Snapchat is shifting its focus from growth to monetization through advertising. It has hired an executive to help with an IPO and wants to be valued at $1 billion by 2017. There are two types of Snap ads: ads between stories and expandable ads that take users off the platform. Research found Snapchat ads have high engagement levels, though it's still early to determine their long-term success given they are new and targeting existing Snapchat users. The ads are seen as unobtrusive since they are limited to 10 seconds and users can quickly swipe past them. An example Taco Bell lens was viewed 224 million times, showing how ads can be engaging for users on the platform.

1. Snapchat Introduces Ads:
A How To Guide
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2. Snapchat Goals Change
● Formerly growth, but now
claims over 100 million
daily users
● Swich to monetisation
● Hired Imran Khan - IPO
King
● Turning its attention to
profit
● Wants to IPO as a billion
dollar company by 2017

3. Why Snap Ads Are News
● Snapchat reaches 41%
of 18-34 year olds in
the US
● Users spend 25-30
mins on the app per
day
● Spreading quickly - not
just randy teens

5. Two Types Of Snap Ads
● Snap Ads Between
Stories: Video or image
ads will sometimes run
when you auto advance
through your friends
stories
● Expandable Ads: Swipe up
and move to an external
site! Takes you off the
platform.

6. How Do The Users Feel?
● Mixed reactions
● Took to sites like Twitter
and Reddit to complain

7. ● API - allows you to buy ads
directly from Snapchat
● Snapchat Partners - connects
advertisers with ad agencies to
help with targeting and ad
spend
● Ads Measurement Partners -
external agencies will compile
stats and metrics for you
Snapchat will inspect every ad
before releasing it to ensure
high quality ads
Benefits For Businesses

8. Off The Charts Engagement?

9. ● Testing carried out by
MediaScience exposed 320
consumers (16-56) to online
ads during 552 sessions
● Included Snapchat, Facebook,
Instagram, Youtube and TV
● Results put Snapchat second
to TV
YES (initially..)

10. ● Snap Ads are NEW
● Research was with
existing group of
snapchatters
● Too early to tell whether
it will be a success
But… (yes there’s a but)

11. ● Ads are unobtrusive - 10
second limit
● Less noisy than Facebook
or Instagram - all posts in
a day appear as one story
● Users can swipe off ad
immediately
Final Thoughts

12. ● Taco Bell Sponsored Lens
● Set up for Cinco de Mayo
● Viewed 224 millions times
- new record
● Prime example of how ads
are unobtrusive and
actually fun for users
Examples To Date