Reuters & WSJ Snapchat Commentary

Recently I was interviewed by Reuters and discussed a range of Snapchat topics from their ad business to industry perspective on how brand marketers are approaching the platform.

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Some commentary was published and picked up by other publications like the WSJ. Below is my full commentary.

REUTERS: Any idea how Snapchat’s ad business is growing? Going gangbusters? Incremental growth?

TOM: Signs are pointing towards a SnapChat IPO in the near future. In order to do this they need to have a solid monetization strategy in place.

Snapchat has 100 million daily active users, 700 million disappearing snaps being sent and more than 500 million stories viewed on a daily basis and recently claimed over 6 billion video views.

Snapchat is laser focused on engagement. They have shifted from being primarily a creation platform towards consumption driven by opt-in engagement.

The audience is definitely there. When it comes to advertising, there has been a lot of testing to ensure the user experience stays pure as well as aligning alpha programs with brands that are willing to pay a premium.

How this is transitioning from alpha ad types to scaleable offerings that show value beyond an impression is yet to be determined.

REUTERS: How have advertisers/brands who have advertised on Snapchat responded to the platform? Are they excited? Moderately hopeful? Or fleeing because they are unhappy?

By using the 70/20/10 media approach,  most of my clients have classified Snapchat in the 20/10 test & learn experimentation. For brands that are looking to cut through with 13-34 year olds and drive some type of contextual experience on the platform they are excited by the impressions, but beyond that there is not much data as Snapchat is contextual Opt-in without profile information.

Brand marketers are excited about the impact the platform can have on sponsorships, live events and geo-specific targeting… Products like Geofilters and Sponsored Lenses are potentially interesting to further connect on the local level. This applies to events or retail. Shopping malls, movie theaters, etc.

REUTERS: Are there any common concerns out there among brands about the platform that you’ve heard?

Lack of robust analytics and attribution are the most common.  You have insights into views, but the biggest complaint that I hear beyond that is that CTA’s are not really a part of the experience, for example you cannot add a URL or hashtag in a sponsored geofilter. It is simply about brand awareness vs activation.

What is interesting is Snapchat’s recent partnership with Liveramp that will allow data matching to validate ad exposure and eventually offline conversion measurement.

REUTERS: Where has Snapchat excelled at video ads? And where has it fallen short?

Snapchat’s approach to video is through the lens of curated context. They want the video experience to be immersive without pre-roll with a focus on vertical vs. horizontal content.

They want 100% viewable, Full screen. They have research that shows the daily minutes spent on screens and how vertical screens dominate usage behavior.

CORE POINTS OF DIFFERENCE:

1)    Always Full Screen
2)    Always User Choice
3)    Always optimized for Mobile
4)    Always plays with Sound

Snapchat video is ideal for awareness, but do not expect to have CTA’s such as URL’s or hashtags supported. This is strictly an awareness and engagement platform with limited analytics but massive reach with the key 13-24 audience set.

REUTERS: Does it offer good intel on viewers or good targeting?

Not on targeting as it is primarily contextual opt-in, but the one positive is unlike Facebook’s Autoplay approach, Snapchat requires a user action.

Snapchat is focused on providing additional insight into ad exposure through data partnerships.

REUTERS: What are the expectations by advertisers from Snapchat?

For now it is about reach and partnering with an emerging platform that has a large and highly coveted user base.

REUTERS: What expectations have Snapchat set about its ad business growth?

Finding the right ad type and monetization strategy are key for Snapchat as they gear up for an IPO.

REUTERS: And why on earth are brand like Toyota and HP even advertising on Snapchat – a bunch of teens without buying power?

More than 60% of US 13 to 34 year-old smartphone users are snapchatters. That number extends beyond teens into the early life stage millennials. The largest group on the platform is actually 18-24 year olds that do have buying power, especially for entry level products from brands like Toyota & HP.

Brands like Snapchat’s audience, approach to curated context & intimacy vs. broadcast newsfeed, Snapchat is focused on vertical content delivery that coincides with the core experience.

The Reuters commentary was also picked up by the Wall Street Journal’s CMO Today.

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Retaining Talent & Empowering Employees

Recently, I was asked by the iMedia team to discuss my approach to employee retention. My management style is built around the philosophy of empowerment for my staff.

I look for critical thinkers who have the desire to constantly learn and are looking to develop their industry point of view. Here is the full video outtake from the conversation.

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IBT Q3 Earnings Commentary Facebook, Twitter & Google

Recently the International Business Times asked me to provide commentary and analysis of Q3 2015 earnings reports for multiple digital and technology organizations. I find quarterly earnings calls to be incredibly insightful, especially towards the end of the calendar year as new product investment announcements are made.

Below is my multi-article commentary about the future offerings that may impact new products and digital marketing experiences for Google, Twitter & Facebook.

FACEBOOK: Facebook had an impressive 3rd quarter as they continue to invest in core products and services. What was most impressive were the latest numbers being touted, specifically for private groups, messenger and WhatsApp.

earnings numbers Q3

Facebook’s approach to aligning products with varying levels of consumer intimacy while also keeping an eye towards the future of computing was impressive all while turning in impressive quarter over quarter earnings.

Post Earnings Facebook Commentary

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Pre-Earnings Facebook Analysis

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TWITTER:  Twitter definitely faced turbulence with the release of their Q3 earnings report. I do believe that the renewed focus on maximizing interest-based connections through Moments is a key addition to better engage the existing & logged out users.

Time will tell if this will be enough to convince investors to stick with Twitter as a long term investment. But their recent emphasis on creating new experience based hubs is a strong move towards a maximizing the value created by their existing audience.

Post Earnings Twitter Commentary

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Pre-Earnings Twitter Article

IBT Twitter

GOOGLE: I recently posted about Google’s Q3 earnings. Google’s decision to streamline their organization into a house of brands vs. a branded house will ultimately have a positive impact on their advertising business and more details about revenue and profitability will become clear in Q4 once Google & Alphabet separate revenue by business unit.

For Q3, By clearly defining the boundaries of Google vs. the other entities housed in Alphabet, Google has aligned the core revenue generating advertising products and simplified the value proposition of what Google is.
Moving forward as advertising dollars continue to shift from search into other advertising product lines, Google can further integrate their offerings into a comprehensive ecosystem that can flex to better meet the needs of advertisers and continue to be a core revenue driver to further compete with Facebook.

International Business Times

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Adweek Social Targeting

Recently I provided commentary about social ad targeting for both the print and online version of Adweek. The article reviews the advancement of targeting abilities within some social platform providers as well as outlining those that take the approach of a contextual opt-in.

adweek

Here was my full commentary regarding social targeting:

There are definitely two schools of thought when it comes to the targeting abilities of social networks. Those who are constantly refining their offerings and enhancing their targeting capabilities and those who rely on their readers to choose their own path. 

Facebook has always placed value on leveraging social affinity to refine it’s advertising offerings. They have enhanced their capabilities when it comes to geo-targeting, allowed brands to experiment with sponsored dark posts and now they are adding predictive capabilities to further align social affinity with ad interactions. 

Facebook also launched programmatic commerce capabilities with dynamic product ads. By supporting dynamically optimizing, cross-device ad types, Facebook is  focusing on delivering highly contextual advertising at scale. By creating “smarter” segments based on affinity and now predictive elements Facebook can further enhance their approach to programmatic media and show the ability to create 1:1 advertising at scale. 

On the opposite end of the spectrum you have the contextual opt-in approach to advertising that is favored by Snapchat, Buzzfeed and Reddit. This approach is not dependent on highly targeted algorithms it is enabled by contextually relevant content as the core driver into the experience. 

The challenge with this approach at times is to ensure the ads themselves are as contextually relevant as the native content that is driving the original experience. There is also growing demand from brand marketers for additional insight and personalization of experiences that rule out certain platforms that favor contextual opt-in vs. highly targeted. 

There are benefits to both approaches depending on the core objectives and goals of the brand marketer and whether the goal is impressions or creating a deeper association with the brand.

Here is a link to a PDF version of the print article: Adweek_Social Targeting_Tom Edwards

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