Snap today announced its new Dynamic Ads advertising product to expand globally. The ad product introduced last fall permits advertisers to create ads in real-time with the extensive product catalogs of the brand. Snap provides a wide range of mobile templates for advertisers to choose from and then sends ads based on their interests to Snapchat’s 229 million daily active users. The ads have previously only been available in the U.S. Now, Snap says all international global advertisers can use the ad product.
Dynamic ads call advertisers as they make it easier for them to reach the user base of Snapchat. Advertisers must not spend time creating ads manually to fit Snapchat’s vertical format, but instead, synchronize their product catalog with the social platform to allow Snap to make their publicity on a real-time basis. Another advantage of this format is that Snapchat ads automatically adjust when product availability or price changes are introduced.
Dynamic ads started at a time when some advertisers felt the ad market on Instagram had become too crowded and higher prices. Snap’s ads were often more affordable than Instagram for DTC (direct to consumer) brands, in particular. The pandemic of coronavirus has rocked the ad business. But even when advertising budgets were slashed in the first quarter of 2020, Facebook, Google, and Snap technology giants remained a hot spot to direct consumers, meaning that consumers should take a particular measure, like to buy from the e-commerce sites.
For the marketers trying to produce predictable, observable returns, we’ve improved remarkably: we have been releasing hundreds of different apps over the past two years, including bid enhancement for conversion events including device downloads and innovative guided and measuring technologies, said Snap CEO Jeremi Gorman, during the benefits call. This helped to increase in particular our direct reaction profits, which has more than doubled in the last two years as a share of overall ad revenues. This approach has placed us in a good position for this acute challenge and has set us on the path to recovery in the global ad business.
It is now more critical than ever for Snap to cater to retailers and brands because COVID-19 lockdowns have accelerated efforts in e-commerce for retailers. According to data provided by IMRG (Interactive Media in Retail Group), today Snap reported the increase in Online sales of April to 10 years, representing a 23.8% annual increase. The ad format was tested beta by brands including Adidas, Topshop, and Farfetch ahead of today’s international growth. Additional Collaborative Marketing Alliances include 4C, Brainlabs, and Smartly.io.
Snap advocates an additional step in the global growth of its Dynamic Ads in its direct reaction to advertisers and in serving brands during the post-COVID era. The coronavirus has increased company needs to explore the digital distribution platforms and motivated us to be more creative about how they would achieve so, said Ed Couchman, GM of Snapchat, UK. I was surprised by the number of businesses who chose — well above what we had anticipated — to be involved about products after we launched beta testing.