Webinar: The Ultimate Guide to Snapchat Advertising

WEBINAR - FEBRUARY 22, 2017

THE ULTIMATE GUIDE TO SNAPCHAT ADVERTISING

KATANA WEBINAR SPEAKERS

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SABRINA BLAUSTEINANDREAS ROELLKATANA | EXECUTIVE CHAIRMAN - PRESENTER KATANA | CONTENT MARKETING SPECIALIST - PRESENTER

Katana provides next genera<on digital media solu<ons via innova<ons in data modeling and adver<sing technologies.

We combine advanced audience data models with highly sophisRcated technology infrastructure to run smarter paid media campaigns.

Unlock media potenBal with smart campaigns

Our catalog of campaign packages provide marketers and agencies the ability to reach audiences in unprecedented ways.

Smarter digital adverBsing, smarter results

3COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 3

Why Katana?

Quick facts

• Founded in 2012 (privately funded) • 18 Proprietary Ad Technologies • 68 Data Partnerships

DATA POINTS PROCESSED MONTHLY

1.34 BILLIONUNIQUE COOKIES PROCESSED MONTHLY

60 MILLION

AND OVER 2,000 CAMPAIGNS LAUNCHED IN Q4 2016

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Recognition Where We Are

HQ: San Diego, California

Kiev, UkraineWashington, DC

COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 4

Who is Katana?

CAMPAIGN INTELLIGENCE PLATFORM

CLIENT DATA - CRM - POS - WEB - ADVERTISING - SOCIAL

EXCLUSIVE KATANA DATA Largest real-Ome audience data for:

- AcOve Sports Events - Higher EducaOon - AutomoOve ownership - Voter registraOon - Concert goers - Home ownership - Clothing - CosmeOcs & Jewelry - TaYoos - Many others

DATA PARTNERSHIPS

Cu]ng edge campaign soluRons not found anywhere else.

Audience DMP Performance Connectors MulB-DSP Setup

So what’s the outcome?

and 54 more


Katana’s Technology Framework

Campaigns Katana has built an ever growing list of campaign execu<ons that fit easily into a marketer’s or agency’s media plans. We customize each package to meet your needs or objec<ves.

Services Looking to have us provide you with custom end-to-end media plans and solu8ons?

Katana can be your digital media partner of choice. Our strategic media team will help in strategy, audience data iden<fica<on, tracking setup, crea<ve execu<ons and buying op<miza<on for all digital channels on an ongoing basis.

OUR EXECUTIONS • Auto-Trigger • High Intent Audience • CRM Cycler • Cross-device • Search Keyword • Image NaOve • SemanOc Context • ProgrammaOc TV • PinPoint

• Household • Company • Video NaOve • Geo PaYern • Audience Stream • Offline Visits • Database Match • True Video • Facebook Performance • TV Extension

Our SoluOons


WHAT IS SNAPCHAT? Snapchat is a messaging and photo/video sharing mobile application that launched in 2011. In just six years, the app has evolved from a popular social media network to a 158 million-strong (daily active users) app that has develop its own advertising API in preparation for its imminent IPO.

On average, people spend 25-30 minutes per day and open the app 18 times over the course of the day.

SNAPCHAT CREATED April 2011 - December 2012

USERBASE ACQUISITION December 2012 - November 2014

20 MILLION IMAGES SHARED A DAY

October 2012

VIDEO SHARING LAUNCHED

December 2012

SNAP INC. FILES FOR IPO November 2016

PARTNERSHIP WITH ORACLE DATA CLOUD

December 19, 2016

EvoluOon of Snapchat From Launch Leading to IPO

LAUNCHES ‘LIVE’ August 2014

ANNOUNCES ADS FROM BRANDS

October 2014

LAUNCHES ‘DISCOVER’ January 2015

LAUNCHES SNAPCHAT PARTNERS API

June 2016


US Snapchat Ad Revenues, by source, 2015-2018 Millions and % of Total

2015 2016 2017E 2018E

Snap Ads - Discover% of total

Source: www.emarketer.com, Sept 2016

NOTE: paid adverRsing only; doesn’t include budget allocated towards developing or maintaining a Snapchat presence

$58.1100.0%

$58.1

$149.843.0%$96.327.7%

$73.021.0%

$29.28.4%

$348.4

$243.230.2%

$304.037.8%

$164.320.4%

$93.111.6%

$804.5

$401.030.4%

$481.236.4%

$273.820.7%

$164.312.4%

$1,320.1

Snap Ads - Live Stories% of total

Sponsored Lenses% of total

Sponsored Geofilters% of total

TOTAL

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Snapchat Revenue and its IPO

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Snapchat filed for an IPO (iniBal public offering) in November 2016. Since then, Snap Inc. has taken the following measures in preparaBon for the highest valuaBon:

Developed an API for automated buying and selling of ad inventory

Improved API targeBng capabiliBes, such as developing a partnership with Oracle Data Cloud to enable targe<ng similar to Facebook or Google

Secured upfront spending commitments from ad agencies of at least $200 million on Snapchat ads

As Snap Inc. (Snapchat’s parent company) prepares for its iniBal public offering, Evan Spiegal, the company’s 26-year-old founder, has oriented the messaging app to level in the same class as Apple and Facebook by developing its own API.

An API is an applica<on programming interface, which allows third party data partners to integrate with Snapchat’s plaborm and deliver ads on behalf of brands and agencies.

This is Snapchat’s entrance into programma<c adver<sing, or the automa<on of buying and selling ad inventory. Snapchat media buying takes performance of crea<ve, targe<ng and bidding in determining which ads to deliver.

The benefit of an API? Beger targeBng.

What is Snapchat’s API?


The beta of Snapchat’s API was unveiled in June 2016, and was formally launched in October 2016.

39 Ads API Partners (VaynerMedia is a partner in two different categories)

The social giant enlisted a slew of adver<sing and crea<ve partners in order to automate sales and increase transparency around pricing and ad features. The four categories of API partners are:

1. Audience Match API Partner 2. Ads API Partner 3. Crea<ve API Partner 4. Crea<ve Partner (newest bucket added)

What is Snapchat’s API?


Snapchat API TargeOng


Snapchat has announced the following targeBng opBons accessible through its API:

Email Matching: Brands can use their own customer database lists to find people when they visit Snapchat

Interest-Based Targe<ng (Snapchat Lifestyle Categories and Lookalikes): Construct ‘lookalike’ models to find similar consumers for ad campaigns

Custom solu<ons such as ver<cal-specific work flows, weather targe<ng, daypar<ng and syncing with TV

Targe<ng by age, gender, loca<on, device/opera<ng system and carrier

Snap Audience Match: Proprietary technology that brands can use in order to target users by anonymously integra<ng first party data and mobile device IDs to be overlaid with Snapchat’s user data

Sequen<al Messaging: Users are retargeted and served with new ads aker they’ve engaged with an earlier one

*Snapchat has hinted that this will be available.*

AdverBsers can assess the performance of their campaigns through a web-based dashboard. The dashboard reveals important key performance indicators (KPIs) such as:

Number of views Campaign Spend How long videos are watched Other Real-<me repor<ng (such as swipes or impressions)

Why is this important? Technology partners that adver<se on other social plaborms (Facebook, Instagram, Pinterest, Twiner and LinkedIn) can compare how Snapchat performs in the mix, and adjust media plans accordingly.

Trade desks and media agencies want more hands-on experience and op<mize campaigns on their own, expressing concern about analy<cs and KPI repor<ng. With Snapchat’s API, adver<sers have more access and control over analysis and repor<ng.


Snapchat API Dashboard and Metrics

Source: Courtesy Brand Networks

An overview of the Snapchat API dashboard.


Benefits of Snapchat’s API

The Snapchat adverBsing plaiorm has adopted programmaBc tendencies, warranBng more scalable opportuniBes for buyers to place ads in between their target audience’s stories.

A/B test mul<ple crea<ves simultaneously and op<mize campaigns in real <me, a similar concept that is commonplace on digital plaborms like Facebook and YouTube.

Leverage ‘Snap Audience Match’ — a proprietary technology that brands can use in order to target users by anonymously integra<ng first party data and mobile device IDs to be overlaid with Snapchat’s user data.

Brands can tap into Oracle Data Cloud’s aggregated data on 110 million households, $2 trillion in consumer spending and 1,500 brands, Snapchat will be able to determine if offline ac<vity or purchases are influenced by the ads on its plaborm, which will translate into more adver<sing dollars.

Snapchat announced a deal with Oracle Data Cloud in January 2017

Since the millennial demographic is varied, an API improves targe<ng. Instead of targe<ng millennials as a demographic, you can target individuals who are actually engaging. Over <me, we can interpret data points and strategize how brands might retarget individuals who engage with ads.

Snapchat is currently the only plaborm leveraging Oracle’s offline data informa<on, although other tech giants, such as Pinterest and YouTube, have established related partnerships. Facebook u<lizes both online and offline data to improve ad targe<ng, even sanc<oning users to personalize which ads they are served.

Snapchat API TargeOng

SNAPCHAT PRICING MODELS AND BUYING OPTIONS There are currently three different ad units, but there are more than three pricing modelings and buying options, adding additional layers of complexity to the media buying process.

Ad Unit #1: Sponsored Lenses


Lenses are interac<ve filters that all Snapchat users can use to enhance their photo or video. Adver<sers work closely with Snapchat to ensure the crea<ve works interac<vely across opera<ng systems.

Snapchat lenses were first introduced in the laner part of 2015, and the number of Snaps featuring Lenses have augmented from 10 million to 30 million. Sponsored Lenses use triggered anima<on to ac<vate the user experiences, and users will interact with this ad type for about 20 seconds. They are ac<ve for 24 hours.

Sponsored Lenses can be bought as a Na<onal Campaign and have versa<le in-campaign features, including:

Flexibility to change lens colors and textures or swap 2D sta<c images during the campaign Ability to u<lize a second trigger in succession of the original trigger (ex: raising eyebrows or tapping on the screen) Swap an addi<onal lens during the course of the campaign Leverage two different lens types to accommodate two users in the frame Swap in a second lens during the campaign, for example, if you wanted to introduced another character Create two different lenses - one for the front and one for the rear-facing camera

*These features may be subject to addi<onal cost.*

Source: Snapchat

Source: Snapchat

Ad Unit #1: Sponsored Lenses Cost


Sponsored lenses are best used for na<onally-known brands to improve their image or launch new products. Since Sponsored Lenses capture a na<onal audience, the ad’s tone must be in tune with the actual brand’s persona.

Notable brands that have uOlized sponsored lenses, include Gatorade, Taco Bell, and The Peanuts Movie.

The actual cost of Snapchat ad units are ambiguous, although Sponsored Lenses reportedly cost:

$450,000 each per day Sunday through Thursday $500,000 for Fridays and Saturdays And more than $700,000 for holidays/special events (like the Super Bowl)

Lenses are the most challenging ad unit to execute because adver<sers/agencies have to work in unison with Snapchat’s developers to create and code the lens — a process that can take months!

Source: Snapchat featuring Gatorade

Ad Unit #2: Sponsored Geofilters


NaBonal Campaign: Reach Snapchaners at scale to generate awareness for a product or event.

• Works best when aligned with events, holidays and pop culture trends

• Par<<on the campaign into mul<ple groups by: age, place, or <me periods (at an addi<onal cost)

Shared Spaces Campaign: Offer Snapchaners in high-traffic social spaces a fun way to send your brand message to friends.

• Snapchaners in a space of your choice (airports, colleges, high schools, golf courses, etc.) can view and send your Sponsored Geofilter

Chain Campaign: Offer Snapchaners at your retail loca<ons a fun way to send your brand message to friends.

• For geographically diverse campaigns, crea<ve rota<on is included and encouraged

• Geoloca<on data must be supplied ten days prior to campaign launch

Event Campaign: Associate your brand with a major event, and offer Snapchaners a way to send your message.

• Snapchaners at an event you choose can view and send your Sponsored Geofilters to friends or post to their Story (excluding events with Live Stories)

• For longer events (like fes<vals), crea<ve rota<on is included and encouraged

A geofilter is a sponsored photo or video filter that is ac<ve on every Snapchat user’s account, in a defined geographic loca<on and <me. The brand or agency is responsible for providing crea<ve (web op<mized PNG file) that must follow all of Snapchat’s community and brand guidelines.

Sponsored Geofilters reach 40% to 60% of daily Snapchagers in your specified region, and this ad type was historically LOCAL. You can buy Sponsored Geofilters as:

Source: Snapchat

Ad Unit #2: Sponsored Geofilters Cost


Source: Snapchat

Na<onwide (versus local) Sponsored Geofilters are a new offering from Snapchat. The pricing modeling for Sponsored Geofilters is rela<vely ambiguous, but we es<mate the cost to be around a filh of the cost of Sponsored Lenses.

Meanwhile, Sponsored Local Geofilters are es<mated to cost $5+ (higher for special events).

A Sponsored Geofilter can be used to drive local awareness. Historically, Sponsored Geofilters have been used for local brand recogniBon, company announcements or as a recruitment tool.

Ad Unit #3: Snap Ads


Snap Ads offer up to 10 seconds of verBcal full-screen video adverBsements, with an op<on to ad interac<ve anachments easily assessable by swiping up. These type of ads have up to 2X higher visual agenBon in comparison to other social plaiorms, and two thirds of Snap Ads play with audio on for added impressionable moments.

In January 2017, Snapchat launched their deep-linking ad feature around the <me that Instagram launched ads within Instagram Stories.

Snap Ads can be bought as: Snap Ads Snap Ads + Anachments Snap Ads App Install Snap Ads Web View Snap Ads Long-Form Video Snap Ads Ar<cle

Source: Snapchat

Ad Unit #3: Snap Ads + AYachments and Cost


Snap Ads with Agachments receive 5X the ‘swipe up’ rate versus the average CTR of other social plaborms.

Snap Ads are esBmated to cost $10,000 per month.

Snap Ads + Agachments Ad Formats: Example: ’SWIPE UP FOR MORE’

The biggest hurdle Snapchat will have to overcome: Resolving issues around integra<ng with key tracking partners, like DoubleClick or Atlas, as well as expanding targe<ng to include the other major giants, such as LiveRamp.

Future of Snapchat


Snapchat’s CEO, Evan Spiegel, ini<ally swore off hyper-targe<ng with third party data. The company’s API and adop<on of third party data targe<ng conveys significant maturity.

Snapchat is moving from a revenue-share model for premium publishers to an upfront license-fee model (where Snapchat retains 100% of ad revenue on it’s Discover plaborm), embracing a syndica<on model (how TV media inventory is purchased).

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eMarketer projected that Snapchat will gross $1 billion in adverBsing revenue by the end of 2017, making up nearly 2% of all social network revenue dollars in the U.S.

Snapchat Ad Revenues Worldwide 2015-2018 Millions and % Change

$1,760.1

$59.2

$366.7

$935.5

Source: eMarketer, Sept 2016

2015 2016E 2017E 2018E

In Conclusion


Snapchat’s API opens the barriers to adver<sers who wouldn’t normally adver<se on the plaborm:

Snapchat ads are about reducing ad fricBon, which is why they don’t use pre-roll and why its ads ARE skippable.

Snapchat ads take advantage of sound,

Snapchat ads are acBonable since they drive brand awareness. Full-screen Snap Ads and Sponsored Lenses (if you have the budget) have the most poten<al for influencing conversions.

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Webinar: The Ultimate Guide to Snapchat Advertising

Marketing

Transcript of Webinar: The Ultimate Guide to Snapchat Advertising