Dive Brief:
- L2 released its “Instagram vs. Snapchat” report on Snapchat advertising and found that it offers marketers the chance to get more reach than through traditional media with user-generated content and engagement.
- Snapchat was also found to be a more innovative advertising venue with new product features for marketers to experiment with, while Instagram hasn’t really expanded its ad offerings beyond updates such as longer video ads and video carousels.
- L2 research analyst Garett Levy told Marketing Dive that Snapchat’s ad technology platform allows brands to purchase media at scale, creates programmatic opportunities, and includes Chat 2.0 which creates opportunities for branded chatbots.
Dive Insight:
Even though Snapchat is seen as a more inventive venue than Instagram with its varied ad products, the drawbacks for advertising on Snapchat include high activation costs, limited targeting with minimal metrics, and Levy warned that results-oriented brands might find the platform too risky for ad campaigns.
“Facebook has had a noticeable impact on Instagram’s business model, having the platform mirror the parent’s proven combination of sponsored content, highly targeted ads, and an increasingly algorithmic feed,” Levy explained. “Snapchat, on the other hand, is still independent, allowing it to define its own roadmap. The platform appears to be leveraging proven best practices, such as an algorithmic feed and developing an API to scale its ad business, but is also continuously introducing new ways for users to engage (e.g., filters/lenses, Discover channels, Chat 2.0, etc.), which offers unique opportunities for brands to advertise.”
L2’s study also found that three product sectors – activewear, CPGs and consumer electronics – account for 57% of ads on Snapchat Discover.