Have You Figured Out Snapchat Monetization?
How much time have you spent reading up on, researching or even testing the new kid on the social media block, otherwise known as Snapchat. The micro content spreading, short form video producing social network is HUGE and you may not even know why or how huge. For example, over 400 million snaps are sent out each day. Yet the social platform has not laid out a strategy for Snapchat monetization…yet.
We’ve uncovered some recent data on Snapchat daily usage and active users that will seriously blow you away. Depending on who you’re marketing too, this news could bring lucrative results to your social media marketing ROI and your businesses bottom line as a whole.
Sumpto, is a startup who’s expertise is in identifying top social-media influencers at colleges across the USA. They’ve done some research reported in TechCrunch that could show a possible Snapchat monetization model:
“Over 77% of college students are using Snapchat at least once every single day.”
These stats just get better, read on! This one for example will require you to be sitting down. Of all the college kids between the ages of 18-24 in the USA, at least 45% of them say they would open a snap from a brand they didn’t know. That’s an incredible statistic to know and understand.
Now how about this one: 73% of students would open a snap from a brand they already know! If you manage and operate a brand, is the cash register inside your brain ringing, loudly?
Clearly, the college kids today are moving further and further away from Facebook and embracing Snapchat. So much so that they are more then willing to engage on this platform with brands on they are already familiar with.
So if you’ve created a solid, faithful, and engaged following and fan base on Facebook, you may want to start cross promoting your Snapchat feed. Just don’t link to your snaps from Facebook to Snapchat. Sound crazy? Maybe so, but read this article telling why you should never link between social platforms.
Snapchat Monetization With Native Advertising
The key to Snapchat’s monetization and businesses advertising success is Native Advertising on Snapchat. Native advertising is an online advertising method in which the advertiser attempts to gain attention by providing content in the context of the user’s experience.
The native ad formats match both the form and the function of the user experience on each social network or website in which it is placed. The advertiser’s intent is to make the paid advertising feel less intrusive and thus increase the likelihood users will click on it.
If brands were allowed to send their own snaps to a well targeted and qualified group of college kids using Snapchat, this could break open social media advertising and show advertisers some major ROI – particularly when marketing on Snapchat to college kids!
The idea would be for brands and SMBs to target qualified Snapchat users by age, gender, location, likes/dislikes, and other info. TechCrunch reported that “Snapchat’s own Terms of Service explain that it has access to more than enough of personal data (like name, phone number, email, location, device info, and age) to start pin-pointing users for brands, and the ToS even provides for Snapchat to use this data for ‘advertisements.’”
College Students Love Snapchat
To understand how Snapchat’s money making plan should revolve around the 18-24 year old, college and university age demo, let’s take a closer look at the numbers from the Sumpto data.
- 69% of college students would willingly add a brand on Snapchat if they already follow that brand on other social networks like Instagram, Facebook, or Twitter.
- 67% would be interested in receiving brand promotions, coupons, discounts, and other offers via Snapchat.
- 58% said they’d be more likely to purchase a product with a coupon received from a brand advertising on Snapchat.
I haven’t heard any of these kind of stats when discussing Facebook advertising with anyone. Have you?
To get some context on the Sumpto study, they used their network of over 50,000 college students. The incentive for the students to complete the survey was based on a rewards program. This data, reported on TechCrunch, came from more than 1,650 students from over 200 colleges across the USA.
Many social networks are all about the monetization these days. It makes sense. We knew it was coming. The social media free ride has been over for some time now. It’s time to create quality content, share it, and engage with your fans and followers. Then rinse and repeat.
What method will Snapchat choose for its monetization model? You may recall that in June 2013, Snapchat co-founder and CEO Evan Spiegel said that in-app purchases would be Snapchat’s first monetization move.
They are surely testing that model as well as others. Time will tell how Snapchat starts to make money. They apparently turned down a $3 billion acquisition offer from Facebook so they must have a much bigger plan.
I look forward to seeing how it unfolds.
What are your thoughts on Snapchat’s monetization? Do you use Snapchat for yourself or your clients?
I’d love to hear your stories. Please share in the comments.