Image app hit Snapchat could stand to benefit from another start-up, called Yext Inc., which powers a location management platform.
Right now, advertisers pay Snapchat for branded geo-filters. These geo-filters act like overlays for consumers to customize their photos with, but they can be placed specific to a location as part of a campaign. So far, brands utilizing the service had to provide their exact geographical details for Snapchat to install the filters. However, Yext has stepped in to make that process a whole lot easier.
Snapchat geo-filter overlays
Howard Lerman, CEO, Yext, explains:
“Some people are saying Snapchat is the new TV – that’s how much time people are spending in it. They were saying, ‘we’re interested in running geo-filter campaigns – can you help us do that?'”
Yext has already seen some interest from major brands to run a geo-filter campaign using the Snapchat integration. For example, convenience store 7Eleven may advertise a product when a consumer is near a store. Guitar Center, a retailer with over 270 stores, was also interested.
Snapchat does have enormous power with over 150m daily users and most of these Millennials or younger audiences. The company, more recently, has been driving its advertising business in order to grow its revenue.
Geo-filters are part of that expansion and have the power to reach 40%-60% of daily users, according to Snapchat at least. Large brands such as McDonalds and Yum! have been utilizing the feature. For smaller businesses, Snapchat has rolled out on-demand geo-filters.
The deal with Yext means that brand data is limited for use by Snapchat, which may be an attractive option for some advertisers.
Yext isn’t new to the location game. The company offers a wide range of location-based services and integrates with over 250 online location tools such as Google Maps and Apple Maps.
Perhaps most enticing, Yext existing clients aren’t paying extra for the service. But they will have to pay Snapchat its own geo-filter fee.
Lerman adds that the Snapchat integration makes Yext an even more attractive proposition for some businesses and advertisers.