Why is there so little data on Snapchat users?
Snapchat is one of the fastest growing social media platforms, and as a result of that, there is a strong pull to use your advertising dollars on that platform as well, but is it really worth the investment? After all, what you really want to achieve is a highly targeted ad that grabs the attention of the viewer in a way that makes them want to know more. Facebook does a great job of pulling information about their users to provide them with targeted advertising to draw more interest. Snapchat is also missing any tools to effectively measure the effectiveness of their ads that are presented to users.
Snapchat recently started to do more with this by teaming up with a data provider called Oracle Data Cloud and started to make use of the information that they have for their users to provide targeted ads for their users. Snap Audience Match was rolled out last September with the ability for the advertisers to connect better with Snapchat users, but this was hampered by allowing users to opt out of the Match program, thus cutting down on the available pool of users that would be targeted.
Snap, Inc. (SNAP) is now a company, and the pressure is on to make money. eMarketer reported that Snapchat is falling far behind Google and Facebook in advertising revenues. These two companies have been at this much longer, but you can see how much Snapchat has to recover on this. To do this, Snapchat will have to turn up the focus on analytics and make sure that they have a clear understanding of how their advertising impacts their users rather than just being willing to let things happen.
Snapchat is losing ground in the influencer market world
Influencer marketing is all about the social aspect of social media. If you think about it, you will understand that when it is time to think about spending your money, you will often turn to the opinions of those people that you know and trust. That is one of the beautiful things about social media because it allows the social media platform to help people make connections with the purchases and choices made by people that they know or even ask for recommendations for purchases they are looking to make. The problem that Snapchat faces is that it is so difficult to find someone that you haven't made a connection with. You need to know their user name or have their snap code.
This is an issue because, on other platforms, you are able to look up a celebrity and find them, whereas on Snapchat that isn't possible at this time. Keep in mind that people often think of celebrities that they know and love as if they were family and certainly respect their opinions on various matters at least as much. By being able to target advertising to influencers, companies are better able to get a solid return on their advertising investments.
A recent study from a website called Bloglovin' titled "We Asked, They Answered: How Marketers are Leveraging Influencer Marketing, agrees with this finding. 32% of the respondents said that they used the influencer marketing within the Shapchat social network while 91% used Instagram's influencer marketing and 80% made use of those influencers on Facebook. This is a loss of an important market.
Nearly 70% of Snapchat users skip the ads without looking at them at all
When you happen to spot an ad on Snapchat, there is seldom any reason to be interested in tapping it especially when you are planning to look at other people's Snaps. In fact, most users will skip the ad which is as easy as tapping on it. Studies show that 69% skip the ad and that jumps up to 80% in the Millennial market which is the bulk of the share of users on Snapchat. So why aren't users interested in watching the ads that appear within their Snaps? The biggest problem is that the three top types of ads that appear on Snapchat aren't interesting to the users. Most of the users are not interested in learning about news organizations, sports, or entertainment outlets. If you aren't matching the interests of the users, you won't make connections.
What can we take away from this?
Snapchat still has a long way to go if it wants to improve the marketing potential that it has. It will not be able to compete with other forms of social media if it cannot do a better job of targeting ads to its users by having a better sense of who they are with solid data. It will also need to tap into that influencer market to move ahead.