Snapchat has enjoyed a meteoric rise in popularity since it was first released five years ago. In fact, earlier this month Snap Inc’s initial public offering raised nearly $2.5 billion. Today more than 60 million people use Snapchat on a daily basis across Canada and the US, and globally over 150 million people use Snapchat to watch more than 10 billion videos every day – a figure which is up 350% from last year. On average, users spend 25 to 30 minutes on Snapchat per day, a remarkable amount of time for a mobile social networking app designed to showcase 10 second videos.
Today Snapchat represents a fantastic opportunity for businesses of all sizes.
What is Snapchat?
For the uninitiated, Snapchat is a mobile social networking platform that allows individuals or businesses to send ‘Snaps’ to their friends and followers. Each Snap is limited to 10 seconds in length, but an ever increasing number of filters and effects can be added to each video. Messaging has also become a major component of the app, but like the videos themselves each message automatically disappears after it has been viewed. You can also add Snaps to your ‘Story’ which can be replayed and viewed by any of your followers.
Snapchat by the numbers
In the United States, Snapchat reaches 41% of all 18 to 34 year olds every single day, and 60% of total users are younger than 25. Snapchat’s continuing appeal to young people is exemplified by the fact that almost 25% of total users have yet to graduate high school, and 18 to 24 year-olds represent 37% of users, while the 25 to 34-year old demographic composes 26% of users.
Meanwhile, currently only 12% of users are 35 to 54, and a paltry 2% are over 55, but these numbers could soon change. Just three years ago only 5% of smartphone users were aged 25 to 34 and just 2% of smartphone users over 35 had the app. Those stats rose quickly —today 38% of smartphone users aged 25 to 34 and 14% of smartphone users over 34 have the app, and approximately half of all new signups are from people over 25 years old.
Snapchat’s marketing strength
Snapchat’s current marketing strength comes from its remarkable penetration of the 18 to 34 year-old demographic. Over the next few years current users will graduate high school and university, and will soon enter the professional world. At the same time more and more people aged 35 to 54 are expected to adopt the app. These twin demographic changes will mean that Snapchat’s user base is poised to become slightly older and wealthier. However, the app’s appeal to younger generations shows no sign of slowing down.
It’s no wonder that Snapchat is expected to soon overtake Pinterest and Twitter in the number of daily active users. It is already used by 31.6% of American social network users, and is the third most popular social networking app among Millennials behind Instagram (43.1%), and Facebook (75.6%). Snapchat has already evolved from a novelty to a social media staple, but it will soon become dominant across all demographics.
Snapchat’s ad revenue is projected to reach $1 billion next year, up from $366.69 million in 2016 which was itself more than seven times larger than the $50 million earned in 2015. The jump in revenue is a testament to the app’s ability to penetrate the 18 to 34-year old demographic, but also to major updates designed to improve targeting and expand its ad portfolio.
Sponsored geofilters reach 40%-60% of all daily snapchat users. These filters are often branded and can be superimposed over images or videos before users share them organically. There’s a cost to branded filters however – up to hundreds of thousands of dollars are paid for branded filters.
Sponsored lenses are the most interactive Snapchat business opportunity. According to Snapchat’s website, “to activate lenses, Snapchatters simply press and hold on their faces. Some lenses include prompts like ‘raise your eyebrows’ to trigger an animation, adding a fun twist to the experience.” Animations can include everything from funny glasses, outlandish hair, makeup, dog ears, and even tacos (an example of a unique sponsored lens campaign from Taco Bell).
Snapchat now has sponsored ads which consist of a 10 second full screen video which appears between stories (videos which can be viewed by any friend or follower). According to research conducted by MediaScienceLabs.com these ads received 1.3 times more visual attention than YouTube, 1.5 times more than Instagram, and 2 times as much as Facebook. Spotify utilized such ads to promote their “Year in Music” campaign which garnered 26 million views.
Snapchat business opportunities
Snapchat already presents a number of fantastic business opportunities, and it is only growing more popular, more targeted, and more versatile. To make the most of the opportunity your business needs to invest in Snapchat sooner rather than later.Read more >