With Snap, Inc. ($SNAP) currently trading about 30% below its all time high price (of $29.44 right after its IPO), it will have to show earnings and progress to shareholders in its upcoming first quarterly report as a public company. The release of Snapchat’s new ad targeting option called Snap Engagement Audiences that command higher CPMs than standard targeting is a good start.
This new ad offering will allow brands to set up new ad campaigns to target Snapchat users who already had interacted with their ads on the app previously. These users have already shown an interest in the brand with the previous interaction and are likely considered to be in a “consideration stage” or “mid-funnel”.
Snap considers this to be engagement targeting instead of standard re-targeting because everything takes within within the app instead of involving external websites and data. In addition, engagement targeting will not include audiences that had only watched the previous Snap ad without interacting with it. By narrowing the funnel and serving up more higher potential audiences to the brands, Snapchat can then encourage higher bids for these impressions (since brands are still paying by and bidding for impressions) that would be cost efficient to the brands.
MarketingLand posted a very detailed description of this new Engagement Audiences process along with this example: a mobile game advertiser could run a Snap Ad that features a long video documenting how the game is played to seed people’s interest. Then it could follow up with a Snap Ad to install the app but only show it to the people who not only watched the longer game trailer but also are considered likely to actually install the game.
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