It looks like marketers prefer to target Instagram users than spending money on Snapchat
Advertising on social media is a very profitable. But not everyone can get a piece of the pie. And it looks like Snapchat has to work pretty hard to get marketers and advertisers on its side. On the other hand Instagram doesn’t seem to have a problem with them. In fact is more popular amongst advertisers than Snapchat.
This report comes from Fortune. According to a series of studies published by RBC Capital Markets, in collaboration with Ad Age magazine, advertisers are not interested on Snapchat and spending money on the platform but they are more interested on Instagram and Facebook.
The results of the study come after Snap Inc. went public and the fact that it has 150 million users.
The survey gathered data from 1,600 advertisers. The participants were asked which platform they more keen to use for advertising. Approximately 65% of them chose Instagram and on the other hand 40% of them said that they were interested on Snapchat.
Now the fact that advertisers don’t want to use Snapchat as much as Facebook come from the fact that users don’t engage with the ads. This can be damaging for an ad campaign and it produces almost no revenue.
Almost a month ago we posted a survey from the firm Fluent. The survey asked over 3.000 Americas about Snapchat and find out more about the app and maybe shed some light regarding the concerns of the financial community and the company’s recent IPO.
One of the most interesting founding is that 48% of adults believe that Snapchat is a fad and 52% think that the app is here for good. On the other hand if a similar app appears then 62% of the users will prefer the new one.
Also according to the survey “69% of all users say they skip ads on Snapchat “always” or “often”, and that number is actually 80% amongst those most sought after, hardest to reach 18 – 24 year olds.”
Also the RBC Capital Markets asked the advertisers to rank the social media platform and services based on their satisfaction with the return on investment (ROI), with points from 1 to 8. The results place Google and Facebook at the top two places, with scores 6.98 and 6.72. But Snapchat got a 3.43.
The study used a wide range of marketers and advertisers including the ones with huge budgets – $500 million and more – as well as smaller budgets. And 450 of them want to increase their spending budget on Facebook and Google, 119 want to increase the budget on Snapchat.