately owned company - BuzzFeed and People and other publishers featured on the Discover page get the channel space for free in exchange for their content, and they share ad profits with Snapchat. Source: https://www.glassdoor.com/Salary/Snapchat-Salaries-E671946.htm Figure 6. Snapchat Money Logo. (Logo)
  • 9. Costs for Users ● Snapchat is a FREE app ● $.99 for replays ● 30 lenses for $.99 each, only 7 free Figure 7. Screenshot by Katherine Angst 11.22.15 Source: http://money.cnn.com/2015/11/13/technology/snapchat-lenses-rage/
  • 10. Why Brands Advertise on Snapchat Paid - Brands pay for live stories, filters, ads on stories and discover pages Owned - Engaging content and stories from the company’s account Earned - Users sharing what they do, snapchats pulled from user generated content for live/local stories Figure 8. Screenshot by Katherine Angst 12.16.15
  • 11. Drawbacks Snapchat has limited reporting capabilities - Can't tell how many men vs. women saw an ad - No age breakouts - Currently limited targeting High cost per ad Source: http://www.adweek.com/news/technology/snapchat-asks-brands-750000-advertise-and-wont-budge-162359 Figure 9. Screenshot by Katherine Angst 11.27.15
  • 12. Future of Snapchat - $16 billion valuation (Wagner) - Assuming a $1 billion ad revenue source - Facebook and Google offered Snapchat $3 billion and $4 billion respectively (“Inside Snapchat”) - Applying for an IPO - 8 rounds of equity funding (“Inside Snapchat”) Souce: http://www.adweek.com/news/technology/4-big-developments-show-why-snapchat-was-2015s-buzziest-platform-168570
  • 14. References Ads • Snapchat. (n.d.). Retrieved December 15, 2015, from https://www.snapchat.com/ads Johnson, L. (2015, December 15). 4 Big Developments That Show Why Snapchat Was 2015's Buzziest Platform. Retrieved December 16, 2015, from http://www. adweek.com/news/technology/4-big-developments-show-why-snapchat-was-2015s-buzziest-platform-168570 King, H. (2015, November 13). Why people are freaking out at Snapchat today. Retrieved December 17, 2015, from http://money.cnn. com/2015/11/13/technology/snapchat-lenses-rage/ Magid, L. (n.d.). What Is Snapchat and Why Do Kids Love It and Parents Fear It? Retrieved December 13, 2015, from http://www.forbes. com/sites/larrymagid/2013/05/01/what-is-snapchat-and-why-do-kids-love-it-and-parents-fear-it/ Miranda, C. (2015, February 9). The Evolution of Snapchat | Slice Communications - Philadelphia. Retrieved December 16, 2015, from http://slicecommunications. com/the-evolution-of-snapchat/ Sloane, G. (2015, January 14). Snapchat Is Asking Brands for $750,000 to Advertise and Won't Budge. Retrieved December 13, 2015, from http://www.adweek. com/news/technology/snapchat-asks-brands-750000-advertise-and-wont-budge-162359 Snapchat Salaries. (n.d.). Retrieved December 16, 2015, from https://www.glassdoor.com/Salary/Snapchat-Salaries-E671946.htm Wagner, K. (2015, June 17). Snapchat Is Making Some Pretty Serious Money From Live Stories. Retrieved December 15, 2015, from http://recode. net/2015/06/17/snapchats-making-some-pretty-serious-money-from-live-stories/