SNAPCHAT AND THE IMPACT ON TARGETING MILLENIALS

Prepared forShari Weiss, ProfessorSan Francisco State University, California

Prepared byOlivia Goldstein, StudentSan Francisco State University, California

July 1, 2015

TABLE OF CONTENTS

LIST OF ILLUSTRATIONS .. iiiEXECUTIVE SUMMARY ... ivINTRODUCTION .. 1BACKGROUND.. 1PURPOSE.. 1SIGNIFICANCE 1SCOPE 1ORGANIZATION 1FINDINGS .. 2Millennials make up Snapchats primary demographic . 2Snapchat will continue to grow. 3Company growth in result of Snapchat involvement.. 6CONCLUSTIONS AND RECOMMENDATIONS.. 8APPENDIX... vWORK CITED .. vCHECKLIST vi

LIST OF ILLUSTRATIONSFIGURE 1: Social Media vs. Traditional Media Grid 3FIGURE 2: Snapchat Monthly Active Users 4FIGURE 3: Social and Messaging Apps Growth in Last Six Months .. 5FIGURE 4: Snapchat Marketing Strategies . 6FIGURE 5: Figure 5: Taco Bell, Acura, and Wet Seal Snapchat Examples . 7

EXECUTIVE SUMMARYPurposeThe purpose of this report is to look into Snapchat as an effective way to market to millennials. This report shows why and how companies can gain a larger following by using the social media app.FindingsData has proved that millennials make up a large portion of Snapchat users and are excited to use the app for all of its features. Findings show that Snapchat is continuing to grow and has the ability to be the top social media app. Findings also reveal that companies who have experimented with advertising through the app have gained positive publicity and have seen the results they hoped to achieve.Conclusions & RecommendationsBased on the findings, it is recommended that companies start advertising with Snapchat if trying to gain millennial following. Starting with basic use can help to eventually run campaigns and have a loyal following base.

INTRODUCTIONBackgroundSnapchat was created in 2011 by then Stanford students, Evan Spiegel and Bobby Murphy. The photo-sharing app allows sending a picture or video for up to 10 seconds before vanishing. The My Story feature allows the snap to be visible by the followers for 24 hours. Taking away the social part, Snapchat has released Discover, which allows top editorial teams to deliver news and stories. The app was created in Spiegels fathers living room and quickly took off with high school kids. Snapchat experienced a 67% growth between December 2013 and May 2014 and now has over 100 million daily active users. PurposeMany businesses today do not realize the benefits of using Snapchat to target millennials.

SignificanceSnapchat is experiencing a huge boom and is a great way to market to millennials. With Snapchats primary demographic falling within this age range, companies should be using this to their advantage. ScopeTo show why Snapchat is an effective way to target millennials and how companies can use Snapchat to build a loyal following by advocating their brand or product.OrganizationThis report will begin with a findings section. It will highlight millennials usage of Snapchat, Snapchats projected growth and examples of how companies are experience positive results after their Snapchat involvement.

FINDINGSMillennials make up Snapchats primary demographic86% of Snapchat users fall between the ages of 13 and 35. This large demographic makes it a huge target for any business trying to reach millennials. Millennials are spending so much time on the app that it is becoming a major competitor with top social media apps such as Facebook and Instagram. More than 60% of U.S. 13-34 year-old smart phone users are Snapchatters, and 32.9% of U.S. 13-34 year-olds have Snapchat accounts. Millennials account for over $1 trillion in U.S. consumer spending which shows how important their views and opinions matter about a company. With the purchasing power being so influential on the market, it is crucial for companies to reach out to this generation in hopes of capturing their interest. Time magazine continues to prove this by stating: By 2017, millennials will have more buying power than any other generation. But so far, theyre not spending like their parents did. The magazine continues to exemplify that unlike the baby boomers, millennitals prefer product reviews from people they do not know which are most often found online. All of this shows the importance of the digital age and social media on reaching out to this audience.

Digital and social media marketing is becoming more successful than traditional media marketing. Millennials purchase power and interest in social media proves that companies should be directing their focus towards marketing through social media. Below Figure 1 shows the differences, and pros and cons of social media and traditional media.Figure 1. Social Media vs. Traditional Media Grid

Created by Laura Kight. Data source http://socialmediastrategiessummit.com/blog/benefits-traditional-marketing-social-media/

The pros and cons of social media, along with the appeal, are more beneficial than the traditional method. So many millennials are using Snapchat and prefer to be targeted through digital forms making Snapchat a great platform to reach the demographic. Companies should consider Snapchat if trying to reach this market segment.Snapchat will continue to growSnapchat has come a long within its four years of existence, and is only going to continue to grow. The popularity of the social media app has grown to the top 5 free apps in the Apple App store. Approximately 400 million snaps are sent per day between its 100 million daily active users.

Figure 2 shows how significant the growth of Snapchat has been between its launch and November 2014. Figure 2. Snapchat Monthly Active Users

The monthly active users have increased at record breaking speed. From December 2013 to May 2014, Snapchat experienced a 67% growth in active users.

Snapchat is not a quick fad and is projected to continue this exponential growth. Figure 3 shows the growth in the last six months compared to other social media apps. Figure 3: Social and Messaging Apps Growth in Last Six Months

Snapchat is taking the lead in growth along side its competitors. It is surpassing major social media apps such as Facebook, Instagram, and Facebook Messenger.Company growth in result of Snapchat involvementThe few companies who have began marketing with Snapchat have seen great results proving that this might be the best new marketing platform. With so many daily active users and the constant growth the app is seeing, Snapchat provides a large available audience. Figure 4 explains the creative ways to market through the app.Figure 4: Snapchat Marketing StrategiesCreated by: Marketo and Column Five. Sorces: Mashable, Forbes, Business Insider, Inc, and All Things SDThese are six ways to capture a market using Snapchat. These are very creative and have a high success rate due to the new and fun styles that grasp attention. Companies should use this to their advantage to be ahead of the marketing game while they still can. Only a few companies have been able to try out this new strategy, but all have been effective. Because the app is so new, it is being received well. Figure 5 shows examples of the first few companies who have used Snapchat in creative ways to gain followers and attention.

Figure 5: Taco Bell, Acura, and Wet Seal Snapchat Examples Created by: Marketo and Column Five. Sorces: Mashable, Forbes, Business Insider, Inc, and All Things SDTaco Bell, Acura, and Wet Seal used different approaches but all gained large amounts of followers from their campaigns. Now that they have more followers, more people will see their content. These 10 second snaps instantly brought them attention. The simplicity makes users more willing to cooperate and want to know the latest about their favorite way. Also, because the creative advertising is so new, many are intrigued and want to be a part of the excitement. CONCLUSIONS AND RECCOMMEDATIONSConclusionsAlthough Snapchat is relatively new, the photo-sharing app has a huge millennial usage rate, is continuing to grow, and is an effective way to market. Snapchats large following is excited about the app and is eager to see it evolve. The app is surpassing its competitors and growing exponentially. Companies are finding creative and effective ways to advertise through the app, especially to millennials. RecommendationsCompanies should use Snapchat to target millennials and gain followers. Using the digital age and social media as an advantage will result in positive results. Starting with a small following and using promotions or creative content will produce a larger following and more publicity.

AppendixWork Citedhttp://www.businessinsider.com/snapchat-discover-ad-rates-2015-3#ixzz3eU21PQG6https://www.snapchat.com/adshttp://expandedramblings.com/index.php/snapchat-statistics/1/,http://blog.marketo.com/2014/02/infographic-leveraging-snapchat-for-brands.htmlhttp://www.socialmediaexaminer.com/snapchat-for-business/http://www.adweek.com/socialtimes/social-media-statistics-2014/499230http://adage.com/article/cmo-strategy/toyota-local-geo-targeted-snapchat-ads/299251/http://time.com/3931858/snapchats-ad-agency/http://www.smartinsights.com/digital-marketing-platforms/popularity-snapchat-infographic/http://www.visualistan.com/2014/09/social-media-cheat-sheet-for-brands.htmlhttp://www.hotpotatosocialmedia.com/snapchat-marketing-best-practices/http://socialmediastrategiessummit.com/blog/benefits-traditional-marketing-social-media/

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