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Snap Technology

Snapchat wants to show advertisers its in-store sales impact with LiveRamp measurement deal


By Rebecca Stewart, Trends Editor

June 13, 2018 | 5 min read

Snapchat is looking to align the measurement it offers advertisers with that given by the likes of Facebook, announcing two new plays that will help brands better scrutinise the value of their media buys in the app.

snapchat filter that says it's lit

Brands who were involved in the beta trials, which included Oreo and Cadbury, noted on average a 4% uptick in sales / Snapchat

First up, the messaging service has deepened its relationship with people-based marketing firm LiveRamp, launching a new solution it's calling 'offline sales impact' (OSI) that it said will let brands measure the impact of their campaign on offline sales in a 'privacy-friendly' way (read: GDPR-compliant).

Brands involved in the beta trials, including Oreo and Cadbury, noted on average a 4% uptick in sales.

While it was scant on details, Snap said it is bringing this product to market with one of the UK's "largest supermarkets" which will see it match its own user data with the grocer in question's loyalty program to measure the sales uplift achieved following a Snapchat campaign. This could include any of its many ad formats, like AR lenses or vertical video slots.

Sainsbury's is the one brand among the 'big four' UK supermarkets to have funneled ad investment into Snap from the start. Others, like Morrisons, use it more natively.

'Another dimension' of measurement

Snapchat first started its relationship with LiveRamp in 2017 through a deal that enabled brands to build segments of individuals using online and offline data, including purchases, conversions, prior engagement, demographics, scoring, and a host of other information.

Snap's latest announcement follows on from a similar online to in-store initiative with Oracle.

Andy Pang, Snapchat's head of international measurement said that Offline Sales Impact would add "another dimension" to way Snap helps brand evaluate the app's real-world impact.

“We’ve always known Snapchat has a differentiated audience, and with OSI we can clearly demonstrate how Snapchat introduces new customers, and value to a brand," he added.

Since its IPO last year, Snapchat has failed to impress investors and analysts with sluggish user growth and a below-predicted revenue bump. In Q1 of this year it pulled in $230m against Wall Street estimates of $244.5m.

When the app first rolled out its ad offering industry insiders bemoaned a lack of measurement, but the business has worked hard to invest in ad tech solutions that will both please advertisers and assuage stakeholders over the past twelve months: now offering verification from the likes of Moat, Nielsen and Integral Ad Science.

If, like Facebook, it can edge closer to giving brands a single customer view by connecting what happens in its walls to in-store then it will make it easier for it to pitch its worth to brands.

By the end of June, most of Snap's ad products will be self-serve; another signal it's moving closer to working in the same way as Google and Facebook when it comes to programmatic.

Marketing mix modelling

In addition to today's announcement, Snapchat has also launched its marketing mix modelling (MMM) partner programme, which includes tie-ups with Neustar Marketshare, Analytics Partners, Kantar and Nielsen, to Europe. In coming this side of the ponds its also adding new collaborations with the likes of D2D (Dentsu Aegis), Ninah (Publicis) and independent MMM providers Ebiquity, Ekimetrics and Nepa.

Skewed towards helping marketers justify their spend on Snapchat, the MMM scheme will see advertisers being given access to third-party data to better understand Snap's impact on actions like sales and sign-ups.

This kind of measurement will allow the business to be more competitive with Facebook, Google and Twitter, all of which have similar MMM offerings.

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