Snapchat and Instagram Revamp Advertising

Apr 20, 15 Snapchat and Instagram Revamp Advertising

Mobile apps have largely been relatively ad-free, due to smaller screen size and how difficult it would be to track results. Developers are starting to embrace the potential of ad revenue, however, though the exact format varies by app. Photo sharing app Instagram will soon be integrating a shopping option to the existing ads, while Snapchat has announced that their first ad platform is no longer for sale.

Instagram is working to integrate buying options into companies’ content. The first link from content to a sale page was placed by Banana Republic, at the end of a brief slideshow about the brand’s newest products.

The key to Instagram’s success with their ad placement is the exclusive air they maintain. Companies are paying premium prices for photo and video campaigns, as Instagram offers data suggesting that sales are boosted more by impressions than by clicks. Instagram’s focus on more streamlined advertising is based on preserving the user experience, in an attempt to keep its 300 million users coming back.

Snapchat appears to have new ideas on the horizon, as they have stopped offering Brand Stories as a marketing option. Brand Stories first appeared about six months ago, allowing brands to share content with users, whether they followed the brand or not. The sudden withdrawal of the Brand Stories service was not due to lack of interest.

“We’re always fine tuning to ensure we deliver the best possible experience for our community,” a Snapchat spokesperson told Recode.net. In January, Snapchat debuted a new content section called Discover, where brands are able to publish stories. The Discover content has been quite popular, and advertisers often pay over $100,000 a day to have their content featured. Over the next year, brand marketing spending is expected by 63% of marketers to increase significantly.

Instagram and Snapchat are only two of the many apps becoming highly sought-after by advertisers. With their enormous user bases and growing popularity, it makes sense to reach as many potential consumers as possible.

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