Snapchat, founded in 2011 by Evan Spiegel, is known as a young person’s app. Why should you take this app seriously if you’re a business owner? Last quarter, Snapchat brought in $298 million in revenue. Snapchat currently has about 186 million daily active users. Snapchat earns about $1.60 per quarter in revenue per daily active user.
Like other free social media companies, Snapchat earns revenue by advertising to its user base. The average Snapchat users open the app over twenty times per day and spend about thirty minutes on the app. The daily average of total Snaps created by users is around 3 billion.
As users spend more time on computers and mobile devices each year, companies are spending more money on digital advertising. According to a recent report by MAGNA, online advertising sales now account for 51.5% of all U.S. advertising sales. Digital advertising allows companies to obtain better data on return on investment (ROI), and precise demographic targeting.
If you are a business owner over the age of 34, chances are you do not personally use Snapchat. But that’s no excuse for dismissing or not understanding the app. 85% of Snapchat’s users are between the ages of 18-34, with just 15% over the age of 34. On a given day, Snapchat reaches 41% of 18-34-year-olds in the United States.
Plenty of Snapchat users are age 25 or older, meaning they have real purchasing power. Snap’s fastest-growing demographic is 25 and up, with more than 50% of Snapchat’s new daily users coming from this group.
If you’ve never used Snapchat but want to reach Snapchatters through advertising, it can be difficult to know where to begin. Luckily you don’t need to become a Snapchat user in hopes of learning the app, because you can hire an agency who has experience in Snapchat advertising.
In this guide, I’m going to teach you everything you need to understand about Snapchat advertising and how to find the perfect Snapchat advertising agency for your needs. I’ve also combed through hundreds of websites and user reviews to bring you a top five list that has the best of the best agencies, so you don’t have to spend hours of your time comparing them.
What You Need to Know About Advertising on Snapchat
If you aren’t already a Snapchat pro, you need to begin by learning the basics about how Snapchat advertising works. Once you grasp the fundamentals of Snapchat’s advertising services, you will be better able to choose the right agency to run a successful campaign on your behalf.
What Does a Snapchat Ad Agency Do?
The best Snapchat advertising agencies bring years of experience, knowledge, and insight to help you choose which type of campaign to launch. You will set goals together, and discuss budgeting. Depending on whether you already have a marketing department, the agency may or may not assist you with branding. Then they will create a branded ad to run on the platform.
A good agency works with you to determine goals, adjust existing marketing materials for Snapchat, and adjust and optimize your ads over time to meet your goals. They will use Snapchat’s metrics as well as their tools to report results to you on a regular basis, so you can understand your return on investment (ROI) and make important decisions with confidence.
What Can a Snapchat Ad Agency Achieve for You?
A Snapchat ad agency can achieve a plethora of different marketing goals for a business. Some business owners have false assumptions about the limitations of digital advertising on Snapchat, but in reality, the platform is a great place to achieve various desirable outcomes:
- Increase in-store sales
- Increase online sales
- Promote new products
- Lead generation
- Promote your app
- Promote videos
At its core, Snapchat advertising is about forming relationships with dedicated daily active users. The platform is conducive to creativity, and a good agency will offer up their creative skill set, paired with an analysis of your needs, to create a vision together with you.
Snapchat can make it easier for users to find out about your business and share what they’ve learned. It can help you find new online or in-person customers or leads, and create deeper relationships with existing customers, improving your conversion or sales rate.
The app is also great for creating excitement and momentum around the launch of new products, services, and even apps. If you design and launch a great app, Snap is the perfect way to keep users engaged and telling the world about your app.
Precise demographic targeting on Snapchat helps to ensure that your target audience views your advertising videos, and the built-in metrics (as well as in-house ad agency tools) allow you to customize further and target the appropriate demographics, building on your success.
Options for Advertisers
Snapchat offers different options for advertisers, so another reason you probably want to go with an agency is that the various options can get a little bit overwhelming. There are three main types of ads:
- Snapchat Ads
- Sponsored Geofilters
All Snapchat advertising is interactive to varying degrees.
With Snapchat Ads, advertisers get to decide between Web View (also known as interactive Discover Ads), Long-Form Video (used to drive traffic to trailers, for instance), Articles, and App Install (a short video with a call-to-action to install an application at the end).
Snapchat Lenses are a perfect example of Snapchat’s innovation. Users taking selfies use lenses a LOT. They are a visual overlay of an image or animation that shows up on the phone screen of anyone viewing an image, and they have shown excellent results for increasing brand awareness and purchase intent. Snapchat Lenses can reach about 16 million users per day.
Geofilters are similar to lenses but linked to a specific place or cause. If you run a restaurant, for example, an ad agency could create a geofilter campaign to help promote brand loyalty among existing customers when they visit and increase brand awareness among their friends. National delivery campaigns have resulted in exposure to 40-60% of daily users!
Snapchat’s 3V philosophy, or “Vertical Video Views,” is another feature that sets it apart from other social media platforms. Because most users capture and view the video in a vertical or portrait (as opposed to conventional horizontal or landscape) orientation, Snapchat has embraced this tendency and applied it to advertising.
Native Snapchat ads are vertical-made and mobile exclusive, filling up the whole device screen. Short video ads are perfect for telling your company’s story. The ads are always full-screen with the sound on, and Snapchat’s internal studies show that vertical ads perform up to nine times better than traditional mobile video ads!
3V means your company probably can’t use its existing videos for Snapchat advertising, but a good Snapchat advertising agency will set you up with everything you need to understand and meet Snapchat’s unique creative requirements for future ad video submissions.
Snapchat offers advertisers daily, weekly, and annual rates and their minimum daily spend budget is $100 to get on the platform.
Snapchat uses a pricing approach called goal-based bidding (GBB). The pricing structure varies depending on what type of ad you purchase (Web View, Long-Form Video, App Install, Article, Lenses, or Geofilters).
Goal-based bidding is offered by cost-per-thousand, which is called “CPM” for short. You can place CPM bids for swipes (which are like clicks), impressions, or app installs depending on the type of ad. The CPM price will vary with different kinds of advertising and different user actions.
You can also purchase each type of ad several different places: from Snap Ad Manager, Snap Ads API partners, the ad auction, or direct from Snapchat via an Insertion Order. If you hire a professional Snapchat advertising agency, they’ll help you decide the best strategy to use, and the best place to buy your ads.
Demographics, Targeting, and Metrics
Snapchat features excellent built-in demographic insights and targeting techniques, which makes it a capable platform for precisely targeting your advertising to the appropriate user and getting a good ROI.
Here are some ways Snapchat allows you to target user demographics:
- Interests – Snapchat has 60+ interest categories including topics like festivals, news, politics, and parenting, all based on users’ actions on the app
- Classic demographics – based on factors like name, age, language, household income, and education
- Device Attributes – device, OS, carrier, and network
- Snap Audience Match (SAM) – Create a custom list, discover a new audience similar to your current audience, a list of all customers who have engaged with your content, and more.
An agency that specializes in Snapchat will know the ins and outs of running a targeted Snapchat campaign with these built-in features and pass the savings on to you, the advertiser.
Snapchat’s metrics allow for instant feedback on the effectiveness of an ad campaign. An agency will share these metrics with you, and work with you to apply the valuable lessons contained within the data.
There are five significant metrics Snapchat uses to verify your ads’ effectiveness:
- Reach – users reached by the ad, and their demographics
- Viewability – the number of users who have viewed your ad
- Resonance – information on people’s thoughts and feelings about your brand derived from Snapchat and partner polls
- Reaction – the impact of the ad on driving purchases or other actions
- Verification – the number of times Snapchat has attempted to serve your ad
With dozens of ways to target demographics and numerous ways to verify the effectiveness of an ad campaign, Snapchat can be a treasure trove for advertising just like Facebook advertising or a complicated nightmare, depending on your comfort level with the platform.
Instead of trying to learn from the ground up, most businesses looking to advertise on Snapchat or advertise on Twitter should choose from among the top ad agencies that specialize in Snapchat.
Top FIVE Snapchat Advertising Agencies
Take the guesswork and anxiety out of winning customers on Snapchat by going with a proven ad agency. If you haven’t already gotten an idea of what you want out of an agency from the previous sections, here are our top picks.
#1 Firebelly Marketing
Firebelly Marketing is a social media marketing agency initially founded in 2007 in Indianapolis, IN. Their singular mission is making brands more likable and profitable via social media. Firebelly is our top pick for Snapchat advertising; they offer social media audits, social media management, ad management, blogging, community management, and influencer marketing.
The marketing director of a rug and furniture company hired Firebelly to increase the growth of their audience. Their customer base and traffic grew throughout the social media campaign, and Firebelly was able to deal with any conflicts that arose. The client was impressed with the way Firebelly exceeded expectations in a tight and competitive market.
Firebelly is the 2018 winner of Sprout Social’s distinguished CULTIVATE award for going above and beyond in providing excellent social media services to clients. They aren’t cheap, but their premium services are of great value.
#2 Media Bounty
Hailing from London, Media Bounty is the U.K.’s leading social media marketing agency. They focus on long-term growth through deep insights, outstanding strategies, and “kick-ass creative.” Media Bounty only works with bigger companies with an ad buy budget of at least $10,000 per month.
The marketing manager of Cellar Trends, a beverage distributor company, hired Media Bounty for SMM and digital branding. They say that the “number of video views has increased markedly since Media Bounty was first engaged” and find the team’s exceptional understanding of marketing technology to be “a hallmark of their high-quality work.”
Media Bounty isn’t an inexpensive agency, but they regularly handle campaigns in the millions of dollars, so you know they’ll bring a winning perspective to meet your advertising needs. They have received three awards from The Drum’s Recommended Agency Register, and two awards from RAR Digital Awards.
#3 Viral in Nature
Viral in Nature, based in Calgary, Canada, is multiple award-winning ad agencies entirely focused on SMM. Three different market research companies have selected Viral in Nature as one of the top social media and agencies in the world.
The owner of an outdoors lifestyle brand hired Viral in Nature to increase his company’s social media presence. The agency oversaw social media campaigns and created relevant video content. The owner says Viral in Nature were excellent listeners, and the campaign went smoothly with excellent results.
If you run a smaller company with a tight budget, Viral in Nature is a good choice. Their relatively low cost per hour makes them attractive for smaller organizations, and they will bring you a good return on your investment.
Based in Hollywood, CA, AdvertiseMint is another agency that focuses exclusively on social media marketing. Depending on whether you have other needs, that could be a pro or a con. Some companies choose to merge their Snapchat advertising into their overall marketing campaign, but others benefit from allowing an SMM specialist to manage their social channels (Instagram, Facebook, Google Ads).
If you need a new perspective on digital marketing via Snapchat or need a campaign rolled out ASAP, you can’t go wrong with AdvertiseMint. They pride themselves on their agility and fast-paced ad campaigns.
#5 i76 Solutions
When i76 Solutions began as a digital marketing shop in Philadelphia, PA they were tightly focused on strategy, execution, and analytics. They later grew into a full-service marketing agency that delivers their customers results in all areas of marketing, but they maintain a strong focus on digital marketing and social media marketing.
AAA Mid-Atlantic, a car insurance and emergency roadside assistance provider, ran a seven-figure campaign with i76 Solutions. Within six months, they had earned significant upticks in brand awareness and membership rates. AAA says that the i76 team was “innovative, detail-oriented, and knowledgeable.”
I76 is a top marketing agency in Philadelphia. Their skilled team of designers and developers can work with you on every aspect of the digital process.
In the world of Snapchat advertising, the learning curve is long, but you shouldn’t let that discourage you from targeting customers through the platform. Unlike the old days of digital marketing when a company could handle everything in-house, the current climate dictates that it is wiser to delegate.
If you are willing to look for an agency outside your company to run your Snapchat advertising campaign, you can reap all the rewards offered by Snapchat: innovative features, relationship-building with a loyal user base, precise demographic targeting, extensive metrics, and enough options to suit nearly any type of advertiser.
If you’re having trouble deciding which agency to go with, we recommend Firebelly Marketing as the overall top pick. They’ve been around a while, but they know how to adapt to new trends. Because they focus exclusively on social media marketing, Firebelly brings the depth of knowledge you’ll require to run a successful Snapchat campaign.
Best Facebook Advertising Agencies
Best Instagram Advertising Agencies
Best Twitter Advertising Agencies
Best Snapchat Advertising Agencies
Best Google Ads Advertising Agencies
Best YouTube Advertising Agencies
Best Amazon Marketing Agencies
Best Mobile Advertising Agencies