Are Snapchat Ads Worth It? [2023 Guide]

Are Snapchat ads worth it?

Let’s find out if those playful filters and disappearing messages can truly work their magic for your business. We’ll dive into the ROI, target audience, and success stories to help you decide.

Stay tuned for the surprising truth!

Quick Answer

Snapchat ads can be a valuable tool for businesses to connect with their target audience and drive traffic to their website.

Reasons why Snapchat ads are worth it

Challenges of Snapchat ads

Overall, if a business’s target audience includes Gen Z and millennials, and the brand appeals to Snapchat’s user base, then it may be worth investing in Snapchat ads to increase brand awareness and sales.

However, it’s important to carefully evaluate each campaign and determine if the cost is worth the investment.

Overview Of Snapchat Ads

You’ll learn:

  • 7 ad formats (including AR Lens)
  • Basic full-screen ads
  • Showcasing multiple products in one ad

Snapchat Ads are a type of mobile advertising that allows businesses to connect with Snapchatters by creating engaging, interactive, and shareable content.

There are seven Snapchat ad formats, including AR Lens ads, Story Ads, Collection Ads, Lenses, Filters, Commercials, and Dynamic Ads.

Here is an overview of Snapchat Ads:

Snapchat offers 7 types of ads to help businesses reach their target audience. Here is an overview of the different types of Snapchat ads:

  1. Single Image or Video Ads: This is the basic ad format on Snapchat. It displays a single image or video in full screen and can be used for various brand objectives.
  2. Collection Ads: Collection ads allow advertisers to showcase a series of products within a single ad. Users can swipe through the ad to view different products and click to learn more.
  3. Dynamic Collection Ads: Similar to collection ads, dynamic collection ads are automatically generated based on a product catalog. This enables advertisers to create personalized ads for different users based on their browsing history and interests.
  4. Story Ads: Story ads appear between users’ stories and can be a static image or video. They are effective for driving brand awareness and promoting events, sales, or other one-off activities.
  5. Commercial Ads: Commercial ads are full-screen ads that appear during Snapchat’s curated content, such as shows and publisher stories. They are suitable for driving brand awareness and promoting events or activities.
  6. AR Lens Ads: AR lens ads allow advertisers to create interactive ads that use augmented reality to engage users. Users can interact with the ad using their phone’s camera and share their experience with friends.
  7. Filter Ads: Filter ads are overlays that users can add to their snaps. They can be branded with a company’s logo or message and are ideal for promoting events or increasing brand awareness.

Snapchat ads can be tailored to different business goals and objectives, including driving awareness, sales, subscriptions, or downloads.

With a variety of ad formats, Snapchat provides businesses with opportunities to engage with its growing audience worldwide.

Target Audience Analysis

You’ll learn:

  • Snapchat popularity
  • Age groups
  • 9% world’s population reach
  • Snapchat users are highly engaged
  • Close friends influence purchasing decisions

Snapchat is a social media platform that is popular among younger generations, particularly those aged 15-25, who make up a significant portion of users in the United States. Here are some key demographics and statistics that matter to marketers:

  • 18-24 year olds are the largest age group that use Snapchat, followed by ages 25-34.
  • A significant portion (39%) of Snapchat’s advertising audience is between the ages of 18 and 24.
  • Approximately 20.3% of Snapchat users are under 18, and 38.9% fall into the 18 to 24 age range.
  • Around 10.4% of people aged 13 and above worldwide use Snapchat.
  • Snapchat ads have the potential to reach a substantial portion (9%) of the world’s population, which is approximately 712 million people.
  • Snapchat’s advertising audience reach has grown by 11.0% over the past 12 months.
  • 75% of 13-34 year-olds in 20 countries use Snapchat.
  • In the United States, 65% of internet users aged 15 to 29 use Snapchat.
  • Men between the ages of 18 to 24 years represent a significant portion (one in five) of Snapchat users.
  • Snapchat users are highly engaged, with close friends being 4 times more influential than celebrities or influencers when it comes to purchasing decisions.

As a marketer, it’s important to invest time in platforms where your target audience is most active.

Snapchat’s audience skews young, making it a good fit for brands looking to connect with a young, passionate, and highly engaged demographic.

Instead of viewing Snapchat as a platform for connecting with close friends and family, consider how you can use it to build strong relationships with your audience as a marketer.

Cost And ROI Analysis

You’ll learn:

  • Drive app installs, website visits, video views
  • Effective for brand awareness, sales
  • Varying Snap Geofilter CPMs

Snapchat ads can be a cost-effective way to reach a younger audience. Here is what we can learn from the search results about Snapchat ads cost and ROI analysis:

Snapchat Ads Cost

  • Snapchat ads cost around $2.95 per thousand impressions.
  • Snap Ads, which are traditional 10-second video ads that appear between stories, cost around $50,000 per day.
  • Snap Lenses can cost upward of $300,000 for a day, and Snap Geofilter CPMs can also vary.
  • Snapchat charges per 1,000 impressions (eCPM) through an auction system called goal-based bidding, where you can set up a maximum bid and Snapchat will show your ad to the target audience until you reach that bid.
  • The cost of Snapchat ads can range between $5,000 to $700,000.
  • The average cost per impression on Snapchat is $2.19, the average cost per swipe up is $0.57, and the average cost per action is $5.53.

Snapchat Ads ROI Analysis

  • Snapchat ads can be a cost-effective way to reach a younger audience.
  • Snapchat has a unique audience that is highly engaged and spends a lot of time on the platform.
  • Snapchat ads can be used to drive app installs, website visits, and video views.
  • Snapchat’s measurement and targeting capabilities have improved over the years, making it easier to track ROI.
  • Snapchat ads can be effective for building brand awareness and driving sales.
  • Snapchat ads can be a good fit for businesses that want to reach a younger demographic, especially those in the fashion, beauty, and entertainment industries.

Comparison With Other Platforms

You’ll learn:

  • Snapchat ads vs. Facebook and Google
  • Advertiser trends and demographics
  • Effectiveness of Snapchat ads
  • Unique audience-building potential

Snapchat ads can be compared to other platforms such as Facebook and Google. Here are some key points from the search results:

Snapchat vs. Facebook vs. Google

In a review conducted by Forbes, Snapchat’s, Facebook’s, and Google’s ad platforms were compared, revealing that Snapchat ads can be a worthwhile investment. Snapchat ads are known to be highly effective and provide good value for your money compared to some other platforms. However, when it comes to conversion rates, Facebook leads among social media platforms.

Ad Formats

On Snapchat, ads can be in the form of images or videos, ranging from 3 seconds to 3 minutes in length. They should have a 9:16 aspect ratio and a minimum resolution of 1080px x 1920px. There are two exceptions to this format: Lens AR and Filters ads, which are sponsored elements that people use in their own content.

Advertiser Trends

Facebook and Snapchat attract different user demographics, and this is reflected in the advertising trends. Snapchat ads are generally more affordable compared to other platforms. However, ad prices are rising across all platforms, with Snapchat’s average CPM (Cost Per Thousand impressions) being $2.95 USD in 2018, compared to Facebook’s ($5.12 USD) and Instagram’s ($4.20 USD).


According to a nearly two-year Nielsen study, Snapchat ads consistently delivered double the overall return on investment (ROI) compared to other platforms. Incorporating various Snapchat ad formats increased incremental reach by 25.2%. Notably, Subway’s Snapchat ads reached 75% of users who exclusively saw the ads on Snapchat, highlighting the unique audience-building potential of Snapchat ads.

Snapchat ads can be a worthwhile investment and are relatively cheap compared to other platforms. However, Facebook has the highest conversion rate among social media platforms. Snapchat ads have been shown to be effective and have unique audience-building potential.

Success Stories

You’ll learn:

  • Domino’s: Reached 800k Snapchatters
  • Starling Bank: Lower cost per install
  • Sephora: High engagement and sales
  • Subway: Increased reach by 25.2%
  • Hopper: 4X flight bookings, lower cost on app installs
  • Pit Viper: $0.15 cost-per-swipe up, $30.07 ROAS

Here are some success stories and examples of Snapchat ads:

  • Domino’s: Domino’s used Snap Ads, commercials, and filters to launch their “New Bigger Better” pizza campaign. Result? Reached 800k unique Norwegian Snapchatters around their restaurants.
  • Starling Bank: Starling Bank promoted their new debit card and mobile banking app to a younger audience using Snapchat ads. They’re able to achieve a 61% lower cost per install.
  • Sephora: Sephora engaged a younger audience with interactive Snapchat ads to promote their new lipstick line, enabling users to try on different shades using augmented reality. This unique strategy delivered high engagement and sales.
  • Subway: Subway utilized Snapchat ads to promote a new sandwich and they were able to increase their reach by 25.2%.
  • Hopper: Hopper promoted their travel app through Snapchat ads, resulting in 4X flight bookings and 50% less cost on app installs.
  • Pit Viper: Pit Viper showcased their sunglasses collection through Snapchat ads, they were able to achieve $0.15 cost-per-swipe up and $30.07 ROAS.

You’ll learn:

  • Increasing ad presence
  • AR lenses and filters
  • Story ads
  • Dynamic ads
  • Snapchat’s value for businesses

Snapchat is increasingly becoming more business-forward as it rolls out new features for ads. Here are some trends and predictions for Snapchat ads in 2022/2023:

  • Increasing Presence of Advertisements: Snapchat is becoming a useful tool for businesses to reach their target audience and communicate with existing customers. More businesses will maximize their use of Snapchat and other social media networks for advertising, marketing, and sales.
  • AR Lenses and Filters: Snapchat’s AR lenses and filters provide a unique way for businesses to engage with their audience and promote their brand. They create interactive experiences that are fun and engaging for users.
  • Story Ads: Story ads are full-screen ads that appear between user-generated stories. They are an effective way to reach a large audience and promote products, services, or events.
  • Dynamic Ads: Dynamic ads are personalized ads tailored to each user’s interests and behavior. They promote products and services relevant to each user, increasing their effectiveness.

Despite Snapchat’s own forecast of a potential 10% drop in ad revenue over the first three months of the year, Snapchat remains a valuable platform for businesses to reach a younger audience and engage with their customers in a unique and creative way.

Examination Of Snapchat’s Effectiveness In Specific Industries

You’ll learn:

  • Fashion Industry
  • Ecommerce Industry
  • Gaming Industry

Snapchat has been effectively used by several industries, including fashion, e-commerce, and gaming. Here are some examples:


  • Snapchat’s quick commerce and building capabilities make it appealing for the fashion industry. It has been recognized for creating value for both shoppers and the fashion industry.


  • Snapchat’s investments in augmented reality (AR) have enhanced the e-commerce experience on the platform. Marketers and retail leaders are drawn to the platform’s experiential commerce features.
  • Snap’s AR technology has expanded the reach of e-commerce brands. Zenni Optical is an example of a brand that effectively used AR on Snapchat to allow mobile shoppers to try on different styles of glasses.
  • Snapchat’s engaging platform enables businesses to connect with younger audiences and encourages users to interact with their brand.


  • The gaming industry has utilized Snapchat to promote new games and engage with players through sponsored lenses and filters.

Snapchat has proven to be an effective platform for various industries, such as fashion, e-commerce, and gaming. It offers quick commerce, building capabilities, experiential commerce, and opportunities to connect with younger audiences and foster user interaction with brands.

Effective Targeting And Audience Segmentation

You’ll learn:

  • Retargeting
  • Snap Pixel
  • Predefined & custom audiences

Snapchat Ads provides businesses with various targeting options to reach their desired audience. Here are some key points:

  • Broad demographics and customer data: Snapchat Ads allows businesses to utilize broad demographics and customer data to create targeted ads.
  • Retargeting: Ad Engagement audiences enable businesses to retarget individuals who have previously engaged with their Snapchat ads. This includes people who have shown interest by swiping up on an ad, viewing a full video ad, opening a story ad, sharing or saving a lens or filter, and more.
  • Third-party custom audiences: Businesses can reach Snapchatters based on their past buying patterns or viewing behaviors by leveraging an expansive data marketplace to develop specific segments for their campaigns.
  • Snap Pixel: Implementing the Snap Pixel provides businesses with more robust targeting capabilities, allowing them to optimize their advertising campaigns effectively.
  • Predefined audiences: Snapchat Advertising offers predefined audiences that businesses can select to reach specific Snapchatters. These audiences are built and packaged using Snapchat and third-party data, enabling businesses to target individuals based on their online and real-world interests and behaviors.
  • Custom audiences: Snapchat Ads provides six types of Custom Audiences to help businesses find new and current customers. These include Ad Engagement audiences, Profile Engagement audiences, Lookalike audiences, Mobile Apps Events, Customer List audiences, and Snap Pixel audiences.

Snapchat Ads offers a diverse range of targeting options for businesses to effectively reach their desired audience and optimize their ad campaigns.

Ad Campaign Planning & Setup

You’ll learn:

  • Objective selection
  • Campaign naming
  • Monitor and analyze
  • Seeking support

Here are the steps to plan and set up a Snapchat ad campaign:

  1. Choose an objective: Determine the desired action you want Snapchatters to take when they see your ad, such as driving website traffic, app installs, or raising awareness.
  2. Name your campaign: Give your campaign a name that reflects your objective and target audience.
  3. Set start and end dates and determine the budget: Specify the duration of your campaign and allocate a budget that aligns with your objectives.
  4. Create your ad set: Define your target audience based on factors like age, gender, location, interests, and behaviors. You can also choose specific days and times for your ads to run.
  5. Build your ad: Utilize Snapchat’s ad creation tools to develop your ad creative. Select from various ad formats like Snap Ads, Story Ads, and Collection Ads. Ensure that your ad content is engaging, captivating, and grabs the viewer’s attention within the first second.
  6. Choose the ad creation method: You can create a Snapchat ad campaign using either Ads Manager or Advanced Create.
  7. Monitor performance and analyze results: Once your ad campaign is running, regularly check and analyze the performance metrics to gain valuable insights. This will help you assess the effectiveness of your campaign and make any necessary adjustments.
  8. Seek support if needed: If you have any questions or require assistance, you can reach out to Snapchat’s customer support or schedule a call. Additionally, Snapchat’s Help Center offers more tips and guidance on creating effective Snap Ads.

By following these steps, you can plan and set up a Snapchat ad campaign to reach and engage with your target audience effectively.

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