SlideShare a Scribd company logo
1 of 21
Capabilities & Select Product Showcase
Snapchat– The10-second self-destructing
pieces of content within a 5-inch screen
Snap What?
• Snapchat has risen to prominence very quickly as an alternative social network for
teens and young adults.
• Snapchat launched Stories in October 2013. The app's users can use Stories to
weave together collections of photos and video. These do not disappear after being
viewed and can be seen by a user's contacts again and again in a 24-hour period.
• In May 2014, Snapchat introduced instant messages and video calls.
• In mid-June 2014, Snapchat introduced "Our Story," which allows Snapchat users at
events, identified by location data, to contribute video and images to a single, crowd-
sourced collection of images and video.
• As it's introduced these new features, Snapchat has also improved its integration with
a user's device. Users can now save parts of their Stories to the native photo app on
their. This is important since it allows people to use their Snapchat app as a kind of
canvas. If they're inclined to use Snapchat's drawing features.
The following keynote was delivered by Evan Spiegel, CEO of
Snapchat, at the AXS Partner Summit
Three characteristics of the More-Personal Computer that are
particularly relevant to our work at Snapchat:
1) Internet Everywhere
2) Fast + Easy Media Creation
3) Ephemerality
Snapchat discards content to focus on the feeling that content brings to
you, not the way that content looks. This is a conservative idea, the
natural response to radical transparency that restores integrity and
context to conversation. Snapchat sets expectations around
conversation that mirror the expectations we have when we’re talking
in-person.
Snapchat focuses on the experience of conversation – not
the transfer of information. We’re thrilled to be a part of this
community.
0
200
400
600
800
1000
1200
Snapchat Snaps Sent (Photos or Videos that
disappear after 10 seconds or less)
Snapchat Stories Viewed (Longer collections of
video and pictures that last 24 hours)
Snapchat Visual Sharing Is ExplodingMillion
The Snapchat Audience: International
• Snapchat has passed the 80-
million mark in active users
globally.
• Snapchat is strongest in the U.S.,
where it had an adult audience of
16.5 million in December 2013,
according to comScore data. Of
course, Snapchat has continued to
grow since then. It continues to place
routinely as one of the top 10
Apple iPhone app downloads in the
U.S.
The Snapchat Audience: International
• With an increasing global footpint, Snapchat has
reached the No. 1 spot for most-downloaded
free iPhone app in 30 countries, the No. 2 app in
16 countries, and the third-ranked app in 12
countries.
• It's especially strong in Western Europe,
Australia, and Canada. In November,
Snapchat CEO Evan Spiegel said that 25% of
iPhone users in the U.K. used Snapchat, and
50% of Norwegian iPhone users actively used
the app. Snapchat has also been a regular top
10 app in other Western European and English-
speaking markets: Australia, Canada, the
Netherlands, Sweden, France, etc. It has yet to
catch on in Spain, Germany, and Italy. It's in
popular in these countries, as well as in the U.S.,
on Android as well as iOS.
The Snapchat Audience: Young And
Female
• The majority of Snapchat's user base
is female, and most are youthful,
aged between 13 and 25, according
to company statements, news reports,
surveys, and our own estimates based
on social network market data.
• 39% of graduating high school
seniors in the U.S. use Snapchat to
communicate with friends and family
"multiple times daily” (for voice calls
the percentage was only 23%)
• In keeping with most users' age range,
they also have an average annual
income less than $50,000
annually.
Snapchat Demographics In 2014: Users Are
Mostly Girls/Women, And People Younger Than
25
% Of Snapchat Users Who Are…
35%
65%
29%
71%
19%
81%
Male Female Older Than
25
Younger
Than 25
Earning More
Than
$50,000 in
Annual
Income
Earning Less
Than
$50,000 in
Annual
Income
Gender
Age
Income
How Often Do You Use Each To Communicate
With Family And Friends?
% Of High School Seniors Answering, “Multiple Times Daily”
82%
39%
23%
18%
15%
5%
5%
2%
Text Messaging/SMS
Snapchat
Audio Call
Facebook Messenger
Another Messaging Service (Like Kik Or
Whatsapp)
Skype
Apple FaceTime
Google Chat (Gchat)
Nearly Half Of Americans Aged 12 To 24 Have
Used Snapchat
Percentage Who Use Each Social Network In U.S. – Early 2014
80%
53%
46%
36%
30%
22%
16%
9%
58%
19%
13%
16%
9%
6%
13%
19%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Have A
Profile On
Facebook
Have An
Account
On
Instagram
Ever Use
Snapchat
Ever Use
Twitter
Ever Use
Vine
Have An
Acount On
Tumblr
Have
Pinboard
On
Pinterest
Have A
Profile On
Linkedin
12 - 24 All Ages
How U.S. College Students Would Like To
Connect With Brands On Snapchat
69%
67%
58%
Inclined To Open A Picture
From A Brand
Want To Receive
Discounts Or Promotions
From A Brand
Likely To Purchase A
Brand's Product Or Service
If Sent A Coupon
Brands On Snapchat
Mashable: The digital news website regularly sends Stories that
showcase their reporters' take on a story or event, or just fun
updates, making light of people's hatred of Mondays.
Taco Bell: Taco Bell has arguably been the brand pioneer on
Snapchat. In the first half of 2013, it was the first major brand to
send a Snap — of the reintroduced Beefy Crunch Burrito — and
more recently it has been a prolific user of the Stories feature,
recruiting social media personalities such as model Chrissy
Teigen to participate in its campaigns, like the November 2013
Snapchat Story, "Friendsgiving.”
Karmaloop: The streetwear-focused e-commerce site sends
Snapchat friends first looks at new clothing lines, and exclusive
discounts.
McDonald's: The chain used Snapchat photos and a 36-second
story to launch the Bacon Clubhouse sandwich.
Brands On Snapchat
Grub Hub: The food ordering website sent followers a discount
coupon code, "Chopstix," for ordering sushi.
16 Handles: The yogurt chain used its Snapchat account
Love16Handles to send users disappearing coupons.
Acura: The car brand used Snapchat to showcase exclusive
footage of the Acura NSX before it was revealed anywhere else.
Audi: The car brand has sent a Snapchat Story showing a
video of Audi cars recently unloaded from a container ship, with
views of the New York skyline in the background.
Brands On Snapchat
Case Study – Wet Seal
Wet Seal's Snapchat campaign, put together by ICED Media, also shows that it is possible to
build a large audience and accumulate a significant number of views for a Snapchat
campaign, although there was a great deal of cross-promotion on other networks.
• Wet Seal: The teen retailer won a digital marketing award, one of the 2014 Shorty Awards,
for Best Brand On Snapchat. Campaigns included disappearing discount codes, and a
"takeover" of the account by teen blogger MsMeghanMakeup, who created a Snapchat
Story that earned 6,000 views in 24 hours.
• Wet Seal earned 6,000 connections (equivalent to Facebook friends) on Snapchat in
two weeks, according to the submission for the Shorty Awards.
• Wet Seal's Stories drew 250,000 views in two months.
Selected Brands’ Snapchat Score, June 2014
(Snaps sent And Received)
0
10
20
30
40
50
60
70
80Thousands
How Snapchat Could Revolutionize
The Future Of Advertising
Snapchat’s entire existence started off with a feature that never
existed before, and the startup wants to continue this trend by building
on more functionality and innovations.
• In terms of monetizing the app, in-app purchases will come first, as
Snapchat looks to innovate and create services users will want to
pay for – a model often disregarded in today’s market.
• It will then potentially be able to collect data on users, allowing for
ad targeting, which has proven to be more effective and provide a
higher ROI for brands.
• Major players within the messaging space start to develop a range
of services that move beyond just communications, including social
gaming integration, payment tools and utilities that integrate into a
user’s lifestyle.
How Snapchat Could Revolutionize
The Future Of Advertising
• Snapchat could potentially incorporate GPS
functionality allowing users to send Snaps that
reveal their current location. This could
completely transform how brands are able to
communicate with Snapchat users.
• Snapchat’s out-of-box format encourages
brands to think like they have never done before
– building messages for 10-second self-
destructing pieces of content within a 5-inch
screen – and it has the potential to revolutionize
the future of advertising.
Disadvantages To Snapchat
• The demographics are advantageous to the right brand and message but also make it
a fairly narrow platform.
• Snapchat's structure makes it difficult for a brand to build a large audience.
• Unlike Facebook or Twitter, where user interaction is organized around user profiles
and user feeds, Snapchat is organized around direct communication between
users.
• Also, Snapchat users typically can’t easily reshare brand content, so there’s no viral
effect achievable within Snapchat.
• It's time-consuming for brands to open and view
responses to their content in Snapchat, much less
respond to any of them.
• There are no metrics-yet. Brands have to manually
count their followers and other basic metrics, such as
how many people have opened their snaps. Snapchat
only offers user "Scores," which counts the number of
Snaps sent and opened by each user.
• Snapchat is still smaller than the largest social networks but we estimate
it reached 82 million monthly active users globally as of May 2014.
• The majority of Snapchat's user base is female and between the ages of
13 and 25, a difficult-to-reach demographic.
• Several marketer-friendly features have been introduced in the last eight
months, including videos known as "Snapchat Stories," which don't
disappear.
• Snapchat is responsible for developing a format that enables brands to
pioneer new ways of communicating with audiences.
• Snapchat does pose disadvantages: There's a lack of metrics, and it
favors private one-on-one communication, which tamps down on virality.
Key Takeaways
111 John St. 4th fl
New York, NY 10038
FreshDigitalGroup.com

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Snapchat's Growing Audience and Advertising Potential

  • 1. Capabilities & Select Product Showcase Snapchat– The10-second self-destructing pieces of content within a 5-inch screen
  • 2.
  • 3. Snap What? • Snapchat has risen to prominence very quickly as an alternative social network for teens and young adults. • Snapchat launched Stories in October 2013. The app's users can use Stories to weave together collections of photos and video. These do not disappear after being viewed and can be seen by a user's contacts again and again in a 24-hour period. • In May 2014, Snapchat introduced instant messages and video calls. • In mid-June 2014, Snapchat introduced "Our Story," which allows Snapchat users at events, identified by location data, to contribute video and images to a single, crowd- sourced collection of images and video. • As it's introduced these new features, Snapchat has also improved its integration with a user's device. Users can now save parts of their Stories to the native photo app on their. This is important since it allows people to use their Snapchat app as a kind of canvas. If they're inclined to use Snapchat's drawing features.
  • 4. The following keynote was delivered by Evan Spiegel, CEO of Snapchat, at the AXS Partner Summit Three characteristics of the More-Personal Computer that are particularly relevant to our work at Snapchat: 1) Internet Everywhere 2) Fast + Easy Media Creation 3) Ephemerality Snapchat discards content to focus on the feeling that content brings to you, not the way that content looks. This is a conservative idea, the natural response to radical transparency that restores integrity and context to conversation. Snapchat sets expectations around conversation that mirror the expectations we have when we’re talking in-person. Snapchat focuses on the experience of conversation – not the transfer of information. We’re thrilled to be a part of this community.
  • 5. 0 200 400 600 800 1000 1200 Snapchat Snaps Sent (Photos or Videos that disappear after 10 seconds or less) Snapchat Stories Viewed (Longer collections of video and pictures that last 24 hours) Snapchat Visual Sharing Is ExplodingMillion
  • 6. The Snapchat Audience: International • Snapchat has passed the 80- million mark in active users globally. • Snapchat is strongest in the U.S., where it had an adult audience of 16.5 million in December 2013, according to comScore data. Of course, Snapchat has continued to grow since then. It continues to place routinely as one of the top 10 Apple iPhone app downloads in the U.S.
  • 7. The Snapchat Audience: International • With an increasing global footpint, Snapchat has reached the No. 1 spot for most-downloaded free iPhone app in 30 countries, the No. 2 app in 16 countries, and the third-ranked app in 12 countries. • It's especially strong in Western Europe, Australia, and Canada. In November, Snapchat CEO Evan Spiegel said that 25% of iPhone users in the U.K. used Snapchat, and 50% of Norwegian iPhone users actively used the app. Snapchat has also been a regular top 10 app in other Western European and English- speaking markets: Australia, Canada, the Netherlands, Sweden, France, etc. It has yet to catch on in Spain, Germany, and Italy. It's in popular in these countries, as well as in the U.S., on Android as well as iOS.
  • 8. The Snapchat Audience: Young And Female • The majority of Snapchat's user base is female, and most are youthful, aged between 13 and 25, according to company statements, news reports, surveys, and our own estimates based on social network market data. • 39% of graduating high school seniors in the U.S. use Snapchat to communicate with friends and family "multiple times daily” (for voice calls the percentage was only 23%) • In keeping with most users' age range, they also have an average annual income less than $50,000 annually.
  • 9. Snapchat Demographics In 2014: Users Are Mostly Girls/Women, And People Younger Than 25 % Of Snapchat Users Who Are… 35% 65% 29% 71% 19% 81% Male Female Older Than 25 Younger Than 25 Earning More Than $50,000 in Annual Income Earning Less Than $50,000 in Annual Income Gender Age Income
  • 10. How Often Do You Use Each To Communicate With Family And Friends? % Of High School Seniors Answering, “Multiple Times Daily” 82% 39% 23% 18% 15% 5% 5% 2% Text Messaging/SMS Snapchat Audio Call Facebook Messenger Another Messaging Service (Like Kik Or Whatsapp) Skype Apple FaceTime Google Chat (Gchat)
  • 11. Nearly Half Of Americans Aged 12 To 24 Have Used Snapchat Percentage Who Use Each Social Network In U.S. – Early 2014 80% 53% 46% 36% 30% 22% 16% 9% 58% 19% 13% 16% 9% 6% 13% 19% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Have A Profile On Facebook Have An Account On Instagram Ever Use Snapchat Ever Use Twitter Ever Use Vine Have An Acount On Tumblr Have Pinboard On Pinterest Have A Profile On Linkedin 12 - 24 All Ages
  • 12. How U.S. College Students Would Like To Connect With Brands On Snapchat 69% 67% 58% Inclined To Open A Picture From A Brand Want To Receive Discounts Or Promotions From A Brand Likely To Purchase A Brand's Product Or Service If Sent A Coupon
  • 13. Brands On Snapchat Mashable: The digital news website regularly sends Stories that showcase their reporters' take on a story or event, or just fun updates, making light of people's hatred of Mondays. Taco Bell: Taco Bell has arguably been the brand pioneer on Snapchat. In the first half of 2013, it was the first major brand to send a Snap — of the reintroduced Beefy Crunch Burrito — and more recently it has been a prolific user of the Stories feature, recruiting social media personalities such as model Chrissy Teigen to participate in its campaigns, like the November 2013 Snapchat Story, "Friendsgiving.” Karmaloop: The streetwear-focused e-commerce site sends Snapchat friends first looks at new clothing lines, and exclusive discounts. McDonald's: The chain used Snapchat photos and a 36-second story to launch the Bacon Clubhouse sandwich.
  • 14. Brands On Snapchat Grub Hub: The food ordering website sent followers a discount coupon code, "Chopstix," for ordering sushi. 16 Handles: The yogurt chain used its Snapchat account Love16Handles to send users disappearing coupons. Acura: The car brand used Snapchat to showcase exclusive footage of the Acura NSX before it was revealed anywhere else. Audi: The car brand has sent a Snapchat Story showing a video of Audi cars recently unloaded from a container ship, with views of the New York skyline in the background.
  • 15. Brands On Snapchat Case Study – Wet Seal Wet Seal's Snapchat campaign, put together by ICED Media, also shows that it is possible to build a large audience and accumulate a significant number of views for a Snapchat campaign, although there was a great deal of cross-promotion on other networks. • Wet Seal: The teen retailer won a digital marketing award, one of the 2014 Shorty Awards, for Best Brand On Snapchat. Campaigns included disappearing discount codes, and a "takeover" of the account by teen blogger MsMeghanMakeup, who created a Snapchat Story that earned 6,000 views in 24 hours. • Wet Seal earned 6,000 connections (equivalent to Facebook friends) on Snapchat in two weeks, according to the submission for the Shorty Awards. • Wet Seal's Stories drew 250,000 views in two months.
  • 16. Selected Brands’ Snapchat Score, June 2014 (Snaps sent And Received) 0 10 20 30 40 50 60 70 80Thousands
  • 17. How Snapchat Could Revolutionize The Future Of Advertising Snapchat’s entire existence started off with a feature that never existed before, and the startup wants to continue this trend by building on more functionality and innovations. • In terms of monetizing the app, in-app purchases will come first, as Snapchat looks to innovate and create services users will want to pay for – a model often disregarded in today’s market. • It will then potentially be able to collect data on users, allowing for ad targeting, which has proven to be more effective and provide a higher ROI for brands. • Major players within the messaging space start to develop a range of services that move beyond just communications, including social gaming integration, payment tools and utilities that integrate into a user’s lifestyle.
  • 18. How Snapchat Could Revolutionize The Future Of Advertising • Snapchat could potentially incorporate GPS functionality allowing users to send Snaps that reveal their current location. This could completely transform how brands are able to communicate with Snapchat users. • Snapchat’s out-of-box format encourages brands to think like they have never done before – building messages for 10-second self- destructing pieces of content within a 5-inch screen – and it has the potential to revolutionize the future of advertising.
  • 19. Disadvantages To Snapchat • The demographics are advantageous to the right brand and message but also make it a fairly narrow platform. • Snapchat's structure makes it difficult for a brand to build a large audience. • Unlike Facebook or Twitter, where user interaction is organized around user profiles and user feeds, Snapchat is organized around direct communication between users. • Also, Snapchat users typically can’t easily reshare brand content, so there’s no viral effect achievable within Snapchat. • It's time-consuming for brands to open and view responses to their content in Snapchat, much less respond to any of them. • There are no metrics-yet. Brands have to manually count their followers and other basic metrics, such as how many people have opened their snaps. Snapchat only offers user "Scores," which counts the number of Snaps sent and opened by each user.
  • 20. • Snapchat is still smaller than the largest social networks but we estimate it reached 82 million monthly active users globally as of May 2014. • The majority of Snapchat's user base is female and between the ages of 13 and 25, a difficult-to-reach demographic. • Several marketer-friendly features have been introduced in the last eight months, including videos known as "Snapchat Stories," which don't disappear. • Snapchat is responsible for developing a format that enables brands to pioneer new ways of communicating with audiences. • Snapchat does pose disadvantages: There's a lack of metrics, and it favors private one-on-one communication, which tamps down on virality. Key Takeaways
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