Snapchat recently overtook Instagram as the “most important” platform for U.S. teens, testifying to its surging popularity. The platform draws 10 billion views per day, more than Facebook, and is projected to earn $300 million in revenue this year – seven times higher than 2015 projections – thanks to an array of new advertising products. L2’s Snapchat Advertising report explains how brands can take advantage of those options:

The Classic Option: Discover

What is it? Brands can buy video commercials that are played between pieces of content from publishers including ESPN and VICE.
Pros: Brands that have mastered the traditional commercial will find it easy to adapt to this new format without heavy investments in content creation.
Cons: The Discover system disproportionately rewards deep-pocketed first-movers, while pricing out mid-sized brands. In each category, a single large player accounts for 57% of all ads – for example, Nike in Activewear, Little Debbie in CPG, and TRESemmé in Beauty.


The Organic Option: Live Stories

What is it? Brands tell a story through a combination of user- and brand-generated content, such as behind-the-scenes images and exclusive interviews. Alternatively, brands can include one snap in an unbranded Live Story feed.
Pros: Snapchat found that users preferred subtly branded content, suggesting that the organic vibe of Live Stories could have more impact than more blatant advertising.
Cons: For brands that buy a single ad in a Live Story, the snap is clearly marked as an ad and is not displayed again if the user rewatches that Live Story, limiting its reach.

The Artsy Option: Geofilters & Lenses

What is it? Brands create a filter or animation for consumers to layer over their snaps.
Pros: Geofilters are one of the few ways for brands to target consumers directly. CoverGirl found that sales of its Star Wars makeup line were higher in stores where customers had access to the branded geofilter.
Cons: None, except for the cost.


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