Snapchat has evolved into one of the most-used forms of social media among Millennials. Although its audience is unquestionably growing by large numbers, some brands have faced a crossroads when determining whether they should use Snapchat for business. MDG Advertising developed an infographic, Snapchat 101: What Brands Need to Know, to provide answers to the difficult decisions faced by organizations as they figure out how to properly utilize Snapchat for business.
Since the beginning of Snapchat’s existence, its audience has continually expanded. Its consumer base, with 150 MM active users, has even surpassed Twitter’s large active audience. Snapchat’s growth also remains far faster than other social platforms. [pullquote]The consumer base in the U.S is expected to expand by 27% this year, making Snapchat for business a massive opportunity.[/pullquote]
When it comes to the user demographics of Snapchat for business, marketers often believe that its audience is primarily young Millennials. While this may be accurate now, the network’s consumer base is constantly evolving. Although Snapchat ranks #1 with teenagers, half of new users are older than 25 and the growth rate of this audience is double that of the 25-and-younger crowd. Snapchat’s popularity among teens surpassed Instagram, ranked #2 at 27%; Twitter at #3, with 18%; and Facebook at #4, with 17%.
With an expanding audience, it may seem surprising that many brands still have not utilized this platform. As of now, only 5% of organizations stated that they utilized Snapchat for business. While there are not many companies participating in Snapchat for business, a great number have expressed interest in the platform. Also, although 16% of brand managers said they planned to use Snapchat in 2016, 28% said they would first require more information on the growing platform. Furthermore, using Snapchat for business has not risen exponentially because assessing reach and impression counts can be challenging, making measuring ROI difficult. Marketers tend to gravitate toward Facebook because its ROI is far easier to see.
Another big hurdle companies face is utilizing Snapchat for business the right way. The platform gives brands the ability to directly connect with their followers. The Story and Chat feature has proven that it can successfully engage consumers by revealing discounts or providing sneak peeks on the action happening behind the brand. Also, Sponsored Geofilters and Sponsored Lenses have allowed for fun and engaging ways for brands to excite their audiences.
While Snapchat’s growth is undeniable, some brands still ask the question: Is utilizing Snapchat for business the right move? The answer is not black and white. For example, if your target market is very young, your business should absolutely be adopting Snapchat for business. In contrast, if your demographic is older or not as tech savvy, then the answer is less clear. Our advice? Keep an eye on Snapchat’s growth and expanding audience because your brand may find it vital to your business very soon.
Snapchat For Business – The Statistics
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