Social media can be overwhelming to keep up with for many people. With each new channel that arises, an opportunity is left for marketers to take advantage of. But will each of these social media options prove to be as lucrative as the last for marketers? Or are we chasing a fool’s gold?
Snapchat’s 25-year-old CEO Even Spiegel was mocked when he turned down $3 billion from Facebook for his Los Angeles start-up in 2013. Not even two years later, some estimate his app to be worth up to $19 billion. Snapchat allows its users to record pictures or videos and add text or drawing to send to individuals or to post to “My Story” for all their friends to view. These “snaps” can last from 1 to 10 seconds before they vanish. Snapchat has grown to have a base of over 100 million monthly users, 63% of which are between the ages 13 and 24. The coveted millennial demographic. Needless to say, Snapchat is on the frontline of social media use and has recently come out with new options for advertising, but some still remain skeptical about its potential. These are some important things to consider before marketing through Snapchat:
- Segmentation: Snapchat’s young user base makes it an appealing way to reach the millennial generation. However, since Snapchat acquires so little information from its users, it’s difficult for marketers to segment its users any further. If Snapchat grows to a larger demographic group, there would be virtually no segmentation with which to advertise.
- Format: Snapchat’s vertical layout makes it easy to open, use, and close the app without even having to rotate your phone. This means that app is friendly for users but not so much for marketers. Since videos are generally designed with a horizontal format companies will have to design new vertical advertising campaigns specifically for Snapchat, making it expensive to use. That could be worth it, though. Snapchat announced recently that it sees 9 times more engagement with vertical videos than horizontal videos.
- Time: Snaps are limited to lasting 10 seconds and, as of now, most ads are given the same limits. But 10 seconds may not be enough time for some companies to share a message that is worth the costs.
With all these unique restrictions for marketers, it is easy to understand why some may be hesitant to jump on to the Snapchat bandwagon. However, with such a large base of young users, Snapchat presents a rare opportunity for companies to reach the millennial generation. If your customers are a part of that generation, Snapchat should not be something you ignore. Let us know what you think about its future in marketing.