An increasing number of direct-to-consumer marketers are moving a portion of their Facebook and Instagram ad spend to Snapchat. With Snapchat launching Pixel in June, direct-to-consumer marketers are reporting seeing up to a 50% lower cost-per-acquisition.
What makes Pixel more attractive to marketers is the ability to bid on conversions instead of swipes, which empowers marketers to target ads to people who are more likely to convert instead of simply swipe. This, in turn, is driving their cost-per-acquisition rate down. Another aspect of Pixel that is beneficial to brands is its ability to let companies retarget Snapchat users when they visit their websites.
Bidding on swipes isn’t without merit. This is a great tool for brands that are focused on boosting awareness of their brand on social platforms. The ability to bid on conversions that happen on your own website, however, is something that can make a significant impact on your bottom line.
This is only one of the ways that Snapchat continues to tailor its offering to marketers. In September, it launched a pilot of self-serve shoppable ads called Collection Ads. Guess, eBay and Wish were part of the Collection Ads pilot and eBay saw a five-time higher engagement rate with Collection Ads compared to standard Snap Ads for the same products. Wish reported a 17-times increase.
For many business owners and marketers, Snapchat is still seen as the new kid on the block, but the powerful advertising features they are launching, combined with the platforms’ popularity among the youth, make it something that marketers can no longer ignore.