Snap stands to gain the most from expanding digital advertising expenditure

Snap has turned to using attention as a measure of advertisement performance rather than the length or the number of impressions generated and consumed

Digital advertising expenditure of most companies in India will likely more than double over the next three to five years, led primarily by increasing premiumisation of smartphones, presence of connected televisions at homes, and the growth of ecommerce (ecom) across time formats, said. 

 

Pulkit Trivedi, India managing director (MD) of photo and video-sharing platform Snap.

 

The social media intermediary, with over 250 million monthly active users, stands to gain the most from this growth in ad expenditure, Trivedi said, adding that Snap will play to its strength of being the “GenZ” platform.

 

“The biggest distinction we make is that our platform is not for 16-54-year-olds, but rather for 13-30-year-olds… Though we have a few users who are above 30, yet 90 per cent of our user base is 13-30,” Trivedi said.

 

Snap has seen the number of advertisers on its platform grow more than 10 times over the last two years. These advertisers include large ones such as L’Oreal and Mondelez, ecom players like Amazon and Flipkart, fashion and beauty retailers such as Myntra and Nykaa, and quick commerce companies, he said.

 

The format of advertisements on Snap, however, differs from traditional platforms, as most new-age social media users do not respond well to the traditional approach of building brand awareness and then prompting them to buy the product, Trivedi said.

 

“This whole classic funnel loop or advertising or brand loop is now totally fallen apart. It’s not like a linear journey. It’s very intertwined. 

 

Which is why I do believe that people like us will continue to build more value for advertisers in the next few years,” he said. To better monitor the reach of ads on its platform, Snap has turned to using attention as a measure of performance rather than the length or the number of impressions, Trivedi said.