Snapchat | April 26, 2021
Advertisers are increasing their spending on Snap as the world reopens.
Snap reported US$770 million in Q1 revenue on Thursday, a 66% growth year on year, as the number of advertisers it deals with nearly doubled.
Snap's ad business is expanding in all ways. Direct response ads currently account for more than half of the platform's revenue. Snap, on the other hand, tripled the number of upfront commitments it got from brands this year compared to 2020.
Over the same time frame, Snaps' user base rose by 22% to 280 million, while average revenue per user increased by 36% to $2.74 year over year.
Since the majority of Snap's users use Android smartphones, insulating it somewhat from upcoming tracking changes on Apple’s iOS 14.5.
Advertisers are increasing their spending on Snap as the world recovers from the pandemic and the ad economy heats up again.
Snap, which has been beefing up its direct response and e-commerce capability, is seeing travel and leisure advertisers, which have been hard hit by the pandemic, rebound “with a fury,” according to chief business officer Jeremi Gorman, highlighting the company's March acquisition of AR e-commerce platform Fit Analytics.
Ecommerce, CPG, technology, streaming, online education, and telco brands are all showing interest in the platform.
“We are seeing the return of some previously powerful categories, such as theatrical and movies,”she said.
Snap is prioritizing augmented reality, partnering with brands such as Sweat, Gucci, The North Face, and American Eagle on branded lenses this quarter. In Q1, almost half (40%) of Snap users used filters regularly, with more than half of them being branded.
“Augmented reality is one of our most exciting challenges as we look forward, and we are investing heavily in both core technology and community-facing AR apps on our service,” Evan Spiegel, co-founder and CEO of Snap, said during the earnings call.
Snap also introduced a TikTok-rival update, Spotlight, in Q4, which was used by more than 125 million people in Q1. India, Mexico, and Brazil are now among the countries that have access to this feature.
The IDFA to drop
Snap is still unsure how Apple's App Tracking Transparency changes, which are set to take place on Monday, would affect its business. However, the company expects to grow by 80% in the second quarter.
“It is not yet clear what the longer-term effect of the iOS platform updates might be on the topline momentum of the business,” said chief financial officer Derek Anderson.
According to Spiegel, Apple's decision to delay the updates until April has given Snap time to implement SKAdNetwork, Apple's solution for measuring user activity across its applications, which it is testing with partners along with other "privacy-centric" solutions.
MEDIASMART | October 27, 2020
mediasmart, Affle's self-serve mobile programmatic platform, today announced the launch of its Audience Targeting & Household Sync technology on Connected TV (CTV). Though programmatic CTV ads have been available on mediasmart for sometime, this new technology now enables brands to make CTV ads more engaging by syncing CTV ad campaigns with ads on other connected devices in the same household. They can thus make their CTV ads significantly more relevant by personalizing them for specific audiences within the household. Commenting on this significant new launch, Noelia Amoedo, CEO of mediasmart said: "Programmatic ad spend on video is projected to go from 10% to 50% by 2021 with CTV expected to be over 15% of that spend. Consumption of content on CTV is growing dramatically across the world as consumers are increasingly becoming cord cutters and preferring CTV over traditional linear TV experiences.
SOCIAL MEDIA ADVERTISING
Kargo | October 19, 2021
Kargo, the leader in digital high impact advertising, today announced the acquisition of the commerce-driven paid social advertising powerhouse StitcherAds. StitcherAds’ paid social commerce platform expands Kargo’s robust integrated omnichannel product suite, providing a comprehensive set of solutions for advertisers looking to execute digital campaigns across multiple screens to drive Return on Ad Spend (ROAS). With the addition of StitcherAds, Kargo is able to bring performance-marketing to retailers across multiple platforms, effectively “collapsing the traditional customer journey” and reducing the complexity in a brand’s marketing strategy.
StitcherAds is a commerce-centric marketing platform that drives online and offline sales for retailers and brands within the walled gardens. The technology uses real-time product feeds and consumer data to generate personalized, dynamic product ads, including a digital circular experience. Its product discovery ads are delivered across Facebook, Instagram, Snap, TikTok, and Pinterest.
With the acquisition of StitcherAds, Kargo will have $550 million in total media spend under management, coming from major retail advertisers including Macy’s, Saks Fifth Avenue, Bed Bath & Beyond, Finish Line, JOANN Fabrics & Crafts, and Calvin Klein. Kargo also expands its physical footprint substantially, growing from 220 to 350 employees across 13 offices worldwide while maintaining StitcherAds’ headquarters in Ireland.
“I’m excited to welcome StitcherAds into the Kargo family at such an exciting time in our history. The StitcherAds platform offers powerful advertising capabilities for our retail and CPG clients. We can now provide a true multi-platform product portfolio that expands our footprint into paid social,” said Harry Kargman, Kargo Founder and CEO. “This acquisition is another step towards our strategy to offer a full suite of solutions for our clients.”
StitcherAds and Kargo are a fantastic match, bringing together Kargo’s premium advertising marketplace with our commerce-driven approach to social media marketing. We’re thrilled with the new opportunities to offer full-funnel solutions that this acquisition affords us, and the depth of omnichannel capabilities we’ll bring to the market.”
Declan Kennedy, Chief Executive at StitcherAds
Kargo is a mobile-first, editorial-led global marketplace of unique multi-channel advertising and commerce opportunities for brands. Our advertising partners fill the ranks of the Fortune 500 and our invitation-only editorial marketplace sets the standard for quality and reach, including 100% of all U.S. smartphone users. With a focus on innovation, our creative team designs exclusive new ad formats that drive breakthrough performance and win industry awards. Kargo is 250 diverse employees strong with offices in NYC, Chicago, Dallas, Los Angeles, San Francisco, Auckland, Sydney, and Singapore.
Founded in 2009, StitcherAds helps advertisers and agencies scale full-funnel performance marketing campaigns on Facebook, Instagram, Pinterest, Snapchat and TikTok. Since conception, StitcherAds has empowered some of the world’s largest eCommerce and retail businesses worldwide, using data-driven automation to increase the revenue impact of their ad spend. The company works on a hybrid service model, onboarding clients from fully managed service to self-serve to ensure long-term success with their software. StitcherAds is a leader in both speed and achievement in direct response innovation on social media publishers.