Snapchat ads give a huge boost to sales, but many brands lag behind

By

Cassidy Mantor

Published
Aug 8, 2016

A recent study revealed 65% of retailers are missing an opportunity to use Snapchat lens and geofilter ads to connect with their millennial consumers.

Placed, a location-based data company who conducted the survey, found that for brands going after the Gen Z millennial, which is to say most brands, they are missing out on a major opportunity.

"Most retailers are aware that shoppers are snapping in store, though it's probably not top of mind for most," said Chris Gilbert, senior social strategist at Kettle.

The Placed study showed that of the 150 million users on Snapchat, most of the brands targeting those consumers had not even created Snapchat accounts.

Some of the top losing brands of the Placed study were Maurice's, Rue21, Aeropostale, and Bath & Body Works. Their consumers were most active on Snapchat, however these brands do not even have a presence on the platform.

Brands that are winning by buying Snapchat ads include Walmart, Macy's, Michael Kors, Foot Locker and Louis Vuitton. For example, Michael Kors' recent #NationalSunglassesDay snap hit 100 million views and increased the intent to purchase 2.1%.

Michael Kors SVP of Global Communications and Marketing, Lisa Pomerantz, said of the snap, "it added a layer of relevance to a millennial and Gen Z-heavy audience."

However, the use of ads on Snapchat has to be carefully curated so that consumers don't feel like its too corporate.

Success stories from using geofilter ads include a 48% increase in traffic at Men's Warehouse during prom season, and customers who didn't even know subscription service Birchbox had a brick and mortar store they could walk into.