Snap, the parent company of Snapchat, has confirmed that they will now offer free ad credits to brands that have already advertised their products and services through their competitors' ad platforms, such as Facebook, Instagram and Pinterest.
This includes any advertisers that have recently run 'vertical video ads' on Instagram Stories, which is very similar to Snapchat’s own Stories function, and the mobile networks AdColony, ChartBoost, and Vungle.
As Adweek explains, Snap has already begun reaching out to brands to gauge their interest, and directing these brands to Accelerate for Social. Here, they'll be required to provide basic information, such as their names, work email addresses, and Snapchat business account ID, as well as evidence that they have run digital ads through competing ad networks in the past three months.
At the end of last year, we reported that the platform would be targeting start-ups with a new program called 'Snap Accelerate'. As we explained, start-ups in the commerce, gaming, and entertainment industries that have their own mobile app would be given access to a number of exclusive benefits (such as early access to new features), and be able to receive creative service credits to create and purchase ads.
With Snap Accelerate, the worth of the features each start-up receives is dependent on their business's size and stage of growth. However, a source told Kurt Wagner of Recode that the brands who are chosen to participate in the new program would receive free ad credits worth "several hundred dollars".
The source also said that there would be no minimum spending requirements, though these free credits may only be used to purchase Snap Ads.
The TJM take: Snapchat has somewhat of a bad reputation for the ads they allow to be run on their platform. After releasing its own self-serve ad platform back in June (which was free for brands to use without mark-up, or the need to work with third parties or Snap's own sales team), there was a floodgate of 'bad ads' on the platform, including direct-response ads, and app-install ads. By offering these new free credits to those that have advertised through their competitors, it's clear that they're trying to repair their reputation and grab market share.
Although Snapchat's younger audience isn't the most obvious to target, Generation Z (which refers to those born between the mid-1990s and mid 2000s) possess serious buying power. In fact, this is said to be a whopping £28bn annually.
Additionally, with Facebook being reported to have risen its average price per advert by 43% during the fourth quarter of 2017, now may be the best time for Snap to tempt their audience away from them...
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