Millward Brown Digital teamed up with Snapchat to analyze the app’s first attempts at monetization, and the results look pretty good. While the study was commissioned by Snapchat itself, the branding consultancy found users had a generally favorable reaction to both “Brand Stories” and sponsored versions of “Our Stories.”
In an analysis of the first six advertising campaigns to appear in the app, Millward Brown Digital found that Snapchat users were three times more receptive to mobile ads than average: 60 percent of users liked sponsored “Our Stories,” and 44 percent enjoyed “Brand Stories.”
Not only were users receptive to Snapchat ads, brands saw increases in ad awareness and brand favorability. But most importantly, campaigns led to actual sales. From a release announcing the study:
Research linking ad exposure to offline activity indicated that viewers of the ‘Dragon Age’ video game Brand Story were 7 percent more likely to buy the game, exhibiting purchase intent in the top quarter of similar mobile campaigns. Millward Brown Digital also measured the impact of NBCUniversal’s Ouija and Dumb and Dumber To Brand Stories on actual movie attendance during the films’ opening weekend, finding that the campaigns drove a 13 percent increase in turnout amongst those exposed.
While the app still has a long way to go to live up to its $10 billion valuation, its initial monetization efforts are off to a good start, and investors seem to agree.