Snapchat has completely evolved from being solely a person-to-person photo sharing platform. The app has amassed over 160 million daily active users, achieved by introducing a number of unique features including filters and stories. Snapchat’s popularity inevitably caught the attention of competitors like Facebook and Instagram who have borrowed the app’s key features and integrated them into their platforms.
However, Snapchat now is following Facebook’s lead by debuting self-service ad tools to compete for a bigger share of advertisers’ ad budgets. The app has been introducing ad capabilities and tools in the same vein as those being offered by leading sellers of mobile ads for the past year.
Companies like Facebook and Google have remained top dogs when it comes to advertising by offering an intricate array of tools. These tools help advertisers take their marketing to the next level with campaign reach, audience targeting, performance measurement, and automated and self-service buying.
Snapchat’s new self-serve ad manager for buying video Snap Ads will allow smaller businesses to advertise on the app instead of just giant brands. The new tool will broaden the range of advertisers, which could help the company increase its revenue in a big way. Snapchat will also be rolling out a mobile dashboard and a business manager alongside the ad manager.
eMarketer estimates that by the end of 2017, Snapchat’s net digital ad revenues will grow drastically by 163.3%, and growth will stay in the high double digits through the next two years. Snapchat’s new business features are currently in testing with more than 20 businesses. The tools will be available to marketers beginning in June.
Snapchat has proved itself to be a platform popular among millennials, which will make these new features ideal for marketers targeting that audience. Facebook still conquers when it come to social media advertising and influencer marketing, but App Annie found that Snapchat has a truly unique and exclusive audience when analyzing user overlap across various platforms. Snapchat has continued to stay relevant with their introduction of fun and unique features. However, the app’s decision to follow Facebook’s lead for a change could result in Snapchat becoming a serious advertising competitor.