The updates to Snapchat’s Commerce Power Pack will help advertisers better target their audiences in the run up to Christmas.
Snapchat has launched its Commerce Power Pack to give advertisers access to a suite of new performance tools that can drive campaign efficiency for the upcoming golden quarter.
The updates include smarter product discovery with dynamic product ads (DPAs) that use an AI recommendation model – which draws on conversion signals and catalogues – to match ads with audiences.
Fashion and beauty brands are some of the biggest advertisers on Snapchat. These verticals are known to ramp up advertising in the run up to Christmas in preparation for higher spending in gifts.
Brands such as L’Oréal Cosmetics, Nike, and Gucci all have AR ad mechanics to enable virtual try-ons or face lenses to simulate make-up products, or the gamification of a brand’s offerings.
A study, highlighted by Snapchat, found DPA campaigns delivered a 22% improvement in a seven-day CPA when optimised for pixel purchase.
These DPAs will be introduced to sponsored Snaps as part of the Commerce Power Pack and will bring a catalogue of products directly into Snapchat’s new, most-used surface, chat.
As much as 85% of Snapchat users engage with the chat function on a regular basis, and the new capabilities allow advertisers to push the most relevant products to the front of the platform.
Advertisers will also get flexibility to optimise campaigns for return on adspend, with features available globally.
As shoppers move fluidly between conversation, inspiration, and purchase, Snapchat has expanded capabilities for recommendations from friends, product discovery using Spotlight, and finding stores on Snap Map.
Sid Malhotra, vice president of small-to-medium customers, said: “The holidays are the most competitive stretch of the year, and every dollar has to maximise returns. Snapchat gives businesses a faster path from discovery to action, and the Commerce Power Pack builds on that advantage with smarter optimisation and higher value outcomes.
“Last Black Friday/ Cyber Monday, Northbeam clients cut the cost of winning a new customer by 20% on Snapchat, while every other major platform got more expensive. That’s what spending smarter on Snapchat looks like.”
Snapchat drives conversion as much as a half-day faster than other leading social media platforms, according to Transunion research. The study also found that Snapchat drove the highest return on adspend of all 12 media channels in commerce.
