Snapchat Ad Shakeup: 5 New Features That Will DOUBLE Your ROI in 2024!

After a challenging fourth quarter last year—marked by sluggish ad revenue growth, rising costs, and subsequent layoffs—Snapchat has managed to bounce back in the first quarter of this year. The turnaround was driven by stronger ad performance, a sharper business focus, and a major push toward small and medium-sized businesses (SMBs). This renewed strategy led to an 85% year-over-year surge in the number of SMB advertisers on the platform.

Redesigned Ad Formats

Snap recently hosted a webinar featuring two key product leaders who outlined major changes to its advertising system. The discussion focused on making ads more effective for all advertisers, and while the full presentation lasted 14 minutes, here are the essential takeaways.

Snapchat has revamped its ad formats to provide a more uniform and seamless promotional experience within the app. The goal is to ensure every user interaction with an ad is intentional, delivering outcomes that align with advertisers’ objectives. The new full-screen display format enhances visibility and engagement, while Snapchat is also refining its augmented reality (AR) ad offerings to help brands maximize exposure for their interactive Lenses.

Additionally, Snap is broadening its “Total Takeover” product lineup, introducing a State-level First Story feature that allows brands to target specific regions more effectively.

Ad System Upgrades

Snapchat is preparing to roll out a new AR ad product that gives advertisers exclusive access to the Lens Carousel for an entire day. In addition, the company has streamlined the app installation process for advertisers, reducing the number of steps required for users to download apps without leaving Snapchat.

To support mobile gaming advertisers, Snap has introduced improved bidding tools designed to maximize campaign efficiency.

Enhanced Ad Bidding & Performance Measurement

Snap is currently testing Value Optimization, a feature that enables advertisers to bid based on the actual value of purchases rather than just the number of conversions. Furthermore, the company has launched a new bidding method, 7/0 delivery optimization, which focuses on click-through conversions within a seven-day period. Early adopters have reported lower cost-per-purchase and higher return on ad spend (ROAS).

Snap is also expanding its network of partners to enhance campaign management, including deeper integration with Customer Relationship Management (CRM) platforms for better data analysis.

Improving Ad Performance & ROI

Snapchat has strengthened its lead generation tools by collaborating with Snowflake, Datahash, LiveRamp, and Tealium to streamline data integration through its Conversions API. This enhancement gives advertisers deeper insights into ad performance.

Another newly introduced Landing Page View optimization goal helps marketers improve session volume, boost landing page interactions, and decrease bounce rates.

A Stronger Focus on Performance

Snapchat has continuously refined its machine learning models to drive better advertising results. These optimizations have led to cost reductions of over 60% for some advertisers compared to traditional engagement-based bidding models.

While many of these improvements were previously announced, they highlight Snapchat’s commitment to strengthening its ad offerings and delivering higher returns for advertisers. If you’re planning to advertise on Snap, these updates provide valuable insights to refine your strategy and maximize performance.