Home / Tech Insider / Adversiting / Snap is launching a direct assault on Instagram

Snap is launching a direct assault on Instagram


Evan Spiegel
Snap
Inc.


  • Snap is trying to capitalize on its killer earnings by
    launching a direct assault on Instagram.
  • The company is offering free advertising credits worth
    “several hundreds of dollars” to attract new advertisers —
    specifically those buying vertical video ads on Instagram,

    Recode first reported
    .
  • The hope is that offering such credits would enable the
    company to attract more small advertisers,  and eventually
    jack up ad prices and eventually boost revenue.

Following a
surprising strong quarter
, Snap wants to keep the momentum
going by wooing advertisers from its arch-rival Instagram.

The company is offering free advertising credits worth “several
hundreds of dollars” to attract new advertisers — specifically
those buying vertical video ads on Instagram,
Recode first reported
. A Snap spokesman confirmed the news to
Business Insider.

Snap began offering the free ad credits to advertisers running
vertical video ads this week, the rep said. Snap’s sales team as
well as partners are reaching out to advertisers to notify them
of the offering.

They are directing advertisers to a web
form called “Accelerate
for Social,
” which requires brands interested to
upload evidence in the form of a proof of purchase that they
bought ads from a Snapchat competitor within the past three
months.

While Instagram Stories unsurprisingly remains Snapchat’s biggest
rival in the mobile-friendly vertical video ad space, the format
is also used by Pinterest and mobile publishers like
AdColony, ChartBoost, and Vungle. So brands that
have run ads on any of those platforms can participate.

The outreach is primarily targeting advertisers who focus on
direct response (such as urging people to install apps or
purchase items on the web) as well as other mid-market
advertisers, the spokesperson said. Snap, in other words,
is taking
a page out of Facebook and Google’s playbook,
both of
whom have racked up ad spending from millions of small
advertisers using their respective automated platforms.

Snap doubled its total revenue from app install campaigns since
the beginning of the fourth quarter, and also decreased cost
per installs for its advertisers, chief strategy
officer Imran Khan said on the earnings call this week. It
also drove 15 times more app installs in December compared
to April. So it’s no wonder then that it is doubling down on
these ad formats.

While Snap’s 2017 fourth quarter earnings were a welcome relief
for the company, it knows that it must continue to increase its
roster of advertisers.

90% of all its ads are now programmatic, or are sold through
automated software that auctions off ad spots to the highest
bidder. But there aren’t enough advertisers bidding for these
spots, so the prices remains low. Offering such credits and
bringing more brands on board would theoretically enable the
company to jack up ad prices and eventually boost revenue.

This is not the first time that Snap has attempted to lure
advertisers with free trials and credits. In October, for
instance, it launched a dedicated benefits
program called
“Snap Accelerate”
to incentivize startups to
advertise on the platform. It has also been aggressively
targeting smaller businesses in recent months, rolling out a
number of self-serve platform and product
rollouts
.


Source link

HostGator Web Hosting

About admin

Check Also

A Baird analyst valued Amazon’s advertising business at $4 billion in 2018

Jeff Bezos and his wife MacKenzie Bezos. Danny Moloshok/Reuters Baird analyst Colin Sebastian predicted Amazon …

Leave a Reply

Your email address will not be published. Required fields are marked *