Now Snapchat has shared latest data on performance of e-commerce brands in the app and how Snap ads are helping to boost purchase activity. It took the help of Triple Whale for conducting study of study of 20,000 ecommerce advertisers having total spend of $3 billion across platforms for getting a better view of how Snap ads are giving performance for online retailers.
As per the study, even though Snapchat is a small platform by spend share but still it achieved a ROAS of 7.5% improvement whereas other platforms saw a decline. In case of cohort of advertisers, Snapchat showed the lowest CPA across all platforms.
As per the data, apparel advertisers saw the highest ROAS across platforms and one of the key drivers of Snapchat engagement is visual storytelling. 77% of Snapchatters feel that visual search helps in finding apparel items quicker and easier when compared with 50% of non Snapchatters. More than 80% of Snapchatters say that social is primary way for keeping up with the latest fashion trends.
In case you are looking to sell fashion items, Snapchat should be your consideration in case you are looking to reach out to young audience. Data points out that fashion brands must consider Snapchat promotions in their content mix.
For Gen Z, mainly in case of ecommerce and fashion, Snapchat is coming out to be a high impact and underutilized channels. With increasing ad costs, this data is signaling a strategic opportunity for diversification of media spend and boosting efficiency ahead of the upcoming holiday season.
More than 5,000 Shopify stores were analyzed and it was found out that Snapchat campaigns generated higher ROAS when compared with TikTok and Meta. Though Meta is still leading in overall spend, SnapChat has been delivering more effective results for ecommerce brands which are aiming to reach millennial shoppers with TikTok having a ROAS of 0.62x, Snapchat having a ROAS of 1.28x and Meta giving an ROAS of 0.59x.
If you consider these numbers, this shows a significant shift in terms of platform efficiency mainly for direct to consumer brands with lean ad budgets. SnapChat has shown lower CPMs and more efficient click though rates. Brands which used SnapChat immersive ad formats such as Story Ads and AR lenses saw quite meaningful user interaction and a greater purchase intent.
The key reason for growing impact has been its highly engaged niche audience in beauty, fashion and wellness verticals. With increasing costs and signal loss from iOS tracking restrictions, ecommerce brands are looking towards rethinking their channel strategies where Snapchat brings a balance of low competition, cost and higher impact which makes it an appealing alternative compared to saturated platforms such as Facebook and Instagram. A number of brands stated SnapChat pixel accuracy and AR try on tools as game changers for scaling of sales.
Though TikTok and Meta have been major players but cost effective engagement of SnapChat is too much of value to ignore mainly for new and emerging ecommerce ventures. Snapchat might offer better growth and customer potential in 2025 when compared with others.
SnapChat stands out for its lower CPMs and efficient click through rates. Brands which used immersive ad formats of Snapchat such as Story Ads and AR Lenses saw meaningful user interaction and higher purchase intent.
Snapchat has the benefit of highly engaged niche audience mainly in beauty, fashion and wellness verticals which would work as a key factor in its growing impact.
So if you are in the ecommerce sector especially fashion and beauty you should look at using Snapchat in your business needs and see some good returns!
