To compete with behemoths (i.e. Facebook) and in an effort to drive sales in the second quarter, Snapchat announced that it will provide discounts and incentives to ad buyers.
It’s been a busy 2017 for social platforms, with Facebook announcing multiple flaws in its measurement of ad impressions and Instagram emulating Snapchat by trialing direct response ads. In search of growth, established brands have dialed up their digital investments by directing spend to emerging social platforms.
Apart from leveraging Snapchat to build brand awareness with a younger demographic, brands like Victoria’s Secret and Adidas NEO take advantage of the platform to drive engagement. Adidas NEO’s #MyNEOLabel campaign, for instance, invited consumers to create their own footwear and fashion designs with Snapchat’s doodle tool.
Brand adoption of Snapchat increased more than 50% in 2016, according to L2’s Social Platforms report, and continues to increase this year. Activewear brands are leading the charge in adoption by streamlining brand experiences across platforms and leveraging celebrity influencers. A blanket discount for advertisers might be the key for Snapchat to prove its self-serve model and drive revenue.