Snap said it is seeing positive momentum in the advertising market, including the brand advertising segment that struggled in the early days of the coronovirus epidemic. The company also said Q3 results from advertisers looking for “platforms that share corporate values”, a skewed reference to Float’s major national events such as Facebook’s content moderation practices, from George Floyd protests Were shocked
Shares of the company rose more than 20% following Q3 earnings, revenue and daily user reports by the company, meeting all beat expectations.
Chief business officer Jeremy Gorman said in prepared comments that Snap was looking to “begin the recovery from brand advertisers in the third quarter, and maintain flexibility from direct response advertisers”.
Snap worked with advertisers at a time that was favorable at a time when many consumers were shopping at home – for example, Snap’s augmented reality tool to offer consumers virtual “try-ons” Be careful when using, because many retailers have closed dressing rooms and products like new used makeup.
As the epidemic suffered economic losses earlier this year, performance-oriented, or direct-response (DR) advertising was stronger than other forms of advertising. That DR ad includes methods that prompt consumers to take immediate action, such as downloading an app or purchasing something from an e-commerce site.
Conversely, brand advertising typically communicates what a company is about or over rather than trying to drive less sales. UBS analysts said in a recent note that direct-response has led to recovery, but the brand has been slow to roll back advertising.
In his prepared remarks, Gorman also said that brands and other marketers use “periods of uncertainty” to evaluate their advertising spend. In particular, Facebook has come under fire in recent months for dealing with hateful content and misinformation, prompting some advertisers to boycott the company over the summer.
“We saw many brands aligning their marketing efforts with platforms that share their corporate interests,” he said. “This led us to engage in real-time with advertisers and agencies to ensure that our existing partners as well as new prospects understood our offering in relation to our values.”
He said the company’s sales team negotiated with executives to discuss the company’s brand security status and privacy principles.
“We implemented a strategy to ensure advertisers invested in Snap and found quick and sustained success on our platform as they were with us, and we believe that customers provide our team, alignment on our brand safety principles , And the strong ROI that our Gorman said advertising partners contributed to our growth this quarter.