Recent news unveiled that Snapchat will be expanding its ad targeting capabilities to include behavioral targeting and 1st party data targeting, which will be rolled out to advertisers in Q3 and Q4 2016. To date, targeting on Snapchat has been limited to basic user information such as age, gender, location, device, and mobile carrier.
Snapchat’s introduction of Lifestyle Categories, enables advertisers to target users based on content they consume on Snapchat. With Lifestyle Categories, Snapchat will understand what consumers like, solely based on the celebrity accounts they follow and the promoted stories they view. By understanding what customers are most interested in, brands can leverage this information to deliver precise recommendations.
Audience Match will allow advertisers to use 1st party email addresses and mobile device IDs, and anonymously match that data with Snapchat’s own pool of consumer data. Similar to Facebook and Twitter’s CRM targeting capabilities, Audience Match helps brands extend targeting to user activities beyond Snapchat and reach their own customers within the Snapchat experience. Advertisers can segment customer lists based on things like repeat or infrequent shoppers.
WHY IS THIS a GAME-CHANGER?
Brands have already seen significant success using similar tools on other social platforms like Facebook, Twitter and Pinterest, so it is a clear next step for Snapchat to add this capability to its product offering.
According to eMarketer, over 50% of social network users will be regularly using Snapchat this year, but Snapchat currently represents less than 3% of social media spend due to limited ad opportunities and targeting capabilities to date. The addition of the new audience and behavioral targeting marks a significant change in the ability of advertisers to effectively use Snapchat as a marketing tool.
CONSIDERATIONS for MARKETERS
And leveraging behavioral targeting through Snapchat can only call for efficient results. According to a recent study, the Digital Satisfaction Index™ (DSI), conducted by Performics and Northwestern University, personalization is very important to millennials; they want experiences and messages tailored to them, rather than being fed information that’s irrelevant to their interests.
Users don’t have time to sift through articles and other forms of content to decide what they want to read or watch; instead, they go directly for the content that’s intriguing and appealing. Snapchat’s quick segments are exactly what marketers need to capture the attention of busy consumers. Overall, Snapchat’s plan to launch behavioral targeting only furthers the notion that we are moving into an “always-connected” space, reaching consumers when it’s most convenient for them.
In response to advertisers, Snapchat has made a concerted effort in 2016 to improve their ad offering through expanded targeting and reporting capabilities. While the targeting capabilities are not new to social advertisers, they show great strides in Snapchat’s efforts to provide insight into its user-base and enable advertisers to present more relevant content to Snapchat audiences.
The rollout of Snapchat’s new targeting capabilities are timely, given the fact that the app will be launching their ads API beta in Q4. Advertisers heavily rely on more insightful user data to optimize self-service ad campaigns, so this advanced targeting is an elemental piece of a successful Ads API offering.
As Snapchat continues to develop its product offering for users, we anticipate that they will find additional ways to understand user behavior within the app, to improve targeting capability, ad relevancy and overall advertiser performance.