So why are marketers still clinging on to the platform?
Amid the growth slump, studies have shown that Snapchat still dominates the demographic comprising teens and younger users.
These audiences will drive substantial influence on purchases during the 2018 holiday season. If your product or service caters to these people, your brand better heed the latest Snap ad options. Consider how you can capitalize these offerings in your strategy.
The company has announced new Snapchat ad tools and options to drive direct response. And it guides Snapchat users to complete purchases within the app.
Collection ads are now available to advertisers through Snapchat’s ad-buying platform.
Marketing Land reported that Collection ads allow brands to show products with thumbnails at the bottom of an ad. When tapped, the thumbnail opens a specific product page. It links to a purchase option aligned with the Snap content.
Snapchat tested the ad option with partners in June. The testers reported positive results.
Marketing Land said Wish.com had 17 percent more engagement with Shoppable Snap ads than standard Snap ads presenting the same product.
Shoppable Snap ads also delivered better results for other partners: eBay had five times more engagement and Guess had four times the engagement.
But I digress.
Uploading product catalog feeds
Snapchat will also add a new option for retailers to upload product catalog feeds. The uploaded feeds will be available in Collections and other Snap ads.
Expanding pixel targets
Snapchat will expand its pixel targeting to track the specific actions of website visitors. To make this possible, it has added more than 30 new agencies into its Snap Partners program. Brands have more options to choose from if they need Snapchat advertising assistance and expertise.
In turbulent waters
Recent months have shown how turbulent Snap is and how muddled the sentiment is on its business strategy and app.
The company reported a drop in daily active users in its 2018 second quarter financial report.
Still, Snapchat boasts its higher engagement rate as its strength. While Facebook has more active users, Snapchat users come back to the app more often. It means the Snapchat advertisers have a higher chance to influence users.
The company has yet to prove this in numbers. This is why new Snapchat ad options are vital. If Snap boosts its average revenue per user over the 2018 holiday season, investors may be less wary of its potential to generate revenue. It will open opportunities for future development.
An unquestionable grip of the younger demographic will not suffice. Snap must prove its advertising value to earn more. Doing so will help offset the negative sentiment among shareholders.