The future of Snapchat is advertising, according to Snapchat CEO Evan Spiegel.
In June, Snapchat launched its new 3V advertising model (vertical, video, views) to capitalize on the size of its user base. As Spiegel noted, it is built from the ground up for mobile.
Why the move to ads?
According to a 2014 review by Namo Media, Snapchat could be missing out on as much as $1.5 million in revenue every day by not using the platform for advertising. Snapchat reports that more than 2 billion video views occur daily, with almost 100 million people actively using the platform each day. Snapchat’s huge audience is ripe for advertisers.
Spiegel shared the new Snapchat model with users and advertisers via video announcement:
What is native video advertising?
Native video advertising is a form that is consistent with the user’s typical experience with the platform. When done well, native advertising integrates seamlessly with a platform’s other content without disturbing the culture or feel of the user experience.
According to a study conducted by Sharethrough/IPG Media, consumers looked at native ads 53 percent more frequently than display ads, and 25 percent more consumers looked at in-feed native ad placements. Its infographic shows some of the advantages native ads have over traditional online advertising strategies.
What are 3V ads?
Snapchat’s 3V ads are intended to mimic the design and culture of the social-media platform and appear naturally through curated content as well as by sponsored posts. 3V stands for Vertical, Video, and Views. The advertisements will be created in vertical (portrait) orientation and optimized for mobile phones, taking up the full screen. Snapchat claims viewers are nine times more likely to watch an entire video in this layout.
Advertisers will be able to target their audience to an extent, focusing on characteristics such as location, age, gender, and Snapchat’s Discover channel. Snapchat also will offer analytics that help advertisers understand the audience their ads reach and the kind of impact those ads have.