SNAPCHAT AND THE IMPACT ON TARGETING MILLENIALS

Prepared for
Shari Weiss, Professor
San Francisco State University, California

Prepared by
Olivia Goldstein, Student
San Francisco State University, California

July 1, 2015

TABLE OF CONTENTS

LIST OF ILLUSTRATIONS
.. iii
EXECUTIVE SUMMARY
... iv
INTRODUCTION
.. 1

BACKGROUND.. 1

PURPOSE..
1

SIGNIFICANCE
1
SCOPE
1
ORGANIZATION
1
FINDINGS
.. 2

Millennials make up Snapchats primary demographic .

2

Snapchat will continue to

grow. 3
Company growth in result of Snapchat involvement..
6
CONCLUSTIONS AND
RECOMMENDATIONS.. 8
APPENDIX.
..
WORK CITED
.. v
CHECKLIST

vi

LIST OF ILLUSTRATIONS
FIGURE 1: Social Media vs. Traditional Media
Grid 3
FIGURE 2: Snapchat Monthly Active Users
4
FIGURE 3: Social and Messaging Apps Growth in Last Six Months
.. 5

FIGURE 4: Snapchat Marketing Strategies

. 6
FIGURE 5: Figure 5: Taco Bell, Acura, and Wet Seal Snapchat Examples
. 7

EXECUTIVE SUMMARY
Purpose

The purpose of this report is to look into Snapchat as an effective way

to market to millennials. This report shows why and how companies
can gain a larger following by using the social media app.
Findings
Data has proved that millennials make up a large portion of Snapchat
users and are excited to use the app for all of its features. Findings
show that Snapchat is continuing to grow and has the ability to be the
top social media app. Findings also reveal that companies who have
experimented with advertising through the app have gained positive
publicity and have seen the results they hoped to achieve.
Conclusions & Recommendations
Based on the findings, it is recommended that companies start
advertising with Snapchat if trying to gain millennial following. Starting
with basic use can help to eventually run campaigns and have a loyal
following base.

INTRODUCTION
Background
Snapchat was created in 2011 by then Stanford students, Evan Spiegel and
Bobby Murphy. The photo-sharing app allows sending a picture or video for up
to 10 seconds before vanishing. The My Story feature allows the snap to
be visible by the followers for 24 hours. Taking away the social part, Snapchat
has released Discover, which allows top editorial teams to deliver news and
stories. The app was created in Spiegels fathers living room and quickly took
off with high school kids. Snapchat experienced a 67% growth between
December 2013 and May 2014 and now has over 100 million daily active
users.

Purpose
Many businesses today do not realize the benefits of using Snapchat to target
millennials.

Significance
Snapchat is experiencing a huge boom and is a great way to market to
millennials. With Snapchats primary demographic falling within this age
range, companies should be using this to their advantage.

Scope
To show why Snapchat is an effective way to target millennials and how
companies can use Snapchat to build a loyal following by advocating their
brand or product.

Organization

This report will begin with a findings section. It will highlight millennials
usage of Snapchat, Snapchats projected growth and examples of how
companies are experience positive results after their Snapchat involvement.

FINDINGS
Millennials make up Snapchats primary demographic
86% of Snapchat users fall between the ages of 13 and 35. This large
demographic makes it a huge target for any business trying to reach
millennials. Millennials are spending so much time on the app that it is
becoming a major competitor with top social media apps such as Facebook
and Instagram. More than 60% of U.S. 13-34 year-old smart phone users are
Snapchatters, and 32.9% of U.S. 13-34 year-olds have Snapchat accounts.
Millennials account for over $1 trillion in U.S. consumer spending which shows
how important their views and opinions matter about a company. With the
purchasing power being so influential on the market, it is crucial for
companies to reach out to this generation in hopes of capturing their interest.
Time magazine continues to prove this by stating: By 2017, millennials will
have more buying power than any other generation. But so far, theyre not
spending like their parents did. The magazine continues to exemplify that
unlike the baby boomers, millennitals prefer product reviews from people
they do not know which are most often found online. All of this shows the
importance of the digital age and social media on reaching out to this
audience.

Digital and social media marketing is becoming more successful than

traditional media marketing. Millennials purchase power and interest in social
media proves that companies should be directing their focus towards
marketing through social media. Below Figure 1 shows the differences, and
pros and cons of social media and traditional media.
Figure 1. Social Media vs. Traditional Media Grid

Created by Laura Kight. Data source http://socialmediastrategiessummit.com/blog/benefitstraditional-marketing-social-media/

The pros and cons of social media, along with the appeal, are more beneficial
than the traditional method.
So many millennials are using Snapchat and prefer to be targeted through
digital forms making Snapchat a great platform to reach the demographic.
Companies should consider Snapchat if trying to reach this market segment.

Snapchat will continue to grow

Snapchat has come a long within its four years of existence, and is only going
to continue to grow. The popularity of the social media app has grown to the
top 5 free apps in the Apple App store. Approximately 400 million snaps are
sent per day between its 100 million daily active users.

Figure 2 shows how significant the growth of Snapchat has been between its
launch and November 2014.
Figure 2. Snapchat Monthly Active Users

The monthly active users have increased at record breaking speed. From
December 2013 to May 2014, Snapchat experienced a 67% growth in active
users.

Snapchat is not a quick fad and is projected to continue this exponential

growth. Figure 3 shows the growth in the last six months compared to other
social media apps.
Figure 3: Social and Messaging Apps Growth in Last Six Months

Snapchat is taking the lead in growth along side its competitors. It is

surpassing major social media apps such as Facebook, Instagram, and
Facebook Messenger.

Company growth in result of Snapchat involvement

The few companies who have began marketing with Snapchat have seen
great results proving that this might be the best new marketing platform.
With so many daily active users and the constant growth the app is seeing,
Snapchat provides a large available audience. Figure 4 explains the creative
ways to market through the app.
Figure 4: Snapchat Marketing Strategies

Created by: Marketo and Column Five. Sorces: Mashable, Forbes, Business Insider, Inc, and All
Things SD

These are six ways to capture a market using Snapchat. These are very
creative and have a high success rate due to the new and fun styles that
grasp attention. Companies should use this to their advantage to be ahead of
the marketing game while they still can.

Only a few companies have been able to try out this new strategy, but all
have been effective. Because the app is so new, it is being received well.
Figure 5 shows examples of the first few companies who have used Snapchat
in creative ways to gain followers and attention.

Figure 5: Taco Bell, Acura, and Wet Seal Snapchat Examples

Created by: Marketo and Column Five. Sorces: Mashable, Forbes, Business Insider, Inc, and All
Things SD

Taco Bell, Acura, and Wet Seal used different approaches but all gained large
amounts of followers from their campaigns. Now that they have more
followers, more people will see their content. These 10 second snaps
instantly brought them attention. The simplicity makes users more willing to
cooperate and want to know the latest about their favorite way. Also, because
the creative advertising is so new, many are intrigued and want to be a part
of the excitement.

CONCLUSIONS AND RECCOMMEDATIONS

Conclusions
Although Snapchat is relatively new, the photo-sharing app has a huge
millennial usage rate, is continuing to grow, and is an effective way to
market. Snapchats large following is excited about the app and is eager to
see it evolve. The app is surpassing its competitors and growing
exponentially. Companies are finding creative and effective ways to advertise
through the app, especially to millennials.

Recommendations
Companies should use Snapchat to target millennials and gain followers.
Using the digital age and social media as an advantage will result in positive
results. Starting with a small following and using promotions or creative
content will produce a larger following and more publicity.

Appendix
Work Cited
http://www.businessinsider.com/snapchat-discover-ad-rates-20153#ixzz3eU21PQG6
https://www.snapchat.com/ads
http://expandedramblings.com/index.php/snapchat-statistics/1/,
http://blog.marketo.com/2014/02/infographic-leveraging-snapchat-forbrands.html
http://www.socialmediaexaminer.com/snapchat-for-business/
http://www.adweek.com/socialtimes/social-media-statistics-2014/499230
http://adage.com/article/cmo-strategy/toyota-local-geo-targeted-snapchatads/299251/

http://time.com/3931858/snapchats-ad-agency/
http://www.smartinsights.com/digital-marketing-platforms/popularitysnapchat-infographic/
http://www.visualistan.com/2014/09/social-media-cheat-sheet-for-brands.html
http://www.hotpotatosocialmedia.com/snapchat-marketing-best-practices/
http://socialmediastrategiessummit.com/blog/benefits-traditional-marketingsocial-media/