Snap has acquired Placed, a startup that tracks whether digital advertising campaigns successfully bring users into stores. The acquisition could help convince brands to return to Snapchat by providing more information about ROI, a metric that the platform has been missing.
In the absence of reliable metrics, many brands have drifted from Snapchat to Instagram. In the Fashion category, for instance, 21% fewer brands posted on Snapchat during New York Fashion Week 2017 compared to the previous year’s event, according to L2’s Spring NYFW report.
Metrics on what type of content works best in ads could also help brands create non-promoted posts. Without reliable metrics, brands have been experimenting with various types of content. Products are the most popular, appearing in 23% of brand posts, according to L2’s Snapchat Strategy report. Brands also turn out a large amount of lifestyle content, from employee interviews to city guides. In contrast, celebrity and influencer posts are relatively untapped, accounting for just 7% of brand posts observed in the study.
Yet while Snapchat has been aggressively recruiting advertisers, its ads often fail to resonate with users. A fifth of teenagers and millennials “hate” Snapchat ads, a discouraging sign for brands eying the platform. Moreover, Snapchat is not alone in the tracking arena. Google recently launched a similar tool that links ad views to credit and debit purchases. Could Facebook be far behind?