The latest report from Snapchat uses marketing mix modeling to reveal how Snap ads help CPG brands promote their products on the social media platform. One of the main challenges in CPG marketing is that as consumers purchase CPG items both online and in-store, that makes attributing direct spending to digital campaigns more challenging.
Snapchat analysis: ROI for CPG advertisers
Marketing mix modeling provides a more accurate view of the impact of your online advertising campaigns, which can’t always be easily observed. The system utilizes point-of sale-information and internal and online data points.
Snap explains the analysis like this:
“First, we analyzed return on investment (ROI) benchmarks using Nielsen Compass’s MMM Normative Benchmarking database for rolling 104-week benchmarks in Q4 2020 as well as the previous two quarters of back data. Then, we selected a representative set of five US advertisers within the Personal Care and Beauty vertical, and Nielsen constructed an aggregated dataset of each advertiser’s sales, Snapchat ad spend, ad spend on television, and spend on other digital channels using their Ad Intel dataset, pricing information, and other variables.”
The results show that it’s possible to increase product awareness and brand resonance for a CPG brand by running ads on Snapchat.
Snap Ads provided a much better ROI than all the other types of advertising mentioned. It performed twice as well as overall benchmarks, social and digital.
“In fact, Snapchat showed 1.7x the return on ad sales compared to television advertising and is 2.7x more effective at delivering sales for advertisers.”
Also when it comes to AR campaigns, Snap defines AR Lenses as one of the most effective forms of advertising:
“When evaluating advertisers in the Personal Care and Beauty category, AR Lenses were one of the most effective forms of advertising measured, in part because of the experiential element other forms of advertising don’t offer.”
It’s really about the creative, and not every brand will be able to do AR campaigns for their promotions. But the data suggests it’s well worth investing in AR if you can manage to pull it off.
