Is the value of a Snapchat Ad really worth $750,000 per day?

This month Snapchat announced plans that they’re going to start charging brands the astronomical figure of $750,000 or about £500,000 for ads on the platform per day. For this amount of money brands get to show an ad to the social networks youthful and teenage audience…which will promptly disappear in 24 hours. So let’s break this down further. That means a brand would be paying $31,250 an hour, or $520 a minute or $9 a second. For me the figure that is most telling is how much brands are paying a second, as Snapchat ads, stories and messages only last up to 1-30 seconds. So if you’re posting an ad that lasts 30 seconds, you’ve just coughed up $270! Of course there’s no guarantee that the recipient will see out the whole ad, as they might just delete it, thus money wasted!

The other drawback of Snapchat’s ads, if the cost hasn’t already made you faint, is the fact you can’t target them to specific users. So it literally is a mass Snapchat message with no personalisation or anything. I mean for something generic like food this might be ok, but for something specific such as womens clothing, I personally don’t really want to see that (my days of wearing womens clothing are behind me). So the fact you aren’t able to target is a big issue. But I guess the cost is the reason for this. If Snapchat decides to release a targeted ads system, the cost I presume might be lower as you are hitting fewer users. Although it might actually be higher as you’re targeting more specifically!

The question to ask is why and how can Snapchat ask for so much from brands. One of the reasons is that it’s one of the fastest growing apps and social networks around with over 30 million users and this isn’t showing any signs of slowing down as more people sign up and brands look to exploit it. Also there’s a high value to get ads to people’s smartphones and through Snapchat’s ads brands can achieve just this. That’s because when you receive the snap, this is the only ad you see, as it’s not like a website page with loads of banner ads, it’s one ad that takes up your screen. Some might compare this to Instagram’s ad strategy too.

Is there actually any benefit in paying this amount of money? I mean is there actually any value in it, will you get a decent return or any if that. It’s quite hard to determine the ROI of these ads, and a lot will depend on the call to action. If it’s ‘opens’ then this isn’t really a great metric although clicks or website visits/sign ups might be a better determinant of success. Either way it appears Snapchat hasn’t really thought about this yet, nor really has any brand.

So only time will tell whether brands pay the handsome sum of $750,000 for an ad, or will Snapchat rethink this cost strategy. Thanks for reading and please do comment on your views of Snapchat’s ad cost. In the meantime, please do follow my blog and me on Twitter @DigitalStuart for more digital marketing and social media news.

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How many Friends do we REALLY have on Facebook

I was looking through my Facebook timeline not too long ago (and to be honest I last looked at it a few minutes ago), and I was wondering how many of these people do I actually talk to, or even see anymore. I think I got to something like the 50 mark, maybe a bit more, don’t really want to be seen as someone with no friends. But I know of people who have about 1,000 friends on Facebook and you kind of think how can someones life accommodate that many…and then you release that they probably only see and speak to about 10% of them.

I recently went through all my friends and did a nice cull, which was both satisfying and freed up lots of space on my newsfeed which has been promptly replaced with brands! I did this not to be cruel or horrible, I did it because to be honest if I carried about them I’d probably see or talk to them, but as I don’t why should I still have them on my feed? There are of course people who like to see what their old pals are up to, and I do too, but there’s a limit to the caring. I was quite shocked to look through my friends and think ‘I haven’t even spoken to that person’, but just added them because we had like 900 mutual friends!

In a world of information overload where we have to digest so much in our newsfeeds, we only really have time for family members and close friends that we want to know what they’re up to. Also whenever we meet people at a party or when we’re out and about, gone are the days when we ask for a phone number, it’s more ‘add me Facebook’! But when do you add someone on Facebook? How many times do you have to have seen the person before you do it? Should you add work colleagues? And of course we’ve all done the Facebook stalk of someone. It’s interesting to know what everyones Facebook etiquette is, as we’re all different. One thing I don’t do though is have my parents on Facebook, for me that’s a social media no no! I mean it’s not because I’m doing anything embarrassing (not usually) or bad, but I find it strange to think they’d be stalking me all the time. Plus I speak to them regularly so they know any important ins and outs!

So it’s safe to say that we all have lots of friends, but we don’t necessary see or speak to them all the time. It’ll be interesting to see whether our Facebook friends grow as we meet more people or decline as we cut out people from our social media lives. Thanks for reading and please feel free to comment on your Facebook friend experiences. For more digital news follow this blog or catch me on Twitter @DigitalStuart.

My Marketing and Social Media Predictions for 2015!!!

First of all let me take this moment to wish you all a HAPPY NEW YEAR!!!!! In this blog I’m going to highlight some of my predictions for 2015 in the social media and marketing space.

Instagram to Continue its Growth 

I recently wrote how Instagram now has more active users than Twitter and in 2015 I expect the photo sharing app to continue its growth in users. It wouldn’t surprise me if Instagram introduced many new features in the coming months of 2015 in addition to the recent ones. Also Instagram for business will increase as brands look to take advantage of Instagrams growing audience.

Social Advertising Spend

Many brands are now allocating funds for social media usage whether that’s for Promoted Posts on Twitter, Facebook ads, or investing in creative content, I expect more money to be spent on this growing trend. Brands are now spending more money on digital marketing activities such as social media, search or mobile, meaning greater focus is on these areas rather than traditional marketing.

The Rise of Snapchat

2015 should see the mobile app Snapchat increase it’s presence on the social media space. At the moment Snapchat only allows you to send photos but recently they announced plans to introduce a payment system called Snapcash, so more new features could be added to the app. I expect Snapchat to add greater enhanced features such as profile pages, more filters on Snaps and possibly a greater messaging system. Of course these are features that would enhance Snapchat’s service.

Mobile to Grow Even More

Every year we say that mobile will grow in the coming year, and you kind of think how much more can it grow?! But 2015 will once again see brands and consumers presence on mobile increase. This rise will see brands spend more money on mobile whether that’s creating or developing a mobile optimised site, introducing mobile payments or releasing an app, this sector is rising. Additionally, mobile advertising will grow as brands try to secure the screen on smartphones, as apps such as Twitter and Facebook enhance their advertising platforms. Also more people now have smartphones so brands are seeing this opportunity to advertise to a whole new audience as well as offer their products and services online.

Wearable Technology All The Rage

Wearable technology is going to rise even more as the year progresses through releases such as Smartwatches. This could see more watches that now offer users the chance to send texts, access email and other apps…oh…and maybe it’ll tell the time too.

Big Data will be…Big

Gone are the days of looking at data from your customers and ignoring it, but now these figures are becoming even more vital to gain great insights into a brands audience. 2015 will see social media and marketing managers analyse more data than ever to really find out who their audience is and what they like. This will see an increase in brands using analytics tools to see for instance what interests their social media followers are in to, where they are from, who they follow, whether they’re male or female and a whole multitude of other stats. All these demographic, geographic and psychographic insights will enable brands to create content that is more tailored to the audience, thus increasing engagement.

Content is the King of 2015

The marketing term that has been banished round for some time is ‘content’, and how ‘it is king’, and this will continue to be the case in 2015. There’s never been a more valuable time for brands to create and post content whether that’s a photo, a video or a status update which is interesting, shareable, creates awareness, is fun and of high quality. That’s why brands will invest money in developing this content whether that’s in house designers or outsourcing it to agencies.

Real Time Marketing (RTM) is the REAL Deal

More brands are now taking the opportunity to exploit internet trends and popular news stories with creative and humorous content. I’ll take you back to the summer when Apples ‘Bendgate’ was in full flight, and brands quickly jumped on the bandwagon. This is a classic example of a news story creating a massive influx of hilarity and fun from brands. I’ve previously written about how Real Time Marketing is the way to go as it illustrates to a brands audience that they’re current and at the same time keeping an eager eye on what’s going on in the news. I fully see more brands allocating time and money to creating great RTM campaigns in the year to come.

Of course, RTM isn’t always the best strategy to take as if you, and your competitors are all doing it, it doesn’t make it unique anymore. Thus it’s very important to have the first mover advantage of getting there before anymore else and getting something out quickly. However, always be aware that misfortune could happen to anyone…so it was Apple one day, it could easily be you another day…

Storytelling

When we say storytelling we aren’t about to tell you a fariytale…or maybe we are depending on the brand, but this is how brands can differentiate themselves by telling us a story of their brand or campaign. Take for instance John Lewis’ successful Monty the Penguin Christmas advert. This told us the romantic story of Monty and Mabel the penguins and their search for love and to spend Christmas together. These stories add emotion to us as viewers and in some cases make us relate with the narrative…maybe the love side, not being a penguin! Having a great story behind how your brand started or your campaign attracts the audience and creates fantastic social media content!

Personalisation

Brands more than ever are not trying to just post content that is targeted at the masses, but now is aimed at niche and specific people who can then in turn relate to it. The upcoming year will see brands trying to be much more personal with their activities. Obviously this won’t mean posting 100,000 different Twitter status’ for 100,000 followers, but a greater number of posts will target a brands audience. This comes hand in hand with big data and analysing a brands audience, as when they can see who their audience is, personalisation becomes easier.

There’s a lot of Talk about Chat Apps

One thing I’ve noticed over the past year is how much chat apps such as WhatsApp and We Chat have grown, and 2015 won’t see this stop. However, brands haven’t really exploited them yet, maybe because of their nature, but I’d be excited to see how brands in 2015 will use these as the apps audience base grows.

A New Social Network? Is it needed?

There’s always one social network that suddenly grows and takes the social media landscape by storm. 2011 was Google+ (more a drizzle), 2012 it was Pinterest, 2013 was Instagram and 2014 was Snapchat, so who will it be in 2015? There might be a growth in current networks but could an entirely new one come to our attention. But is another social network needed? I mean I work in social media and am amerced in it everyday but even I struggle to follow what’s going on, on my Facebook, Twitter, Instagram, Snapchat, LinkedIn and all the others, so how someone that doesn’t work in social media copes I don’t know! I don’t think my life at the moment needs another social network. I’d maybe prefer it to replace a current one. However, if the new network was unique and did something completely different I might find time for it!

So there’s some of my 2015 predictions! I’ll probably be writing a blog post in December to see if any of these happened…or if my mystic meg abilities are totally wrong! if you have any predictions for 2015 please feel free to comment. For more digital marketing news follow this blog, and me on Twitter @DigitalStuart .