As Snapchat continues to grow in popularity as one of the biggest social networking sites in the US, it’s value to artists and festivals has become clear. The first self-serve advertising product Snapchat released, the On-Demand Geofilter, allows marketers to buy a custom Geofilter to run in a specified location, over a given period of time at a flat rate. The cost is determined based on the expected amount of usage in the location over the purchased time period. A popular venue in a major city will have a higher cost than a similar space in a rural area. Users are able to create custom geofences within the Snapchat interface, up to 5,000,000 square feet and select a time frame anywhere from one hour to a month.
When Gupta Media started running Geofilters, it was important to think about the available metrics and how the effectiveness of the campaigns would be measured. In almost all other ads, there are measurements of clicks, CPC’s, and depending on campaign type, conversions. For Snapchat’s On-Demand Geofilters, there are no clicks, and no way to directly measure conversions. The only metrics supplied are ‘Uses’ and ‘Views.’
In order to try to compare the cost efficiency of Snapchat Geofilters against other media buys, Gupta Media created a metric for Cost Per 1,000 views within Snapchat, which is similar to the CPM of a traditional buy. Additionally, other unique metrics could be used to compare Geofilter performance against one another. These include “Cost Per Use” and “Views Per Use.” Here is the data from across 89 geofilters run by Gupta Media.
When looking at this data, the average Cost Per 1,000 views (or Snapchat equivalent of CPM) – is $0.44. This is a very cost effective CPM. However, because of the way that Snapchat is set up, results can vary greatly. For instance, if an artist with a huge presence on Snapchat (for instance, DJ Khaled) uses the filter, the amount of views will be substantially larger than a filter that is only used by Snapchat members with average-sized audiences. One use by a Snapchat star can greatly skew the overall numbers of the Cost Per 1,000 views.
In order to look at these numbers without this skew, Gupta Media created a histogram with different buckets of eCPMs to see the frequency of times that the Geofilters landed in each bucket.
Across these 89 filters, the most frequent outcome was that the eCPM fell between the range of $0.50 – $1.00. In 54 out of 89 filters, the eCPM was under $4 – all of which compare favorably to most other ad buys. However, since these filters are not bought on a CPM basis, there is a risk that if users do not engage with the Snapchat, the eCPM will be very high – 7 instances where the eCPM was above $25.
Snapchat On-Demand Geofilters can be a great way to capitalize on a specific appearance or event in order to raise awareness. While they are limited in their ability to drive direct response, they can be incredibly cost-effective in their ability to drive views. Gupta Media is looking forward to future innovations from Snapchat and utilizing the Geofilters in new and creative ways.