Snapchat: The Next Big Thing for Your Brand?

By Olivia Dello Buono

Snapchat, the app once largely used by tweens as a way to get around their parents' texting rules has found relevance with a new crowd. From MTV to Acura, companies are making the most of the free photo and messaging application to connect with customers and fans.

With over 100 million active monthly users, it's easy to see why the app piques the interests of marketers and brands alike. But, like any visually-driven platform, it's important to figure out if Snapchat is the right fit for your business.

What Is Snapchat?

Snapchat is a messaging application that allows users to snap and share photos and videos to a select list of followers. You can control how long the image may be viewed, after which it will disappear.

Want to share your Snap with everyone? Snapchat Stories allows you to curate shared content that can be viewed any number of times within a 24-hour time frame. Rather than one-to-one sharing, stories can be shared with friends or the public.

Snapcash, which allows you to instantly transfer money to friends, is among the apps newer features. Much like Venmo and Google Wallet, Snapcash makes peer-to-peer payments a breeze: simply sync your debit card information and type a dollar amount into the messaging feature to send money virtually. If your friends don’t accept the payment in 24 hours, your money is refunded back to your card. So you don’t need to worry about your cash, well, disappearing.

And most recently, the app announced Discover, promoting news and stories from big name sources like CNN, Vice and ESPN. The new feature is Snapchat’s first foray into the digital content realm, giving brands the chance to reach the app’s unique audience. While Discover is still in its early stages, the launch could signify something bigger in Snapchat’s future as a content medium.

So how are companies leveraging this app in their marketing strategies? And, more importantly, can your brand benefit from the addition of Snapchat in your current marketing efforts?

The Rise of a Social Network

Let's cite the Facebook effect: what starts out as a social sharing medium among young adults goes mainstream and quickly finds itself a whole new content platform. Much like its predecessors Twitter and Instagram, Snapchat has challenged the notion of traditional marketing and created a two-way conversation among brands and their followers.

Taco Bell became an early adopter of Snapchat in 2013. At the time, the app's demographic was comprised heavily of teens and twentysomethings. The fast food giant identified the burgeoning opportunity to connect with this in-demand demographic, whose spending power comes in at just shy of $1.4 trillion dollars. They began connecting with fans by sharing timely news and content to great success. Other brands followed suit.

Snapchat + Your Brand

So what is it about Snapchat that makes it one to watch? For starters, the app gives businesses a free platform to broadcast information directly to consumers, a huge advantage over pricier (and dated) traditional advertising. Because of its ephemeral photo and video sharing capabilities, Snapchat works well for sending out time-sensitive messages to fans. And with relevance and engagement becoming top priorities for brands, the app is a cost-effective way for your marketing campaign to reach new audiences.

To give you some ideas on how Snapchat can work for your business, let's take a look at some of the ways that other companies are using Snapchat in their marketing strategies:

• Promotional deals and coupons. Think of it as a modern version of a Loyalty Club: Reward brand devotees by offering them special deals and incentives, such as a special promo code. The New York frozen yogurt chain 16 Handles proved this tactic to be effective with their "Snappy New Year" campaign. The brand asked users to Snap a photo of their fro-yo in exchange for a coupon for their next purchase. The brand reported over 1,400 interactions after the launch.

• Sneak peeks. Snapchat is the perfect platform for sending out exclusive news to followers. Everlane, a Los Angeles-based retailer, teases its newest offerings in 30-60 second Snap Stories. Everlane even created a special URL for Snapchat followers to get early access to its winter offerings. This type of exclusive announcement creates buzz around a product launch and piques interest.

• Contests and giveaways. What better way to engage and build your following then to offer them a chance to win cool stuff? As part of its "Ride of Your Life" campaign, Nissan encouraged fans to send in their best photos expressing how driving one of the brand's cars made them feel. The best responses would then be chosen to win prizes, such as a Playstation 4.

• Transparency. Brands can create a relationship with fans by offering an inside glimpse into the company culture. The Philadelphia Eagles have been connecting with enthusiasts by sending behind-the-scenes photos and videos in real-time. This unique approach brings fans closer to their favorite team in a way that other media channels can't provide.

•  Live commentary. Similar to LiveTweets, Snapchat's instant messaging feature can be leveraged to create a social commentary between a brand and its fans. Audi connected with fans during the 2014 Super Bowl by sending out humorous snaps throughout the game. Audi, in partnership with Huge and The Onion, saw the first, and to this day, most successful Snapchat campaign execution in the app's history.

It's important to identify your marketing goals and consumer demographic before jumping on the Snapchat bandwagon. The app can be a great way to interact and excite your customers, particularly for those whose products and services cater to Gen Y. But if you're a B2B or new to the game, adding Snapchat to your social media agenda probably isn't the best idea right now.

If you do decide to adopt this untraditional marketing channel, be aware that the app does not offer native performance analytics. This means there is no way to measure your return on investment. The recent launch of Snapcash could mean that the app has e-commerce in its sights for the future. But as of now, there’s no confirmation.

So if you're a brand that chooses to go this route, you'll need to get crafty if you plan to measure customer engagement through Snapchat. For example, you could create a unique hashtag for Snapchat followers, allowing you to track performance through other social media outlets. Or if you're offering a discount, be sure to use a promotional code exclusively for Snapchat followers to measure your reach.

What’s Next?

As with all new media avenues, Snapchat requires a bit of time and effort on your team's part in order to successfully engage with audiences. However, when used correctly, it can be a powerful tool in attracting and connecting with the coveted young adult market. And even if you decide that Snapchat is not for you, the tactics that have proven effective for other brands can be easily implemented into your current social media strategy.