Back in February I wrote an article about Snapchat, I had been using it for 3 weeks and was pretty excited by the platform. The excitement surrounding Snapchat reminded me of the buzz Twitter was getting 8 years ago when I was living in New York. Facebook, Twitter and Tumblr were all getting started and Twitter was winning the battle. We all know what happened in the following years.
Three months later I’m still using Snapchat, and are excited by the new advertising features which really opens up the platform to advertisers.
A quick recap, Snapchat is a mobile App that allows images and videos to be sent. The messages last between 3 and 10 seconds, and then it disappears. Points are earned for every message sent and received, and there are trophies for rewards. To enhance snaps, you can add funny filters and text to images and videos. These filters are one of the reasons why the platform is so addictive. I got hooked using the filters and was actively sharing photos and videos with my wife’s friends, who in turn shared content with their friends. Before long the whole group was using it.
Snapchat figures are impressive for a platform that has been going for about 4 years. Snapchat has 200+ million users, 100 million are active daily users with Australia having 2 million active users. More than 60% of US 13 to 34 year olds Smartphone owners are Snapchatters. Users spend on average 30 minutes a day on it. Snapchat is dominating video with 10 billion videos watched daily. To put it in perspective, Facebook has the same number of video views, but are 10x times larger!
Why do people love the platform? Snapchat is giving users a platform to creatively express themselves to the world. We can share content (our own) with friends, celebrities and people located anywhere in the world (very similar to how Twitter was used to connect with people from anywhere, Facebook was more of a closed environment). And we control the frequency of interaction. Snapchat is the perfect platform to be continually sharing Snaps from our busy lives. The Snaps are a reflection of how we are feeling in the moment.
Interesting to note, all content on Snapchat is viewed vertically, which means it gets maximum eyeball attention on mobile. Studies have found that mobile users were not turning their phones when viewing content, resulting in landscape content been underutilised. This could be one of the reasons why Facebook has recently launched Canvas ads, to take advantage of the full vertical space.
So how do the brands get involved in the platform? Like with everything, there’s the organic way and the paid option. The organic way is to create stories on a brand’s profile. This does not mean replicating Facebook and Instagram content calendars onto Snapchat. The content should be quite separate and unique. Snapchat content is a lot rawer and does not require the same high creative production. However, it still requires some planning otherwise a brand’s profile will be full of random images and videos. The brands doing it well are telling a story, checkout NitroCircus for inspiration. But building an active community is quite labour intensive due to the content disappearing after 24 hours, so you have to be continually creating new stories.
Snapchat’s paid options allow brands to get involved without having to invest as much manpower, but there are still considerable costs to advertise on the platform. In Australia we’ve had limited access to advertising options, but this has changed recently.
One of the first paid options introduced by Snapchat was the ‘Discovery’ brand channel, which is a place where brands can publish curated content. This option has been only open to a small number of brands with very deep pockets (in the US prices started from $750k per day, apparently it’s now around $50k). In Australia some brands using Discovery channels have included Fox Sports, News.com.au, BuzzFeed and MTV.
Another option for brands to participate in is the ‘Live Story’ section, which occupies prime realestate just below the Discovery section. It’s a combination of user generated, branded and Snapchat curated content from live events from around the world, it’s a bit like a modern day documentary. A lot of the content is from behind the scenes at fashion shows, music and film awards and sport (the NBA finals has been featured a lot).
To get a sense of how big Snapchat is, America’s ABC recently broadcasted the American Music Awards, it got 3 million TV viewers aged 13-34, while a Snapchat Live Story about the event drew 11.5 million. Advertisers will be climbing over themselves to be featured next year.
Snapchat also features Live Stories from cities around the world, yesterday Reykjavik was featured. Not sure if there’s an option for cities to nominate themselves. Snapchat’s team based in LA and NYC sift through thousands of Snaps to curate the content and mix in their own content (with people on the ground at events), and add in ads (brand stories). To create ‘brand stories’, prices start from a very reasonable $20 for every 1,000 views. Yesterday I saw a 5 second Hungry Jacks ad video.
Quickly becoming a popular option for brands to participate on Snapchat is sponsored ‘on demand’ Geo-filters. Users can add branded graphics to selfie photos and videos based on Geo-locations. We’ve had community driven filters in Australia (e.g. Melbourne) but recently we got access to ‘on demand’ filters.
McDonalds was one of the first to use the filter on a national scale. Recently in the office we created a filter for an event, we geo-fenced it to our building for about an hour, and it costed about $5USD (very reasonable). Thoughts of hijacking events spring to mind, so it will be interesting to see how Snapchat manages this going forward.
The last 3 months have certainly been fun using and discovering more about Snapchat. If you want to learn more, I’ll be co-running a Snapchat workshop this Thursday afternoon. We’ll be Facebook Live streaming the workshop, so like our Facebook page to watch it.
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With the South East of Australia in the midst of winter, our attention turns to Europe where things are heating up for Google. The search engine was hit with a record Euro fine for anti-competitive behaviour totally 2.42-billion-euro ($3.57 billion AUD) for abusing its market dominance. Google has been accused of prioritising their Google Shopping ads at the top of Google search results over their competitors.
The other digital news to grab my attention this week was Facebook’s continued push into live TV streaming. Facebook has signed an agreement with Fox Sports in America to broadcast live Champions League Football (soccer) games next season.
Snap’s (Snapchat) continued push into the traditional media space has caught my eye. With more and more young people watching TV on their phones, Snap is well positioned to capture this audience due to many of its team having network and broadcast TV backgrounds.
Jimmy's Marketing News 