Ross Arkley, Gillian Rae
This week, Ross Arkley gives us a rundown on Snapchat's self-serve ad tool, and Gillian Rae tells us about the rise in programmatic digital display spending.
Snapchat's Q3 revenue and their self-serve ad tool.
Snapchat’s self-serve advertising investment has toppled its revenue estimate for Q3. The self-serve ad tool makes it easier for companies of all sizes to reach their millennial target audience, putting to rest the countless hours spent dealing with a member of Snapchat’s ad team. Companies can now manage and schedule their posts themselves, cutting out the middle man. However, this could be the beginning of the end of for it’s Discover feature, with reports stating that Condé Nast US are set to close their multiple channels.
Snapchat’s third quarter of 2018 was mixed, with a growth of 43% to $298m and shrank losses from $325m to $118m. Snapchat is hoping for a record 2018 for ad revenue in the fourth quarter, projecting it they’ll reach close to $400 million.
Snapchat’s chief exec was quoted telling analysts that progress was driven by its global online sales business and greater adoption of its self-serve ad platform. In Q3, more than 85% of Snapchat’s advertising was transacted via the self-service tool; 35% up from last year.
Although the clients are getting larger and bringing in more money as a result, Snapchat's users fell for the second consecutive quarter, down 2 million from Q2. Which begs the question could the increase in advertisements have something to do with this?
Ross Arkley, Content Executive
Programmatic digital display ad spending continues to rise. From £3.39 billion in 2017 to an estimated £4.52 billion by 2019.
No matter how much the digital landscape has changed over the years, two key objectives have remained important to advertisers: maximising reach and ROI.
As an efficient and cost-effective way to serve ads at scale, programmatic is the perfect medium for reaching as many people as possible within a target audience whilst also being able to closely monitor costs in real time.
However, this isn’t all that programmatic can offer and by only focusing on these two objectives, advertisers are overlooking the full potential of programmatic.
From boosting creativity to increasing brand awareness and perception, this medium can do a lot for enhancing a brand as a whole.
Programmatic technologies provide the ability to collect consumer data from cookies: such as age and location, to interests, and previous purchases.
With this in mind, advertisers can therefore improve the accuracy of their ads and create a more pesonalised experience- something that is of great importance in today’s society. 39% of consumers in the UK feel frustrated by irrelevant ads, especially on a mobile device and 73% would consider engaging with a brand if it was relevant to them.
Programmatic also allows us the opportunity to monitor and measure an extensive range of KPIs and track viewing and search habits of the target audience by implementing a pixel on an advertiser’s website. This data provides an invaluable knowledge of the consumer, and can therefore be used to continually optimise campaigns, successfully retarget and learn for future activity. This ensures messaging continues to be engaging and relevant, and steadily increases its effectiveness – and boosts positive brand perception as a result.
In summary, programmatic should not only be looked at as a method of reaching as many people as possible. By looking at the bigger picture, programmatic can also enhance brands and serve relevant ads to an exact audience.
Gillian Rae, Media Planner/ Buyer