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Snapchat Technology

Snapchat chases retailers with dynamic ad offering


By Rebecca Stewart, Trends Editor

October 17, 2019 | 3 min read

Snapchat is rolling out a new dynamic ad format that will let brands automatically create ads in real-time based on their own product catalogue.

Snapchat chases retailers with dynamic ad offering

Brands that have already tested the product include online fashion retailer Princess Polly Clothing

The feature works by pulling in data from extensive product catalogues which could contain up to hundreds of thousands of products. These are then synced with Snap’s ad system and served up to users based on their interests.

As product availability or prices change, so will the ads.

The move could open up further revenue streams for the app, broadening its appeal among retailers, direct-to-consumer (DTC) brands and e-commerce players.

Snap claims the product will improve ROI for the advertisers it works with, letting them target users with more relevant ads. “Visually appealing” mobile templates will be provided to advertisers by Snap, which will cut down the amount of time brands spend manually creating ads for the platform.

Currently in open beta testing, the feature is being trailed in the US with a global rollout expected in the coming months.

Brands that have already tested the product include online fashion retailer Princess Polly Clothing and minimalist wallet company The Ridge Wallet. The former claims that in testing, dynamic ads drove a 66% increase in CPP and a 171% boost to ROI.

The update from Snap is just the latest move to make the millennial app more appealing to advertisers and their agencies.

Since launching its ad offering in 2014, when ads had a fixed price, no optimisation and no measurement, the platform has bulked up its arsenal with a focus on performance marketing – introducing features pixel tracking and shoppable ads, as well as reach and frequency buying.

In the years since going public in 2017, the company has come under intense scrutiny about its sluggish user growth.

However, in 2019 the platform has turned a corner and beat analysts’ expectations to hit 203 million daily active users; an increase of 8% on July last year. Revenues were up too, with a 48% bump to reach $388m in Q2 this year.

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