Friday, August 04, 2017

Snapchat’s New Data Deal Will Equip Marketers With More Third-Party Measurement

As Snapchat’s (SNAP) stock continues to tumble, and investors question its ability to compete with Instagram, the company has taken steps to improve its advertising metrics. In addition to  SNAP’s recent purchase of Placed, a location-based services company, it has started a metrics program “…that specifically addresses marketing mix modeling, or MMM, with four data companies: Neustar Marketshare, Nielsen, Analytic Partners and Marketing Management Analytics.” One of the major criticisms of SNAP has surrounded its inability to attract and monetize advertisements. In the digital marketing landscape, Google, Facebook and others have proven the importance of detailed, reliable customer data and how it corresponds to better ad placement and higher revenues.

With SNAP, this program, along with its other acquisitions and partnerships has two goals: “Increase the likelihood that big brands will buy ads on Snapchat and attach those campaigns to third-party measurement that confirms the results of a campaign.” This effort will ideally result in greater ad revenues, yet from a competition perspective these techniques and data programs have existed at Facebook, Google and Twitter for years. From an advertiser’s viewpoint, these metrics programs are about “…measuring sales lift and return on ad spend (or ROAS) on Snapchat—two key metrics that advertisers use to make big, broad decisions about their advertising spend.”

At this point in time, SNAP is simply trying to catch up with its biggest competitors and hopefully convince investors it has a long-term growth strategy around advertiser. The perception that SNAP has been difficult for advertisers to work with still exists, and until they can dispel that with these programs, it’s market share is in jeopardy.

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