Snapchat advertising added a new element for advertisers this fall, opening its Ads API platform to programmatic bidding. The social media platform’s inclusion of programmatic buying follows similar trends in television and digital display, but these market trends are not the only thing Snapchat now shares with TV advertising.
Snapchat is changing its Discover advertising model with publishers by moving to a licensing-fee model for content, according to AdExchanger. This model—which television has been employing for decades—signals an investment in and focus on content.
By paying up front for content, the platform is trusting Snapchat advertising teams will be able to monetize the audiences tuning in to that content. When coupled with programmatic sales, this model allows advertisers to pay for the content that matters to their audiences. Similarly, the broadcast industry has been leveraging programmatic to lure advertisers who are looking for a reliable way to reach engaged viewers.
In addition to content, Snapchat’s changes also hint at advertisers’ desires to connect with targeted audience segments. As programmatic TV allows brands to target individuals that best match their ideal audiences, social platforms like Snapchat and Instagram are connecting brands with the influencers and micro influencers that have sway with their ideal audience. Digiday reported that Texas-based start-up Gnack is connecting brands to influencers using a programmatic model.
Collaborations with micro influencers—individuals with at least 10,000 followers—were reported to generate three to five times the usual engagement with posts on Instagram. By introducing programmatic buying into the process, platforms like Snapchat are making it easier for brands to connect with these audiences. Snapchat’s API also allows advertisers to target users by age, gender, location, device, mobile carrier, and more.
Simplifying the Buying Process
The addition of programmatic bidding to Snapchat advertising, as well as the move to a licensing model for Snapchat Discover, also simplifies the overall buying process for advertisers.
This automation frees up time and resources, while licensing content also frees the publishers to focus on content creation rather than content monetization. Snapchat is easing into programmatic advertising, according to Business Insider. But while ads are still reviewed to prevent low-quality content from flooding the platform, the overall process has become quicker and more automated.
Snapchat’s developments point to many of the same trends the broadcast industry is seeing. Advertisers are looking for ways to engage people consuming quality content, and they want to ensure those viewers and users make up the right audiences.
By providing new means of connecting with these groups and making those connections easier through automation, programmatic is enhancing the value already in television and social media.