Marketers see little return from advertising on Snapchat

Advertising Age and RBC Capital Markets have released the results of a survey of 1600 marketers intended to assess the state of digital advertising.

Results:

• Snapchat received low marks compared to Google and Facebook.
• ROI scores from marketers:

1. Google 6.98
2. Facebook 6.72
3. Snapchat 3.43
4. AOL 2.88

• Reasons marketers gave for low Snapchat scores:
  • Increased competition from Instagram
  • Difficulty in measuring KPIs
  • Poor targeting
  • Decrease in engagement and open rates
• Facebook's Messenger Day has a user base of 1B+, Instagram 300M, Snapchat 160M.
• Platforms on which marketers said they're interested in advertising:
  • Instagram 64%
  • Amazon 43%
  • Spotify 40%
  • Snapchat 37%
• Platforms on which the 1600 marketers said they plan to increase ad spend:
  • Facebook 461
  • Google 450
  • Snapchat 119

Snapchat reported losses of $515M in 2016, up from $373M in 2015.

- David