Using a new machine learning system, Snapchat soon hopes to be able to know with more certainty which of its users will swipe up for ad engagement. They will be using a new feature called “goal-based bidding”, available through Snapchat’s API, later this month, which will allow advertisers to interactively tell the company whether or not they like the way ad engagement is working out. The new ad engagement will allow user to simply swipe for actions such as installing a new app, visiting a website or watching a trailer for a popular new movie, as opposed to the old style where a certain number of users was reached.
The main goal of this new aim is to allow advertisers a more cost-effective scenario, so that impressions are not wasted on those who do not actually swipe on or watch ads in their entirety. At least one-fifth of the advertisers who currently use API have used goal-based bidding.
Advertisers will still be charged on a CPM, or cost per thousand impressions basis, but Snapchat will now be delivering certain ads specifically to targeted audiences who they deem more likely to swipe on or engage with these ads. The new option allows advertisers to buy Snapchat ads through third-party vendors, which they can buy through other apps and from other places on the web.
Snapchat has already said that a portion of their advertisers report almost 40% efficiency in cost-per-swipe technology and that the ad view time has increased as well, though it was not reported by how much. Snapchat also says that it is probable, in the near future, that they will add more optimizeable goals for their advertisers to make use of. They have really devoted some time this past year to adtech capabilities with the hopes of giving their advertisers more personalized control in their campaigns. Facing Facebook and their sophisticated advertising tactics has proved a formidable task, so this machine learning capability gives them more hope that advertisers will see more value in their system.
Some analysts are predicting that revenue for Snapchat in 2017 will reach as much as $935 million after taking in such changes as ad formats, targeting and certain partnerships. Snap is currently working with eleven different companies to gauge measurements for their ads including Nielsen, Google DoubleClick, Oracle and Moat. Executives currently working with Snap are trying to portray the company on the same level as Apple and Facebook.