Snapchat IPO: 3 things we learned about Snapchat advertising

Earlier this week, Snapchat’s parent company, Snap Inc., filed for an IPO under the ticker symbol “SNAP”. According to the filing, this will be the third largest technology market debut in history. What does that mean for business owners? Snapchat is here to stay and will become one of the primary platforms for businesses and brands to reach young and engaged consumers.

If they haven’t already, business owners should embrace the marketing power of Snapchat and custom filters. An IPO will only make the company more mainstream and embraced by the public.

Here are 3 things we learned about Snap from the SEC filing.


1. Snapchat’s advertising business is growing rapidly

When it was a nascent technology and emerging social media app, Snapchat’s advertising managed revenue of $58.7M in 2015! If that wasn’t impressive enough, Snapchat posted $404.5M in revenue the following year. Snapchat’s global average revenue per user (ARPU) went from $0.31 in 2015 up to $1.05 in 2016. This is just the beginning.

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2. Custom filters and other advertising products are highly effective

According to Snapchat, their advertising campaigns allow are highly targeted, reaching the right demographic and the right time. Marketing research firm Millward Brown noted that the 88% viewers of an advertising campaign for a men’s deodorant brand were the target demographic for the deodorant company: men between the ages of 13 and 34.

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3. Snapchat’s users are highly engaged

On average, users open the Snapchat app over 19 times a day and use it for roughly 35 minutes a day! Also, 25% of daily average users post to their Snapchat “story” on a daily basis, thus creating content. Because users are consuming content (generally video content) created by their friends, family or influencers, users are more receptive to the ads that are overlayed (such as a custom filter) or videos that run between content.


Conclusion

Unlike other social media platforms — such as Twitter and Facebook — Snapchat is making its #1 focus growth. This means businesses using custom filters for marketing purposes will see excellent results, at an affordable price. 

Evan Thomas