Snapchat Targets Retailers, D2C Brands with Dynamic Ads

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Snapchat has introduced a new feature to help retailers and brands automatically personalize their adverts in real-time. With “Dynamic Ads”, ecommerce advertisers can choose from pre-loaded templates and push ads to their target audience, with the ads automatically adjusted to reflect live product prices and availability. This is important as brands plan for ecommerce success since CPG ecommerce has grown tremendously the past five years and now accounts for 50% of the growth in CPG retail. Dynamic Ads will launch first to the US Snapchat audience before being rolled out to additional markets.  

Snapchat’s new launch comes at a time when both retailers and social platforms are vying for a slice of the lucrative online advertising sector, as the rise of social shopping and growing numbers of digital touchpoints generate new opportunities for consumer engagement. Whilst brands have been utilizing existing Snapchat tools such as Snap Pixel and Visual Search for some time, Dynamic Ads could see Snapchat compete more successfully with the likes of Facebook and Instagram through automating how marketers create and personalize their ads at scale.  

With social shopping in the US projected to reach USD84bn by 2024, brands and retailers looking to drive conversion amongst Gen Z and Millennial audiences should consider enrolling in new advertising programs on social, with initial feedback from Dynamic Ads highlighting benefits such as reduced cost per purchase and improved return on ad spend.  

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