Snapchat has now added Goal-Based Bidding (GBB) to its campaign options. The new feature lets advertisers purchase ads via the company’s API, which incorporates machine learning to find audiences more likely to engage with an ad format.
Kraft Snapchat campaign
Swiping an ad on Snapchat means engagement and can be used for app installs or website referrals. As the name of the new format suggests, marketers discuss their goals to increase swipes with Snapchat and provide a value for a single swipe. That enables the company to automatically bid and deliver adverts to a targeted audience most likely to engage.
The campaigns are charged on a CPM basis and are generally said to be more effective than impressions only. Snapchat says 20% of advertisers are currently using GBB and have noted an increase in efficiency of cost per swipe of up to 40%.
In addition, the messaging app has been busy expanding its advertising products and services last year, evident in the numerous patents it applied for. It is also making way for a range of new partnerships with large firms such as Google, and analysts are expecting an IPO coming some time this year.
Innovation appears to be at the forefront of much of the company’s activities and 2017 is set to be an exciting year both for Snapchat users as well as advertisers.