It is very clear that Snapchat is doing its best to stay afloat and produce a profit. After seeing the stock get as high as $27 investors now see the stock hovering around $5 a share. While not all advertisers make sense for Snapchat, automakers and car dealerships definitely do. The young Snapchat users are growing older and most will be getting a new or used car in the near future.
Recently, we noticed that specific make and model vehicles are being promoted on Snapchat. These ads can be seen before, after and during Snapchat stories in the Discover section. They can also be seen with their own Snapchat Discover stories. One would imagine that advertisers have to pay a lot more to get their own Discover story. With more and more users fleeing Snapchat because of all the “fluff” it likely is not worth it to advertise as a Snapchat Story in the Discover section.
We saw an ad for the 2019 Jeep Cherokee in between Snaps from individual people. While this is not common, it is something Snapchat has tried ever now and again. There was a time when you had to hold your finger on the phone to get a single Snapchat story to continue playing. Now, with Snapchat having the autoplay feature you can watch dozens of Snapchat stories without ever touching your phone other than the first click.
In our opinion, this was a very bad decision for Snapchat. The way in which they could convince advertisers that users were definitely watching their ads was to force users to hold their finger on the phone. Users can now click a story, set their phone down on the countertop and walk away. There is no way to prove users are looking at their phone the entire time. Now it is a crapshoot to see just how many views a Snapchat ad is getting. It was also a fault of Snapchat’s to not put ads at the beginning of personal snaps. This is how they would have made a ton of money.