Our Eyes Are On Snap

by Common Thread Collective Collaborator

Feb. 11 2019

Snapchat is no longer just an app for teenagers to share their dog-filter selfies with their friends. During the last quarter of 2018, Snapchat not only surpassed $1 billion in revenue but also their mobile video advertising reached over 70% the 13-34 year old US population on a monthly basis.

With over 186 million active users each day, e-commerce businesses are starting to propel their ad spend on Snapchat to reach this lucrative, younger demographic of shoppers. Savvy e-commerce advertisers are taking advantage of Snapchat’s conversion campaigns to push prospects down the sales funnel as well as collection ads to allow users browse their product catalog.  

Snapchat Collection Ad:


Check out the latest ad products from Snapchat that have helped them propel to one of the top social media advertising platforms: 

  • Commercials, the 6-second non-skippable video ad, continue to perform well. The majority of commercials were purchased via its Premium Content Targeting tool that is part of Snap’s self-serve ad platform for large brands and agencies.
  • Collection Ads, which enable a business to showcase four products in a single Snap, drove over twice the return on ad spend versus comparable formats in Q4 2018.
  • Product Catalogs, which offer a simple, scalable way for eCommerce businesses to use their websites to create Snap Ads.
  • The launch of the Snap Pixel, which has continued to see growth with over 600 million purchase events in Q4 2018 up from 230 million in Q3 2018.
  • Improvements to machine learning models for app installs and lower-funnel bidding events, which contributed to higher always-on revenue, showing that Snapchat’s commitment to performance advertisers is paying off.
  • Advertisers can now bid against their key performance indicators. Snapchat is seeing strong results in direct-response business advertising.

In 2018, it was reported that 1,400 advertisers were using Snapchat ads for one-off campaigns during Q4 with the top five spenders being Comcast, Mars, AT&T, Adidas and P&G. Retailers only accounted for 10% of the ad spend on the platform in 2018.



“We are building a mobile-first, engagement-driven, sustainable advertising business in a privacy-safe way for our users that drives real business outcomes,” says Jeremi Gorman, chief business officer at Snap. Gorman also reported that the company made a “deliberate pivot to work with direct-response advertisers last year as we shifted to self-service.”


It’s easy to see why Snapchat has quickly become a very attractive platform for advertisers as a cost-efficient outlet to reach millions of millennial eyeballs. Facebook has paved the way for platforms like Snapchat by proving the value of advertising driven social media, and we are excited as an agency to be one of the early adopters of Snapchat advertising. We believe that Snapchat will continue throughout 2019 to provide immense opportunities in terms of profitability and scale for our e-commerce clients.


Ready to start advertising on Snapchat? Contact us today!