Breaking News

Snap's (SNAP) New Dynamic Ads Target E-commerce Advertisers

By Zacks Investment ResearchOct 17, 2019 11:57PM ET
Snap's (SNAP) New Dynamic Ads Target E-commerce Advertisers
By Zacks Investment Research   |  Oct 17, 2019 11:57PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Snap Inc. (NYSE:SNAP) recently announced its new advertising solution, Dynamic Ads, to attract ad dollars from retail, e-commerce and other direct-to-consumer (DTC) brands.

Dynamic ad platforms enable automated personalization by picking items from advertisers’ product catalogues and targeting them automatically at audiences with relevant interests and recent search patterns on websites.

Additionally, the platform also benefits advertisers by removing their need to advertise each product manually and individually.

Snap’s Dynamic Ad solutions include in-built templates to create variations of different mobile ads at scale without the use of manual designing skills. Advertisers’ preference of template selection will guide Snap's systems to build relevant ads in vertical view format for Snapchat users.

Moreover, advertisers can sync a product catalogue and select audience for prospecting or re-engagement, enabling Snap’s system to deliver ads in real-time.

Further, the company offers features like the “always-on” campaign mode that adopts product changes like prices, availability etc. and makes ad adjustments to continuously cater to preferences and interests of shoppers on Snapchat.

Snap’s Dynamic Ads beta will begin in the coming weeks for advertisers initially open to Snapchat users in the United States only. Support for additional regions is planned in the coming months.

Competition in Dynamic Ads

Snap faces competition from similar dynamic ad options available on Facebook (NASDAQ:FB) , Alphabet’s (NASDAQ:GOOGL) Google, Amazon (NASDAQ:AMZN) , Instagram and Pinterest (NYSE:PINS). Such platforms also enable businesses to upload product catalogues in order to accelerate promotion efforts.

However, Snap's offering stands out as it comes with an array of creative templates to better showcase advertisers’ content as opposed to its competitors who add it to a generic listing.

Per a company report, brands like Princess Polly and the U.S. Vitality showed promising results from Dynamic Ads testing done in third quarter. The results reflect 66% decrease in cost per purchase and a 286% increase in return-on-advertising-spend in campaigns run by various advertisers.

Additionally, Snap is benefiting from growing saturation in various digital advertisement platforms and higher ads pricing witnessed by its competitors. DTC brands are shifting business to Snapchat for cheaper coverage.

Per a Business Insider Report, Snapchat Story Ad cost per 1,000 ad impressions (CPM) run at low rates of $2 compared with CPM rates of $10-$16 charged to advertisers for Instagram ads.

Moreover, Snap is increasingly adding features to make the app more shopping friendly, engaging and effective for marketers and users. Marketers are increasingly spending on promotional advertisements.

Notably, global digital ad spending is expected to grow to 517 billion by the end of 2023, per Statista report, which bodes well for Snap.

Moreover, Snap recently launched the first shopping-enabled game from Adidas (DE:ADSGN) on Snapchat. The company also inked partnership with Spotify (NYSE:SPOT) to launch in-app stores from select accounts like Kylie Jenner’s Kylie Cosmetics, Kim Kardashian’s KKW Beauty and Spencer Pratt (Pratt Daddy Crystals) to enhance Snapchat users’ shopping experience and brands visibility.

These factors are expected to drive user base. Notably, Daily Active Users (DAUs) at the end of second-quarter 2019 were 203 million, up 13 million sequentially. Additionally, impressions per DAU were up 122% from the year-ago quarter, driven by growth in user engagement.

Per a company report, more than 75% of the U.S. population between 13 to 34 years age is active on Snapchat, and daily Snapchat users open the app over 20 times each day.

However, Google’s 32% and Facebook’s 21% revenue share in the global digital ad market is a distant goal for Snap, which accounts for 0.5%, per an eMarketer report quoted by Reuters.

Zacks Rank

Snap currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft (NASDAQ:MSFT) in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.

See 7 breakthrough stocks now>>, Inc. (AMZN): Free Stock Analysis Report

Facebook, Inc. (FB): Free Stock Analysis Report

Alphabet Inc. (GOOGL): Free Stock Analysis Report

Snap Inc. (SNAP): Free Stock Analysis Report

Original post
Snap's (SNAP) New Dynamic Ads Target E-commerce Advertisers
Snap's (SNAP) New Dynamic Ads Target E-commerce Advertisers

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email