Although Snapchat is still struggling to net a profit, they make a million dollars a day with branded AR lenses. If Snapchat can remain crazy popular with its users, this may help the company get out of its revenue slump.
Snapchat’s shares dropped 22 percent since their March IPO, and their Q3 earnings saw a revenue loss of $0.14 per share with the slowest user growth ever. But there’s still growth, and Snap has never really been profit focused anyways.
CEO Evan Spiegel certainly isn’t worried, publicly at least. Spiegel’s product strategies have been mirrored by Facebook and Instagram, and a huge chunk of teens prefer Snapchat over these other social media giants.
Which is why Snapchat can charge upwards of one million dollars a day for augmented reality lenses. Snap’s popularity, especially among teens and young adults with disposable income and social influence, bodes well with media agencies.
AR lenses are one of many features offered on Snapchat, allowing users to superimpose augmented reality images on pictures and videos. If you’ve spent any amount of time on the internet, the dancing hotdog is a testament to how easily an AR lens can turn into a meme.
In September, Snapchat introduced sponsored 3D World Lenses, giving advertisers the opportunity to feature targeted campaigns on the platform. Bladerunner 2049 was the first campaign at the launch, and since then Budweiser, BMW, and McDonalds have jumped on the bandwagon.
Pricing varies depending on when the lens goes live, if it’s a “premium” day like a holiday or anticipated movie release, and the targeting criteria of the agency. If a lens is specific to a region, for example, it’s not going to cost as much as a nationwide campaign.
In a report from Digiday, one NYC-based ad executive stated AR lenses are currently Snap’s most expensive ad product, and for some agencies it’s offered as a standalone purchase. Others reported Snapchat offered a “holistic media-buying plan,” including stickers and filters as well as AR lenses.
James Douglas, SVP and Executive Director of social media for Society explained Snapchat Ads are all about media negotiation, with some of his clients signing annual media contracts, while others may try out shorter stints.
“If it’s a well-known consumer packaged goods company, Snapchat may quote $200,000 for an AR lens, but not on a premium day,” he stated. “Snapchat is very flexible to negotiate media investments with agencies, and I like that.”
According to a Snapchat spokesperson, the base price for a 3D lens running up to 12 months is $300,000. However, the final price depends on if the lens is based on audience impressions or a national takeover on a premium day.
While the AR lenses are not necessarily driving sales for featured brands, users are completely engaged with lenses. Featured lenses are widely shared among users, and screenshots of particularly popular, interesting, or funny lenses end ups shared on other social media platforms.
Even if the lens is being mocked, that still leads to impressions since ultimately the ad is being spread when people send Snaps to friends and feature lenses in Snapchat Stories.
Right now, Snapchat is doing all the engineering for AR lenses. Agencies provide the ad assets and Snapchat creates the lens. Future plans involve opening up creation to select brands, as Spiegel announced in November.
Snapchat is testing a pilot program with Lens Studio, a self-service toolkit allowing advertisers to create their own lenses in as little as an hour. Eventually Snap plans on offering the AR toolkit to advertisers for free, but for now it’s only available to top clients.
How becoming better listeners eliminates our culture’s growing isolation
(BUSINESS MARKETING) We have all be frustrated by someone who doesn’t listen to us; so why not make sure that you are taking the steps to not be them, and be better listeners.
We all want the same thing: to be heard. In this digital age, we’ve created an endless stream of cries for attention via comment sections, forums, and social media feeds—shares, retweets, tags, videos, articles, and photos. Worse, our words echo in our digital bubbles or specific communities, doing nothing but making us lonely and isolated. However, in the midst of a divided political climate, we can all stand to strengthen our ability to listen.
Me? A bad listener? What are you trying to say? I got enough flaws to worry about and don’t wanna hear about another skill to improve. Oh, the irony.
“Bad listeners are not necessarily bad people,” assures Kate Murphy in her new book You’re Not Listening. “Anyone can get good at it. The more people you talk to, the better your gut instinct. You’re able to pick up those little cues. Without them, you’re not going to get the full context and nuance of the conversation,” she says in an interview with The Guardian’s Stephen Moss.
Our bad listening aside, we can all remember a time when we weren’t treated with the attention we craved. Moments where you’d do anything for the person you’re conversing with to give a sign of understanding—of empathy—to validate our feelings, to acknowledge the vulnerable piece of ourselves we’ve entrusted to them is cared for. Nothing is worse when we’re met with blank expressions and dismissive gestures or words. These interactions make us feel small and lonely. And the damage can stay with us.
- Show you care by making eye contact and putting away your phone.
- Patience. Everyone opens up on their time.
- Ask open-ended questions. Yes/no responses inhibit the flow of conversation.
- Repeat what you’ve heard. This clarifies any misunderstanding and validates the speaker.
- Give space. Let the conversation breathe—silent pauses are healthy.
By becoming better listeners, we show care. We become curious about and empathetic towards others, leaving our bubbles—we become a little less lonely.
Audio branding: Is this the next big boost in brand recognition?
(BUSINESS MARKETING) Brands have invested heavily in audio branding in 2021, here’s how that is changing up the branding rankings for businesses.
Media consumption and engagement with brands across digital platforms is increasing, according to sonic branding agency amp; and companies investing in audio branding are creating a significant competitive advantage. The Best Audio Brands (BAB) index created by amp uses 5 key criteria to measure audio investment performance: Customer recognition, customer trust, customer experience, customer engagement and customer belonging. The agency claims that companies investing in high quality audio assets for their brands have gained ground by establishing a recognizable audio identity.
Michele Arenese, amp CEO said, “Making a brand heard is more important than ever before. The past 18 months have accelerated the importance of sound and voice as vital elements of the brand identity and customer experience toolbox. Meaningful and purposeful brand communication takes advantage from a ownable and authentic sound ecosystem.”
For the second consecutive year, Mastercard ranked highly across all key criteria measured by the BAB and topped the list. Other brands that fared well on this year’s index were Netflix, which moved up 27 places by using it’s famous “ta-dum” more widely and Coca-Cola which collaborated with Tyler the Creator and invested more in bespoke music. In addition, 5 new brands to make the top 10 this year were Audi, Mercedes, Netflix, Hyundai and Siemens. The highest climbing brands were in the financial sector: HSBC, American Express and J.P. Morgan. The highest climbing sector, however, was beverages followed by automotive. Brands that dropped in the rankings this year were Google, Amazon, Colgate, Goldman Sachs, and Danone.
Björn Thorleifsson, Head of Strategy & Research, amp said: “This year has shown that those who were already embarking on their sonic branding journeys have increased their lead on trailing rivals – now clearly falling behind. Given the evolving ability of sound to reach consumers whatever the device or channel they’re on, we expect to see increased investment from brands looking to stand out amongst the online noise. There are already best practice examples from leaders, such as Mastercard, and we’d encourage those who want to improve brand recognition and even performance, to adopt a little less conversation on sonic branding, and a little more action.”
Buffer’s four-day workweek experiment: Boost or bust?
(BUSINESS MARKETING) After trying out a four-day workweek last year, Buffer is moving forward with the format going into 2021, citing increase in productivity and work-life balance.
The typical five-day workweek is a thing of the past for Buffer, at least for now. The company has decided to implement a four-day workweek for the “foreseeable future.”
Last year, the company surveyed its employees to see how they are dealing with the ever-changing landscape of the pandemic and the anxiety and stress that came along with it. They soon learned employees didn’t always feel comfortable or like they could take time off.
Employees felt guilty for taking PTO while trying to meet deadlines. Juggling work and suddenly becoming a daycare worker and teacher for their children at the same time was stressful. So, Buffer looked for a solution to help give employees more time and flexibility to get adjusted to their new routines.
Four-Day Workweek Trials
In May, Buffer started the four-day workweek one-month trial to focus on teammates’ well-being. “This four-day workweek period is about well-being, mental health, and placing us as humans and our families first,” said Buffer CEO and co-founder Joel Gascoigne in a company blog post.
“It’s about being able to pick a good time to go and do the groceries, now that it’s a significantly larger task. It’s about parents having more time with kids now that they’re having to take on their education. This isn’t about us trying to get the same productivity in fewer days,” Gascoigne said.
Buffer’s one-month trial proved to be successful. Survey data from before and after the trial showed higher autonomy and lower stress levels. In addition, employee anecdotal stories showed an increase in worker happiness.
With positive results, Buffer turned the trial into a long-term pilot through the end of 2020. This time, the trial would focus on Buffer’s long-term success.
“In order to truly evaluate whether a four-day workweek can be a success long-term, we need to measure productivity as well as individual well-being,” wrote Director of People Courtney Seiter. “Teammate well-being was our end goal for May. Whether that continues, and equally importantly, whether it translates into customer and company results, will be an exciting hypothesis to test.”
Buffer’s shorter workweek trials showed employees felt they had a better work-life balance without compromising work productivity. According to the company’s survey data, almost 34% of employees felt more productive, about 60% felt equally as productive, and only less than 7% of employees felt less productive.
However, just saying productivity is higher isn’t proof. To make sure the numbers added up, managers were asked about their team’s productivity. Engineering managers reported that a decrease in total coding days didn’t show a decrease in output. Instead, there was a significant output increase for product teams, and Infrastructure and Mobile saw their output double.
The Customer Advocacy team, however, did see a decline in output. Customer service is dependent on customer unpredictability so this makes sense. Still, the survey showed about 85% to 90% of employees felt as productive as they would have been in a five-day workweek. Customers just had to wait slightly longer to receive replies to their inquiries.
With more time and control of their schedules, Buffer’s survey shows an increase in individual autonomy and decreased stress levels reported by employees. And, the general work happiness for the entire company has been consistent throughout 2020.
What’s in store for 2021?
Based on positive employee feedback and promising company results, Buffer decided it will continue the company-wide four-day workweek this year.
“The four-day work week resulted in sustained productivity levels and a better sense of work-life balance. These were the exact results we’d hoped to see, and they helped us challenge the notion that we need to work the typical ‘nine-to-five,’ five days a week,” wrote Team Engagement Manager Nicole Miller.
The four-day workweek will continue in 2021, but the company will also be implementing adjustments based on the pilot results.
For most teams, Fridays will be the default day off. For teams that aren’t project-based, their workweek will look slightly different. As an example, the Customer Advocacy team will follow a different schedule to avoid customer reply delays and ticket overflow. Each team member will still have a four-day workweek and need to meet their specific targets. They will just have a more flexible schedule.
Companies who follow this format understand that output expectations will be further defined by area and department level. Employees who aren’t meeting their performance objectives will have the option to choose a five-day workweek or might be asked to do so.
If needed, Fridays will also serve as an overflow workday to finish up a project. Of course, schedules will be evaluated quarterly to make sure productivity is continuing to thrive and employees are still satisfied.
But, Miller says Buffer is “establishing ambitious goals” that might “push the limits” of a four-day work week in 2021. With the world slowly starting to normalize, who knows when a four-day workweek might reach its conclusion.
“We aren’t sure that we’ll continue with the four-day workweeks forever, but for now, we’re going to stick with it as long as we are still able to hit our ambitious goals,” wrote Miller.
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